6 Best High-Risk Merchant Service Providers

If you’ve ever been turned down by a standard payment processor like Stripe or PayPal, you know how frustrating it can be. It often has nothing to do with your business’s quality or legitimacy; it’s simply because your industry falls into a category they consider “high-risk.” This classification can feel like a roadblock, but it’s actually a signpost pointing you toward a better-fit solution. A high-risk merchant account is designed specifically for businesses like yours, providing the stability and tools needed to accept payments securely. This guide will walk you through everything you need to know about finding the best high risk merchant service providers, what they offer, and how to choose a true partner for your business.

Key Takeaways

Understand the Costs of Doing Business: Higher fees and rolling reserves are standard for high-risk accounts, reflecting the processor’s financial risk. Focus on finding a partner with transparent pricing so you can budget effectively and avoid hidden charges.
Prioritize Features That Protect Your Revenue: A great provider offers more than just basic payment acceptance. Look for essential tools like multi-layered fraud protection, chargeback prevention alerts, and multi-currency support to secure your business and enable growth.
Actively Manage Your Account to Build Trust: Your relationship with your provider is a partnership. Keep your account in good standing by communicating proactively, staying on top of security compliance, and carefully monitoring your transactions.

What Is a High-Risk Merchant Account?

A high-risk merchant account is a specialized bank account that allows businesses to accept credit and debit card payments, even if they operate in an industry that traditional processors consider risky. If you’ve been turned down for a standard merchant account, this is the solution designed for you. Processors classify businesses as “high-risk” when they see a greater potential for financial issues like chargebacks, which happen when a customer disputes a charge with their bank. This classification isn’t a judgment on your business’s quality or legitimacy; it’s simply a risk assessment from the processor’s perspective.

Think of it this way: standard payment processors prefer to work with businesses that have a predictable, low-risk transaction history. But what about businesses in industries like travel, subscription services, or online gaming? These are perfectly legitimate industries, but they often face higher rates of customer disputes or operate under complex regulations. A high-risk merchant account bridges this gap. It provides the essential infrastructure for you to process payments, giving you access to a wider customer base and the ability to grow your business without payment processing becoming a roadblock. While these accounts often come with higher fees or stricter terms to offset the processor’s risk, they are a vital tool for market access and stability in many sectors.

What Makes a Business “High-Risk”?

So, what exactly lands a business on the “high-risk” list? It’s not just one thing but a combination of factors that payment processors evaluate. The most significant factor is your industry. Some sectors are automatically considered high-risk due to heavy regulations or a history of high chargeback rates. Beyond your industry, processors will look at your company’s financial stability and credit history. A history of frequent customer disputes or a less-than-perfect credit score can also lead to a high-risk classification. Essentially, processors are assessing the likelihood that they might lose money from your transactions, and these factors help them measure that risk.

Which Industries Are Considered High-Risk?

Certain industries are almost always categorized as high-risk because of their business model or the products they sell. These include sectors like online gambling, adult entertainment, travel agencies, and businesses offering subscription services. Other examples are pharmaceuticals, credit repair services, and companies that sell high-ticket items like electronics or jewelry. It’s not always about the industry, though. Your business might also be considered high-risk if you process a high volume of transactions, operate internationally, or have a business model with delayed delivery, where customers pay long before they receive a product or service.

Common Myths About High-Risk Accounts

There are a lot of misconceptions floating around about high-risk merchant accounts, so let’s clear a few things up. One common myth is that they are somehow illegitimate or shady. This couldn’t be further from the truth. High-risk accounts are essential, regulated financial tools that allow legal businesses to operate and thrive. Another myth is that all high-risk accounts are the same. In reality, each provider has its own criteria for risk and offers different terms, fees, and features. It’s important to find a provider that understands your specific industry and can offer a solution tailored to your business needs, not a one-size-fits-all plan.

The Best High-Risk Merchant Service Providers

Finding the right payment partner can feel like searching for a needle in a haystack, but it’s one of the most important decisions you’ll make for your business. A great high-risk provider does more than just process transactions; they act as a true partner, offering the tools and support you need to grow securely. The right fit depends on your specific industry, sales volume, and long-term goals.

To help you get started, I’ve put together a list of some of the best high-risk merchant service providers out there. Each one brings something unique to the table, from specialized industry expertise to robust global capabilities. Take a look at what they offer to see which one aligns best with your business needs.

