High-Risk Merchants: A Complete Guide

For any business, payment processing is the engine that keeps everything running. But for high risk merchants, that engine requires specialized fuel and maintenance. A standard payment gateway often isn’t equipped to handle the unique pressures of your industry, leaving you vulnerable to sudden account freezes, crippling chargeback fees, and revenue loss. Building a secure financial infrastructure is non-negotiable. It’s about finding a partner who provides the right tools, understands your industry’s regulations, and offers the support you need to grow without interruption. This article will walk you through the essential components of a solid payment setup designed for the specific needs of high-risk businesses.

Key Takeaways

Partner with a High-Risk Specialist: Being labeled high-risk simply means you need a payment processor who understands your industry’s specific challenges. A specialized partner provides the tailored security, compliance guidance, and stable processing that traditional banks often can’t.
Build a Strong Defense Against Fraud and Chargebacks: Don’t just react to problems—prevent them. Use advanced fraud detection tools, maintain excellent customer service, and create clear policies to resolve issues before they become costly chargebacks that jeopardize your account.
Prioritize Transparency and Financial Discipline: A successful partnership with your processor is built on trust. Be upfront during the application process, maintain healthy cash reserves to handle higher fees and potential rolling reserves, and keep meticulous records to prove your business is stable and reliable.

What Is a High-Risk Merchant?

If you’ve been labeled a “high-risk merchant,” it simply means that banks and payment processors see your business as having a greater potential for issues like fraud or customer disputes. It’s not a reflection of your business’s quality or legitimacy. Instead, it’s a classification based on statistical risk factors associated with your industry or business model. Think of it from the processor’s perspective: certain types of businesses are more likely to face chargebacks, where a customer disputes a charge and the transaction is reversed.

Because of this increased risk, a high-risk merchant account comes with stricter terms and often higher fees than a standard account. This is the processor’s way of protecting themselves from potential financial losses. While it might feel like a hurdle, understanding why you’re in this category is the first step to finding a payment solution that’s built to support your business, not hold it back. It’s about finding a partner who understands the nuances of your industry and can provide the secure, reliable processing you need to grow.

Common Risk Factors

Payment processors look at several key factors when assessing risk. It’s less about your specific business and more about patterns they’ve seen across entire industries. Your business might be flagged if it has a history of frequent chargebacks, as this signals customer dissatisfaction or potential fraud. Selling internationally, especially in regions with higher fraud rates, also adds to your risk profile. Other common triggers include having a subscription-based model where recurring payments can lead to disputes, a history of poor personal or business credit, or selling high-ticket items. Even your industry’s general reputation can play a major role in this classification.

Which Industries Are Considered High-Risk?

Certain industries are almost automatically placed in the high-risk category due to their business models and historical data on chargebacks and fraud. If you operate in one of these sectors, you’ll likely need a specialized merchant account from the start. These industries include travel and tourism, gambling, and adult entertainment. Others on the list are businesses selling health supplements, tobacco or vape products, and cryptocurrency. Even some e-commerce stores, particularly those selling expensive electronics or jewelry, fall into this category. Financial services like debt collection, certain legal services, and telemarketing are also consistently classified as high-risk by payment processors.

How Transaction Volume Plays a Role

It’s not just what you sell, but how much you sell it for. Both your average transaction value and your total monthly processing volume are scrutinized by payment providers. A business that sells high-ticket items, like luxury goods or specialized equipment, is often considered high-risk. Why? Because a single fraudulent transaction or chargeback represents a much larger financial loss for the processor. For example, a disputed $2,000 sale is a bigger problem than a disputed $20 sale. This is why processors carefully evaluate your transaction value and may set processing limits or require additional security measures to mitigate their potential losses.

Common High-Risk Industries and Their Hurdles

Certain business models face more scrutiny from payment processors right from the start. If your business operates in one of these sectors, you’ve likely already run into some obstacles with traditional financial institutions. These industries are often flagged due to higher-than-average chargeback rates, complex regulations, or reputational concerns that make standard processors nervous. Understanding the specific hurdles your industry faces is the first step toward finding a payment solution that’s built to handle them. Let’s look at some of the most common high-risk categories and the unique challenges they present.

