What is a high risk bank account?

High risk merchant accounts are designed to accommodate businesses that are financially unpredictable, prone to chargebacks or pose a certain degree of potential loss to merchant service providers and banks.

What businesses do banks consider high risk?

Examples of high risk businesses include:

• eCommerce.
• Anything adult-oriented.
• Tobacco.
• Gambling.
• Financial services.
• Legal services.
• Travel and hospitality.
• Health and wellness.

What is considered a high risk business?

A high-risk business is an operation that, for one or more reasons, is perceived by credit card processors or financial institutions to represent an elevated risk for chargebacks. High-risk businesses are simply merchants who are perceived to have a greater risk of financial failure.

What is high risk merchant accounts?

A high-risk merchant account is a merchant account given to a business that the payment processor deems to be at greater risk of fraud and chargebacks. Payment processors make that determination based on factors such as the nature of the business, its financial history and its location.

Why do high risk merchant accounts require reserves?

Why do High Risk Merchant Accounts Require Reserves? From the perspective of a credit card processing bank, each transaction processed for a merchant represents a measure of financial risk. Chargebacks and other issues can result in losses for the processing bank; in order to insulate themselves from such losses, many credit card processing banks may require a reserve on your merchant account.

Why is my bank ACCT locked?

Accounts are typically locked for a few reasons: Your account verification was entered incorrectly, or not completed. Your banking information was found to be incorrect. Your method of payment was rejected.

What is a high risk merchant account?

A high risk merchant account is a bank account or payment processing agreement tailored to a business which is deemed high risk. High risk businesses usually need to pay higher fees for merchant services, which can add to their operating costs.

What is high risk payment processing?

High risk payment processors are definitely legal and help merchants throughout the world to increase turnover and cut costs. High-risk payment processors provide assistance in: merchant account opening; secure payment gateway integration; fighting chargebacks; API, VT, HPP, Plug-ins integration, etc.