Borderfree Payments

We built Borderfree Payments specifically for high-risk businesses that traditional processors often leave behind. Our focus is on providing a completely customized payment infrastructure that fits your unique operational needs. We combine advanced fraud prevention tools with multi-currency support to help you expand into global markets with confidence. More than just a processor, we offer expert guidance on regulatory compliance, ensuring your payments flow smoothly and securely. We believe that operating in a high-risk industry shouldn’t be a barrier to growth, and our tailored solutions are designed to prove it.

PaymentCloud

PaymentCloud has earned a strong reputation for its excellent customer service and flexibility. They are equipped to handle a wide range of payment types, including credit cards, ACH, eChecks, and even cryptocurrency. This makes them a versatile option for many modern businesses. They specialize in industries like CBD, firearms, adult entertainment, and credit repair. While they do have monthly minimums, their other fees are often minimal, making them a solid choice for businesses looking for a straightforward and supportive high-risk merchant account.

Durango Merchant Services

With over two decades of experience, Durango Merchant Services is a veteran in the high-risk space. They excel at helping businesses get approved, even those that have been turned down by other providers. Their success comes from deep industry knowledge and extensive banking relationships. When you work with them, you get a dedicated account manager who understands your business. They also offer robust international support, processing payments in numerous currencies from over 200 countries, making them a great partner for businesses with a global reach.

SMB Global

If your business serves an international customer base or if you’re working to build your credit, SMB Global is an excellent choice. They focus on leveraging their network of acquiring banks to find favorable rates and terms for their merchants. One of their standout features is their commitment to fast funding, often ensuring next-day deposits. This can be a game-changer for businesses where consistent cash flow is critical. Their ability to secure accounts for merchants with less-than-perfect credit makes them a valuable ally for growing businesses.

eMerchantBroker

eMerchantBroker, or EMB, is known for its high approval rates and its focus on providing stable, long-term processing solutions. They specialize in securing accounts for businesses in nearly every high-risk category, from startups to established enterprises. A key part of their service is their chargeback protection and prevention programs, designed to help you keep your merchant account in good standing. Their expertise in underwriting and risk management means they know how to present your business to acquiring banks in the best possible light, giving you a strong chance at approval.

Easy Pay Direct

Easy Pay Direct is particularly well-suited for e-commerce businesses in high-risk sectors like supplements, SaaS, coaching, and high-ticket sales. Their platform is designed to simplify the payment process with a user-friendly gateway that integrates smoothly with many online shopping carts. They understand the unique challenges these industries face, from recurring billing to managing high transaction volumes. By providing a streamlined and reliable payment experience, they help merchants focus on growing their business rather than worrying about their payment processing capabilities.

What High-Risk Processing Really Costs

Let’s be honest: high-risk payment processing costs more than standard processing. But it’s not because providers are trying to nickel-and-dime you. The higher price tag reflects the greater financial risk they take on when partnering with industries that see more chargebacks and potential fraud. Think of it as a form of insurance for the processor, ensuring they can cover potential losses while keeping your transactions flowing smoothly. Understanding these costs upfront is crucial for budgeting effectively and finding a partner who is transparent about their pricing. When you know what to expect, you can avoid surprises and focus on what really matters—growing your business.

The total cost isn’t just one single fee. It’s a combination of different charges, each serving a specific purpose. You’ll typically see monthly service fees, per-transaction rates, and sometimes a rolling reserve. It’s important to look at the complete picture rather than just one number. A provider might offer a low monthly fee but compensate with higher transaction rates or stricter reserve requirements. By breaking down the fee structure, you can see exactly where your money is going and make a more informed decision. Let’s look at the main costs you’ll encounter so you can confidently assess any proposal you receive.

Understanding Processing Fees and Rates

The most noticeable difference you’ll find with high-risk merchant accounts is the processing fees and rates. These are almost always higher than what a low-risk business, like a local coffee shop, would pay. This isn’t arbitrary; it’s a direct response to risk. Industries labeled “high-risk” often have a higher likelihood of customer disputes, returns, and chargebacks. The payment processor absorbs some of that risk, and the higher fees help them manage it. When you’re comparing providers, pay close attention to the transaction rate, which is the percentage of each sale that goes to the processor. This will have the biggest impact on your bottom line.