Financial and Digital Services

If you sell intangible products or services, you’re often placed in the high-risk category. This includes businesses like credit repair, multi-level marketing (MLM), and even SEO agencies. The primary hurdle here is the subjective nature of the service. A customer might dispute a charge simply because they weren’t satisfied with the results, leading to a higher volume of chargebacks. Because there’s no physical product to track, proving service delivery can be difficult. Processors see this ambiguity as a significant financial risk, making it essential to partner with a provider who understands the nuances of digital service businesses.

Travel and Subscription Models

The travel industry deals with high-ticket transactions and long lead times between payment and service delivery—a perfect storm for payment disputes. A customer might book a flight or hotel months in advance, leaving a wide window for cancellations and chargebacks. Similarly, subscription-based businesses are considered high-risk because of recurring billing. Customers can forget they signed up or become dissatisfied over time, leading them to dispute a charge rather than follow the proper cancellation process. This consistent potential for chargebacks makes many standard processors wary.

Health and Wellness

The health and wellness space, particularly businesses selling supplements, nutraceuticals, or CBD products, operates under a microscope. This industry faces intense regulatory oversight and a high risk of customer disputes related to product effectiveness. If a supplement doesn’t deliver the promised results, a customer is likely to request a refund or file a chargeback. The legal and health-related complexities mean that traditional payment processors often refuse to work with these merchants. Finding a processor who is well-versed in the specific compliance requirements for this industry is crucial for long-term stability.

Gaming and Entertainment

Online gaming, casinos, and other digital entertainment platforms are classic examples of high-risk industries. These businesses often handle a massive volume of international transactions, which automatically increases the potential for fraud. The global customer base also introduces complex legal and regulatory challenges that vary from country to country. Furthermore, the fast-paced, high-frequency nature of transactions in gaming can make it difficult to distinguish legitimate purchases from fraudulent ones. This environment requires robust fraud detection tools and a payment gateway capable of handling cross-border payments securely and efficiently.

Adult Content and Dating

The adult entertainment and online dating industries are almost universally classified as high-risk. This is primarily due to high chargeback rates, often stemming from the discreet nature of the purchases and subscription-based models. Some customers may file chargebacks due to buyer’s remorse or to hide the transaction, a phenomenon known as friendly fraud. Beyond chargebacks, there’s also a reputational risk factor that makes mainstream financial institutions hesitant to provide services. Businesses in this space need a specialized payment processor that offers discretion, security, and powerful chargeback prevention tools.

What You Need for Payment Processing

Getting your payment processing set up is one of the most critical steps for any business, but for a high-risk merchant, the stakes are even higher. It’s not just about finding a way to accept credit cards; it’s about building a secure, reliable, and compliant financial infrastructure that can support your business as it grows. The right setup protects you from fraud, keeps your customer data safe, and ensures your revenue stream remains stable and uninterrupted. Without it, you risk facing everything from crippling chargebacks to having your account suddenly shut down.

Think of your payment processing system as the heart of your business operations. It needs to be strong enough to handle the unique pressures of your industry. This means partnering with a processor that understands your specific risks and has the tools to manage them effectively. To get started, you’ll need to understand a few key components that form the foundation of any solid high-risk payment solution. This includes securing the right type of merchant account, preparing for global sales by accepting multiple currencies, understanding financial safeguards like rolling reserves, and committing to strict security standards. Let’s walk through what each of these entails.

Payment Gateway Essentials

First things first, you need a specialized bank account designed for businesses that traditional banks consider risky. A high-risk merchant account is a specific type of account that allows you to process online and credit card payments, even when there’s a higher chance of chargebacks or fraud. This account is your financial hub.

The payment gateway is the technology that securely connects your website’s checkout page to your merchant account and the payment networks. It encrypts sensitive customer data, like credit card numbers, ensuring it’s transmitted safely for authorization. For high-risk industries, a gateway with advanced fraud detection tools is not just a nice-to-have—it’s an absolute must for protecting your revenue.

Accepting Multiple Currencies

Many high-risk businesses operate on a global scale, serving customers from all over the world. If that sounds like you, then accepting multiple currencies is essential for growth. Forcing international customers to pay in a foreign currency can lead to confusion, higher bank fees on their end, and ultimately, abandoned carts.

A key benefit of a high-risk merchant account is that it often makes it easier to sell to customers in different countries and accept their local currencies. By offering a seamless checkout experience where customers can pay in a currency they know and trust, you can significantly improve your conversion rates. This shows customers you value their business and helps you build a loyal international following.

