How to Get a High-Risk Merchant Account: A Complete Guide for Businesses Facing Greater Payment Challenges

For many businesses, obtaining a standard merchant account is a straightforward process. But for companies that fall into higher-risk categories—whether due to industry type, business model, transaction volume, or chargeback rates—the path is far more complex. These businesses often discover that traditional banks and mainstream payment processors are unwilling to approve their applications or offer them the flexibility they need. That’s where a high-risk merchant account becomes essential.

A high-risk merchant account is a specialized payment processing account designed for industries and businesses that acquirers view as having a higher likelihood of financial loss, chargebacks, or regulatory complications. Though the process can be more demanding, securing a high-risk merchant account opens the door to reliable payment processing, global expansion, and long-term business stability. This guide explains exactly what high-risk merchant accounts are, why businesses need them, and how to successfully obtain one.

What Makes a Business “High Risk”?

A business may be categorized as high risk for several reasons. Some industries have higher-than-average chargeback rates, while others operate across borders or sell subscription-based products that can lead to customer disputes. Some are subject to tighter regulations or in markets where consumer behavior trends more volatile.

Common factors that define a high-risk business include:

Industry type: Sectors like travel, adult entertainment, nutraceuticals, supplements, CBD, subscription services, online coaching, and certain e-commerce categories frequently fall under high risk.
Chargeback exposure: Businesses with chargeback rates higher than card network thresholds face greater scrutiny.
Long fulfillment cycles: Industries like travel or custom manufacturing can be risky because services or products are fulfilled weeks or months after purchase.
Recurring billing models: Subscription-based companies often deal with higher customer disputes or cancellations.
High ticket values: Expensive purchases mean greater financial exposure for processors.
International operations: Cross-border or multi-currency transactions introduce additional fraud and regulatory risk.
Regulated products: Items like supplements, vape products, or digital goods may be allowed but heavily regulated.

If your business fits these profiles, a traditional payment processor may reject your application outright. A high-risk merchant account provider is specifically equipped to manage these realities without disrupting your ability to accept payments.

Why You Need a High-Risk Merchant Account

A high-risk merchant account is more than a workaround—it’s an essential tool that enables stability, growth, and compliance.

1. Reliable Payment Processing

Mainstream processors may shut down high-risk accounts with little notice if chargebacks spike or risk profiles shift. High-risk providers understand the nature of your business and offer setups designed for durability and consistency.

2. Higher Chargeback Tolerance

High-risk processors provide more lenient thresholds and tools to monitor, prevent, and manage disputes.

3. Access to Global Markets

High-risk merchants often serve customers worldwide. Specialized processors offer multi-currency support and global acquiring relationships.

4. Risk Mitigation Tools

Many high-risk providers include built-in fraud protection, chargeback alerts, and advanced verification systems.

5. Flexibility for Unique Business Models

High-risk processors can work with companies that have long-term contracts, recurring billing systems, or nontraditional product categories.

With the right merchant account, high-risk businesses gain stability, revenue continuity, and the infrastructure needed to scale.

How to Get Approved for a High-Risk Merchant Account

Securing a high-risk merchant account requires preparation, documentation, and transparency. While the process is more involved than a standard merchant account, you can significantly improve your approval odds with the right approach.

1. Prepare Strong Business Documentation

High-risk underwriters require extensive documentation to evaluate financial stability, business legitimacy, and operational practices. Be ready to provide:

Government-issued ID and proof of identity
Business licenses, corporate documents, and proof of incorporation
Bank statements and processing history (typically 3–6 months)
Financial statements or cash-flow details
A clear, honest business model explanation
Website compliance documentation (policies, terms, privacy notices)

Businesses with complete documentation demonstrate credibility and reduce perceived risk.

2. Maintain Transparent and Compliant Business Practices

Underwriters look for signs that a business is reliable, transparent, and compliant with card brand and regional regulations. This means ensuring:

Your website is fully compliant with card network rules
Clear terms and conditions, refund policies, and customer service contact information are visible
Product descriptions are accurate and not misleading
Privacy and data protection statements are properly displayed
Checkout flow is transparent and secure

A compliant business is more likely to be approved and retain stable processing.

3. Demonstrate Chargeback Management Strategies

Chargebacks are one of the primary concerns for high-risk processors. To stand out, show that you have:

A proactive dispute prevention strategy
Fraud detection and identity verification tools
Refund and cancellation processes clearly defined
Chargeback alerts or network programs (like Ethoca or Verifi) integrated

The better your ability to control disputes, the more attractive your application becomes.

4. Show Financial Stability

Underwriters want assurance that your business has the financial health to cover potential chargebacks or liabilities. This may include:

Stable cash flow
Sufficient reserves
Positive bank account history
A reasonable processing volume that matches your business stage

Businesses with consistent financials are more readily approved.

5. Choose a Reputable High-Risk Processor

Not all high-risk merchant services are equal. Some offer favorable rates and advanced technology, while others may lock businesses into high fees or restrictive contracts. When selecting a provider, consider:

Experience in your specific industry
Supported payment methods
Multi-currency or global capabilities
Contract terms, fees, and reserves
Fraud protection tools
Chargeback management systems
Level of customer support

The right processor becomes a long-term partner—not just a vendor.

Understanding the Costs of a High-Risk Merchant Account

High-risk merchant accounts come with higher fees than traditional accounts due to the increased exposure for acquirers. These may include:

Higher transaction rates
Rolling reserves
Chargeback fees
Monthly or annual service fees
Gateway costs
Risk monitoring fees

While these costs may seem higher upfront, they provide access to payment processing that would otherwise be unavailable. And with the right strategies in place, fees can be optimized over time.

Building Long-Term Success With a High-Risk Merchant Account

Approval is only the beginning. To maintain your account and avoid interruptions:

Keep chargebacks below industry thresholds
Maintain transparent business practices
Update your provider about major changes (volume spikes, new products, expansion)
Monitor fraud and disputes actively
Keep your website and policies updated
Maintain consistent financial behavior

A well-managed high-risk merchant account becomes an invaluable asset—supporting business continuity, customer trust, and revenue growth.

Looking to get a High-Risk Merchant?

Contact CPT Secure today by click on the button below and tell us all about your business. We actively work with dozens of high-risk acquirers across the globe.

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High Risk Merchant Accounts