Monthly Service Charges

Beyond the per-transaction percentage, you’ll also have a fixed monthly service charge. This fee covers account maintenance, customer support, and access to the provider’s payment gateway and reporting tools. For high-risk accounts, these monthly fees typically range from $5 to $45. At the same time, transaction fees usually fall between 1.95% and 2.4% of each sale. These costs are understandably higher than those for businesses in low-risk categories. When reviewing a quote, make sure you understand both the fixed monthly cost and the variable transaction rate to accurately predict your monthly processing expenses.

How Rolling Reserves Work

A rolling reserve is another common feature of high-risk accounts, and it’s important to understand how it works. Essentially, a rolling reserve is a safety net for the payment processor. The provider withholds a small percentage of your daily or weekly revenue for a set period—often six months. This money is held in a non-interest-bearing account to cover any potential chargebacks or unexpected disputes. After the holding period, the funds are released back to you on a “rolling” basis. While it can impact your immediate cash flow, a reserve protects the processor and ultimately allows them to support your business when others won’t.

Watch Out for These Hidden Fees

While most reputable providers are upfront about their costs, some unfortunately bury extra charges in the fine print. As a high-risk merchant, you need to be extra vigilant. Keep an eye out for unexpected hidden fees like setup fees, early termination fees, or extra charges for PCI compliance. Unfavorable contract terms, like long-term agreements with no exit clause, can also be a costly trap. Don’t just look at the numbers; read the entire agreement carefully. A truly supportive partner will be transparent about all potential costs and provide clear, straightforward terms. Poor customer service can also be a hidden cost, wasting your time and energy when issues arise.

Key Features Your Provider Should Have

Choosing a high-risk merchant service provider is a big decision, and it goes way beyond just finding someone who will approve your application. The right partner doesn’t just process your transactions; they provide a robust toolkit designed to protect your business and help it grow. When you’re operating in a high-risk industry, you face unique challenges, from higher chargeback rates to increased scrutiny from banks. Your payment provider should be your first line of defense, equipped with the features necessary to handle these challenges head-on.

Think of it this way: you wouldn’t build a house without a solid foundation. Similarly, you shouldn’t build your business on a shaky payment infrastructure. The features we’re about to cover are the essential components of that foundation. They ensure you can accept payments from customers around the world, shield your business from fraud, keep chargebacks under control, and integrate smoothly with the tools you already use. A provider that skimps on these features is leaving you exposed. As you compare your options, look past the marketing promises and dig into the specifics of what each provider actually offers. The details are what separate a simple processor from a true payment partner who is invested in your long-term success.

Multi-Currency Processing

If your business serves customers outside of your home country, multi-currency processing isn’t a luxury—it’s a necessity. High-risk businesses often have a global customer base, which is one of the factors that can place them in the high-risk category in the first place. A provider that offers robust multi-currency support allows you to cater to these international buyers by letting them pay in their native currency. This simple step can significantly improve the customer experience, reduce cart abandonment, and build trust. It also removes the guesswork for your customers, as they see the final price without having to worry about conversion rates. For you, it simplifies financial reporting and helps you manage your revenue streams from different regions more effectively.

Advanced Fraud Protection

High-risk industries are prime targets for fraudulent transactions, making advanced fraud protection an absolutely critical feature. A basic processor might offer simple address verification, but you need more sophisticated tools to stay ahead of bad actors. Look for a provider that offers a multi-layered security system. This can include features like AI-powered transaction monitoring, customizable risk rules, CVV verification, and 3D Secure authentication. These fraud prevention tools work behind the scenes to analyze every transaction in real-time, flagging or blocking suspicious activity before it can impact your bottom line. This proactive approach not only saves you money but also protects your business’s reputation and helps you maintain a healthy relationship with your acquiring bank.

Chargeback Prevention Tools

Chargebacks are one of the biggest threats to a high-risk merchant account. A high chargeback ratio can lead to hefty fines or even account termination. That’s why your provider should offer more than just basic processing; they need to give you tools specifically designed for chargeback prevention. This goes hand-in-hand with fraud protection but focuses on stopping disputes before they are officially filed. Effective tools include chargeback alerts, which notify you of a customer complaint and give you a window to issue a refund directly, avoiding a formal chargeback. Another key feature is a clear and customizable billing descriptor, which helps customers recognize your company’s name on their credit card statement, reducing instances of “friendly fraud.”