Understanding Rolling Reserves

When you open a high-risk merchant account, your payment processor will likely require a rolling reserve. Don’t let this term intimidate you; it’s a standard practice in the industry. A rolling reserve is essentially a safety net where the processor holds back a small percentage of your daily or monthly revenue for a set period.

This fund is used to cover any potential losses from chargebacks or fraud. As one guide to high-risk accounts explains, merchants might have to set aside 5% to 10% of their monthly sales. While it can affect your immediate cash flow, a rolling reserve is what gives the processor the confidence to support your business. It’s a crucial part of the partnership that allows you to operate securely.

Meeting Transaction Security Standards

In the world of payment processing, security and compliance are non-negotiable. As a high-risk merchant, you are required to follow strict rules and regulations to protect customer data. The most important of these is the Payment Card Industry Data Security Standard (PCI DSS).

Adhering to PCI DSS requirements involves implementing a set of security controls to protect cardholder information. Failing to comply can have severe consequences, including hefty fines, legal trouble, or even losing your ability to accept card payments entirely. A reliable payment processor will provide guidance and tools to help you meet these standards, ensuring your business remains secure, compliant, and trustworthy in the eyes of your customers.

How to Manage Risk and Prevent Fraud

Operating in a high-risk industry doesn’t mean you have to be vulnerable to financial threats. In fact, the most successful high-risk businesses are the ones that master the art of proactive risk management. It’s about building a strong defense so you can focus on growth instead of constantly putting out fires. By implementing a few key strategies, you can protect your revenue, maintain a healthy relationship with your payment processor, and build a trustworthy brand.

Think of it as your business’s security system. You wouldn’t leave your doors unlocked, and you shouldn’t leave your payment processing exposed. A solid plan involves using the right tools to spot trouble before it starts, creating clear policies to handle customer disputes, verifying that your customers are who they say they are, and keeping a watchful eye on all your transactions. These four pillars work together to create a secure environment for your business to thrive. Let’s break down what you need to do to keep your operations safe and your payments flowing smoothly.

Essential Fraud Detection Tools

In the world of online payments, trying to catch fraud manually is like trying to catch rain in a thimble—you’ll miss most of it. That’s why you need to use advanced tools, often powered by machine learning, to spot and stop fraud in its tracks. These systems are designed to analyze thousands of data points in milliseconds, identifying suspicious patterns that a human would never notice.

Modern fraud detection platforms can check a customer’s IP address to see if it matches their billing location, analyze device fingerprints to flag a single person using multiple identities, and run velocity checks to see if a card is being used for an unusual number of transactions in a short time. Integrating these tools is one of the most effective steps you can take to protect your business from sophisticated fraudsters.

Strategies to Protect Against Chargebacks

Chargebacks are one of the biggest headaches for any high-risk merchant. They not only cost you the sale but also come with added fees and can damage your standing with payment processors. The best approach is to use tools and strategies to prevent and quickly deal with customer disputes before they escalate. Start by making sure your customer service is top-notch and easy to reach. A customer who can quickly resolve an issue with you is far less likely to file a chargeback.

It’s also crucial to dig into the “why” behind your chargebacks. Figure out why customers are asking for their money back—it could be due to misleading product descriptions, slow shipping, or an unclear billing descriptor on their statement. Fixing these root problems is a core part of any effective chargeback prevention strategy and will save you significant money and stress in the long run.

Methods for Customer Verification

A fundamental part of fraud prevention is simply making sure your customers are legitimate. You need robust methods to confirm that the person making a purchase is the authorized cardholder. This is where customer verification tools come into play. Simple but effective measures like the Address Verification Service (AVS), which checks if the billing address entered matches the one on file with the card issuer, can stop a significant amount of fraud.

You should also always require the CVV (the three- or four-digit code on the back of the card) for every transaction. For an even stronger layer of security, consider implementing 3D Secure technology, which requires customers to enter a password or a one-time code sent to their phone to complete a purchase. These verification steps create friction for fraudsters while providing a secure checkout experience for your real customers.

Why You Need Transaction Monitoring

Fraud prevention isn’t a “set it and forget it” task. You need to keep a close eye on all your sales to find anything unusual that might signal fraudulent activity. This means actively monitoring your transactions for red flags. Look for things like a sudden surge in orders from a specific region, multiple failed payment attempts followed by a successful one, or an unusually large number of orders placed from a single IP address using different credit cards.

Having a system in place to regularly check your transactions allows you to spot potential issues early and take action. This vigilance also prepares you to handle chargebacks and disputes fast. When you can provide clear evidence that you’ve been monitoring your accounts and have processes in place to verify transactions, you’ll be in a much stronger position to win a dispute and protect your revenue.

Staying on Top of Regulatory Compliance

Navigating the world of high-risk payments means playing by the rules—not just to avoid trouble, but to build a stable, trustworthy business. Compliance can feel like a maze of acronyms and paperwork, but it’s really about creating a secure environment for your transactions and your customers. Getting this right from the start saves you massive headaches down the road. Let’s walk through the key areas you need to focus on to keep your operations smooth and secure.

PCI DSS Requirements

Think of the Payment Card Industry Data Security Standard (PCI DSS) as the essential security checklist for handling card payments. Every single business that accepts, processes, stores, or transmits credit card information has to comply. For high-risk merchants, proving you meet these standards is absolutely non-negotiable. Failing to follow these rules can lead to steep fines, legal trouble, or even losing your ability to accept card payments entirely. Adhering to PCI DSS isn’t just about checking a box; it’s a fundamental way to protect your customers’ sensitive data and show payment processors that you take security seriously.

Industry-Specific Rules to Know

While PCI DSS is a universal requirement, it’s just the beginning. Compliance isn’t a one-size-fits-all game, especially in high-risk sectors. Each industry, from online gaming to travel to subscription services, has its own unique set of regulations. On top of that, every bank and payment processor has its own internal rules and standards for evaluating risk. This is why it’s so critical to understand the specific requirements that apply to your business niche. Working with a payment partner who specializes in high-risk industries can be a huge advantage, as they already know the landscape and can guide you through the specific rules you need to follow.

Keeping Your Documentation in Order

When you apply for a high-risk merchant account, be prepared to show your work. Providers will ask for detailed documentation to verify that your business is legitimate and well-managed. You’ll likely need to provide business licenses, recent financial statements, bank statements, your processing history, and a detailed business plan. Having all of this organized and ready to go makes the application process much smoother. It demonstrates transparency and professionalism, signaling to the processor that you’re a serious business owner who runs a tight ship. This can make all the difference in getting your account approved quickly.

Best Practices for Financial Records

Strong compliance is an ongoing practice, not a one-time task. Maintaining clean, accurate, and detailed financial records is crucial for the long-term health of your business. This means using secure technology for your accounting and conducting regular checks to ensure you’re following all the rules. Keeping a clear record of your transactions and business activities helps you spot potential issues before they become major problems. This proactive approach not only keeps you organized but also proves to your payment partners that you are a reliable merchant committed to operating with integrity, which is essential for building lasting relationships.

How to Secure Your High-Risk Merchant Account

Getting approved for a high-risk merchant account can feel like a big hurdle, but it’s completely achievable with the right preparation. Unlike standard accounts, the underwriting process for high-risk businesses is much more thorough. Payment processors need to dig deeper into your business operations, financial history, and risk management strategies to ensure a stable partnership. This isn’t meant to be difficult; it’s about building a foundation of trust. The processor is taking on a greater financial risk by partnering with you, so they need to see that you have a solid, legitimate business with practices in place to minimize issues like chargebacks and fraud.

Think of it less as an interrogation and more as a detailed business review. By understanding what processors are looking for, you can gather your information, present your business professionally, and find a partner who truly understands your industry’s unique challenges. The key is to be transparent, organized, and proactive. Having everything in order before you even start the application will make the process smoother and show potential processors that you’re a serious and reliable merchant. This section will walk you through exactly what you need to do, from gathering your documents to understanding the fine print in your contract.

The Application Process, Step-by-Step

The application for a high-risk account is more detailed than for a low-risk one. Processors will ask for in-depth information about your business history, your sales volume, and even your personal credit. This is because they need a complete picture of the potential risk involved. The underwriting team will carefully review every piece of information to assess your business’s stability and legitimacy. Be prepared for a process that takes a bit more time and patience. Honesty and thoroughness are your best allies here. Providing clear, accurate information from the start helps build trust and can speed up the approval timeline significantly.