Simple Payment Gateway Integration

Your payment processor needs to play well with the rest of your tech stack. A complicated, clunky integration process can cause major headaches, delay your launch, and lead to lost sales. A top-tier provider offers a flexible payment gateway that integrates seamlessly with popular ecommerce platforms, shopping carts, and CRM systems. They should provide clear API documentation for developers if you need a custom setup and have a support team ready to assist with any technical questions. The goal is to get you up and running quickly and reliably. A smooth integration ensures a stable connection, minimizes downtime, and provides a frictionless checkout experience for your customers, which is essential for converting sales.

Solutions for Your Specific Industry

The term “high-risk” covers a wide range of businesses, each with its own unique challenges. A provider that specializes in your specific industry will have a much deeper understanding of your needs than a generalist. Whether you’re in the subscription box, travel, or CBD space, a specialized provider knows the common payment models, regulatory requirements, and typical chargeback risks associated with your field. This expertise translates into a smoother underwriting process, more accurately configured risk settings, and valuable guidance on how to stay compliant. They’ve seen what works and what doesn’t for businesses like yours, making them an invaluable partner in helping you operate successfully and sustainably.

Reliable Customer Support

When your ability to accept payments is on the line, you can’t afford to wait days for an email response. For high-risk businesses, responsive and knowledgeable customer support is non-negotiable. If your funds are frozen or your gateway goes down, you need immediate access to someone who can solve the problem. Look for a provider that offers 24/7 support through multiple channels, including phone and live chat. More importantly, ask about their support structure. Do they offer a dedicated account manager? Is their support team trained specifically on the complexities of high-risk payment processing? Having an expert in your corner who understands your business can make all the difference when you’re facing a critical issue.

How to Manage Chargebacks Effectively

Chargebacks are an inevitable part of running a business, especially in a high-risk industry. But they don’t have to sink your ship. Think of chargeback management as a two-part strategy: proactive prevention and efficient resolution. The goal is to stop as many disputes as possible before they happen while having a solid game plan for the ones that slip through.

Effectively managing your chargeback ratio is crucial for keeping your merchant account in good standing and protecting your bottom line. It involves a mix of the right technology, clear communication with your customers, and well-defined internal processes. When you get this system right, you can reduce revenue loss, avoid costly fees, and maintain a healthy relationship with your payment processor. Let’s walk through the key steps to get your chargebacks under control.

Best Practices for Prevention

The best way to handle a chargeback is to prevent it from ever happening. This starts with choosing a payment processor that understands the unique challenges of your industry. A provider that specializes in high-risk will offer tools and support designed to stop fraud before it starts. Beyond your processor, focus on clear communication. Use descriptive billing statements so customers recognize your company’s name. Make your return policy easy to find and understand, and ensure your customer service team is accessible and responsive. Often, a customer will initiate a chargeback simply because they couldn’t get a hold of you to ask for a refund.

Set Up Monitoring and Alerts

You can’t stop what you can’t see. That’s why real-time monitoring and automated alerts are so important. Use advanced fraud protection tools that flag suspicious transactions, like multiple orders from one IP address or mismatches between the shipping and billing address. Staying compliant with security standards is also non-negotiable. You should always adhere to PCI DSS standards and keep your security protocols updated to protect customer data. This not only prevents fraudulent transactions but also builds trust with your customers, showing them their information is safe with you.

Resolve Disputes the Right Way

When a chargeback does occur, you need to be ready to respond quickly and effectively. Don’t ignore a dispute, even if you think you’ll lose. Gather all compelling evidence related to the transaction, including customer communications, proof of delivery, IP logs, and any AVS or CVV verification results. A well-organized and detailed response shows the card-issuing bank that the charge was legitimate. Being prepared to handle disputes is a core part of maintaining a high-risk merchant account, so treat each one with the seriousness it deserves.

Build and Maintain Customer Trust

Trust is your most valuable asset in preventing chargebacks. When customers trust your business, they’re more likely to contact you directly to resolve an issue instead of going straight to their bank. Foster this trust by being transparent in your pricing, clear in your policies, and honest in your marketing. A positive reputation not only encourages customer loyalty but also helps you stay in good standing with your payment partners. Maintaining this trust is key to keeping your business off the MATCH list, a database used by processors to screen for high-risk merchants.

Train Your Team on Chargeback Rules

Your team is your first line of defense. Everyone who interacts with customers or manages transactions should have a basic understanding of the chargeback process. Create a clear, documented policy for how to handle customer complaints and refund requests. When your team can confidently manage these situations, they can often resolve a potential dispute before it escalates into a formal chargeback. A well-trained team that understands the process can respond to inquiries efficiently, provide the right information, and ultimately protect your business’s revenue and reputation.

How to Choose the Right Provider

Finding the right high-risk merchant service provider is about more than just processing payments—it’s about finding a true partner for your business. The right provider understands the unique challenges you face and offers solutions that protect your revenue while helping you grow. Instead of getting overwhelmed by the options, you can break down the decision-making process into a few manageable steps. By evaluating your specific needs and carefully vetting potential partners, you can find a provider that sets your business up for long-term success.

Assess Your Processing Volume

Before you start comparing providers, take a close look at your sales. How many transactions do you process each month, and what is their total value? A provider needs to be able to handle your current volume and, just as importantly, scale with you as you grow. Some processors have minimum or maximum processing requirements, so knowing your numbers will help you narrow down your list from the start. Having a clear picture of your processing history will make it easier to find a provider that can effectively accommodate your business needs without any interruptions.

Determine Your Geographic Needs

Do you sell to customers in different countries, or do you plan to in the future? If so, your geographic reach is a critical factor. You’ll need a provider that offers multi-currency processing and is familiar with international payment regulations. The ability to accept payments from a global customer base can significantly expand your market. Look for a partner that can help you seamlessly accept payments from customers around the world, turning a potential logistical headache into a simple, streamlined process.

Check Your Technical Requirements

Your payment processor should integrate smoothly with the tools you already use to run your business. Does it work with your e-commerce platform, like Shopify or WooCommerce? Can it connect to your accounting software? Beyond integrations, consider the payment gateway itself. Is it easy for your customers to use? A clunky checkout process can lead to abandoned carts. It’s also wise to find a provider that has experience working with businesses in your specific industry and offers excellent, responsive customer support when you need it.

Verify Security Standards

For any business, but especially for high-risk ones, security is non-negotiable. Your provider must be PCI DSS compliant, which is the industry standard for protecting cardholder data. Ask potential providers about their fraud prevention tools, such as address verification (AVS), CVV verification, and 3D Secure. Strong security not only protects your customers’ sensitive information but also safeguards your business from fraudulent transactions and costly chargebacks. Adhering to strict security protocols is one of the best ways to build trust and protect your bottom line.

Review These Contract Terms Carefully

Don’t just skim the contract—read every line. High-risk merchant agreements can contain terms that might not be in your best interest if you’re not paying attention. Look specifically for the contract length, any early termination fees, and the details of their rolling reserve policy. A rolling reserve is common for high-risk accounts, but the percentage and holding period can vary. Make sure you understand all the fees involved and are comfortable with the terms before you sign. Being prepared to handle high-risk merchant providers means knowing exactly what your agreement entails.

Your Application Documentation Checklist

A smooth application process starts with being prepared. Having all your documents in order shows providers that you’re a serious and organized business owner. While requirements vary, you’ll generally need to provide:

A government-issued ID
A voided check or bank letter
Your business license
Recent bank statements
Your processing history from previous providers
Your EIN (Employer Identification Number)
A fully functional website with clear privacy and refund policies

Having these items ready will speed up underwriting and increase your chances of getting approved quickly.

Maintain a Good Relationship With Your Provider

Think of your relationship with your high-risk payment provider as a partnership, not just a service agreement. In a high-risk industry, your processor is one of your most important allies. They’ve taken a calculated risk on your business, and building a strong, trusting relationship is key to long-term success for both of you. A healthy partnership is built on transparency, proactive communication, and a shared commitment to security and compliance.

When your provider sees you as a responsible and engaged merchant, they’re more likely to advocate for you, offer better terms, and provide support when you need it most. Neglecting this relationship can lead to misunderstandings, stricter terms, or even account termination. By actively managing your account and keeping the lines of communication open, you can ensure your payment processing remains smooth and stable, allowing you to focus on growing your business.

Communicate Clearly and Often

Open and honest communication is the foundation of your partnership. From the very beginning, be transparent about your business model, your products or services, and your expected transaction volume. If you plan to run a big promotion that will cause a spike in sales, give your provider a heads-up. This prevents your sudden increase in volume from being flagged as suspicious activity.

Likewise, you should expect clear communication in return. A good provider will offer transparent pricing and be available to answer your questions. Don’t be afraid to reach out to your account manager regularly to discuss your account performance, ask for advice, or address potential issues before they become major problems. This proactive approach shows you’re a serious partner invested in a healthy, long-term relationship.

Stay on Top of Compliance

For any high-risk business, compliance is non-negotiable. Adhering to the Payment Card Industry Data Security Standard (PCI DSS) is the absolute baseline for protecting your customers’ payment information. Consistently following these guidelines shows your provider that you take security seriously and are committed to reducing risk.

Beyond PCI, stay informed about the specific regulations that apply to your industry. Your provider is a great resource here, but the ultimate responsibility is yours. Regularly conduct security audits and update your protocols to protect against new threats. Maintaining a strong compliance posture not only protects your business from fines and data breaches but also builds confidence with your payment processor, proving you’re a reliable and trustworthy merchant.

Keep Your Security Updated

Your security measures are a direct reflection of how well you manage risk. Beyond basic compliance, you should implement advanced fraud protection tools and regularly update your security protocols. When your provider sees that you have strong systems in place to prevent fraudulent transactions, it reassures them that their investment in your business is safe.

This proactive stance can also have a tangible impact on your account terms. For example, a provider holds a portion of your revenue in a rolling reserve to cover potential chargebacks. By demonstrating a commitment to security and keeping your fraud rates low, you may be able to negotiate a lower reserve percentage over time. It’s a clear signal that you’re a low-maintenance, high-quality partner.

Monitor Your Transactions

Don’t just set up your payment processing and forget about it. You need to actively monitor your transactions to spot irregularities and potential fraud. Keep a close eye on your daily sales volume, average ticket size, and especially your chargeback ratio. Many payment gateways offer dashboards and alerts that make this process much easier.

Catching suspicious activity early allows you to address it before it turns into a costly chargeback. For example, if you notice multiple failed transactions from the same IP address, you can block it. This vigilance shows your provider that you’re an active participant in risk management. It proves you’re not just relying on them to protect your account; you’re doing your part to prevent chargebacks and maintain a healthy processing history.

Keep Your Account in Good Standing

Ultimately, the goal of all these practices is to keep your merchant account in excellent standing. This means keeping your chargeback ratio low, maintaining compliance, and avoiding any activity that could land you on the Terminated Merchant File (TMF), also known as the MATCH list. Getting placed on this list can make it nearly impossible to secure another merchant account for years.

Think of your relationship with your provider as a credit score for your business. By communicating openly, managing risk effectively, and following the rules, you build a positive history. This not only keeps your current account secure but also gives you more leverage and better options in the future. A good reputation is your most valuable asset in the high-risk processing world.

Frequently Asked Questions

If I get turned down by one high-risk provider, does that hurt my chances with others? Not at all. Getting a “no” from one provider doesn’t mean you’re blacklisted. Every processor has its own unique set of underwriting rules and relationships with different banks. One provider might be hesitant about your specific industry, while another might specialize in it. The key is to learn from the rejection. Ask for feedback if possible, and use it to strengthen your application before you approach the next provider.

Can my business ever stop being considered high-risk? It’s possible, but it’s a long-term goal. To transition from high-risk to a standard account, you’ll need to build a solid track record over several years. This means maintaining a very low chargeback ratio, showing consistent processing volume, and demonstrating financial stability. Think of it as graduating. Once you prove you’re a low-risk partner, you can certainly approach standard processors to see if you qualify for better rates.

What’s the single biggest mistake to avoid when applying for a high-risk account? The biggest mistake is a lack of preparation and transparency. Don’t submit an incomplete application or try to hide details about your business model. Underwriters are trained to spot inconsistencies, and it’s a major red flag. Be upfront about what you sell and how you operate. Having all your documentation ready, like bank statements and a clear website with your policies, shows you’re a serious and organized business owner, which greatly improves your chances of approval.

You mentioned a rolling reserve. Will I actually get that money back? Yes, you will. Think of the rolling reserve as a temporary security deposit. The processor holds a small percentage of your sales for a set period, usually around six months, to cover any potential chargebacks. After that initial holding period ends, the funds are released back to you on a “rolling” basis. So, as new funds enter the reserve, the oldest funds are paid out to you, ensuring you get everything back as long as your account remains in good standing.

Besides higher fees, what’s the main difference in day-to-day operations with a high-risk account? For your customers, the checkout experience is exactly the same. The main difference is on your end. You’ll need to be more hands-on with monitoring your transactions and chargeback ratio. A standard business might check their numbers once a week, but you’ll want to keep a closer eye on things. This proactive approach helps you spot potential issues early and maintain the healthy partnership with your provider that is so crucial for long-term success.

6 Best High-Risk Merchant Service Providers You Should Know