Documents You’ll Need to Apply

To streamline your application, it’s smart to get your paperwork in order ahead of time. Processors will want to see a comprehensive view of your business’s financial health and legal standing. You should be ready to provide key items like your business licenses, recent financial statements, and a clear business plan. It’s also standard to be asked for several months of bank statements—usually up to six—and a few years of tax returns. Having these documents organized and ready to go shows that you’re a professional and helps the underwriting team process your application more efficiently.

Choosing the Right Payment Processor

Not all payment processors are equipped to handle high-risk industries. It’s crucial to find a provider that specializes in your field. These processors understand the specific challenges you face, from regulatory hurdles to higher chargeback potential. When comparing options, look for a partner with proven industry experience, transparent fee structures, and strong security measures. Don’t forget to check their reputation and customer support quality. A good partner, like Borderfree Payments, will offer tailored solutions and guidance to help your business thrive, not just survive. They should feel like an extension of your team.

Understanding Fees and Contract Terms

It’s no secret that high-risk merchant accounts come with higher fees. Processors charge more to offset the increased financial risk they’re taking on. You can expect transaction rates to be higher than standard accounts, often ranging from 3% to 10%. Beyond transaction fees, pay close attention to the contract terms. High-risk agreements often have longer terms, sometimes up to 36 months, and may include a rolling reserve or steep early termination fees. Read every line of your merchant agreement carefully before signing. Understanding all the potential costs and commitments upfront will prevent surprises down the road.

Build a Sustainable High-Risk Business

Securing a high-risk merchant account is a major milestone, but the work doesn’t stop there. The next step is to build a business that can thrive for the long haul. This requires a proactive strategy that goes beyond simply processing payments. A sustainable high-risk business is built on a foundation of smart planning, strong customer relationships, and disciplined financial management. It’s about turning potential liabilities into strengths.

While your payment processor provides the tools to accept payments, it’s your internal operations that will determine your long-term success. By focusing on a few key areas, you can create a resilient business that not only survives but also grows within its industry. This means creating a clear plan to handle risks, finding smart ways to increase your revenue, earning your customers’ trust, and keeping your finances in order. Let’s walk through how to put these pillars in place.

Create a Risk Management Plan

A formal risk management plan is your playbook for handling the challenges of your industry. This plan should outline how you’ll manage potential threats like fraud, chargebacks, and regulatory changes. A critical piece of this is compliance. High-risk merchants must adhere to strict standards, such as the Payment Card Industry Data Security Standard (PCI DSS), which governs how you handle cardholder data. Failing to follow these rules can lead to serious consequences, including steep fines, legal trouble, or even losing your ability to accept card payments altogether. Your plan should document your processes for staying compliant and secure.

Find Ways to Optimize Revenue

Operating as a high-risk business isn’t just about managing downsides; it also presents unique opportunities for growth. A high-risk merchant account can be a gateway to a broader market, allowing you to reach more customers, especially through international sales. Many specialized processors also provide sophisticated fraud prevention tools that protect your bottom line while you expand. These accounts often use a rolling reserve to provide a safety net for potential chargebacks, which can help create more predictable cash flow and protect your business from sudden financial shocks.

How to Build Customer Trust

One of the most effective ways to reduce risk is to build strong, trusting relationships with your customers. Happy customers are far less likely to initiate chargebacks. You can foster this trust by being transparent and reliable in every interaction. Provide clear and accurate product descriptions, set realistic expectations for shipping, and make your return policy easy to find and understand. Excellent customer support is also key—responding quickly and helpfully to questions or concerns can resolve issues before they escalate into disputes. This not only reduces chargebacks but also encourages customer loyalty and repeat business.

Steps to Ensure Financial Stability

Financial discipline is essential for any high-risk business. You’ll face higher processing fees and more significant chargeback penalties, which can range from $20 to $100 per incident. It’s crucial to factor these costs into your budget and pricing model from the start. Maintaining healthy cash reserves in your bank account is also vital. This demonstrates to your payment processor that your business is financially stable and capable of covering potential losses, making you a more attractive and reliable partner. Proactively managing your cash flow ensures you can handle these higher costs without disrupting your operations.

Best Practices for Lasting Success

Getting approved for a high-risk merchant account is a huge step, but the work doesn’t stop there. To build a sustainable business, you need to be a reliable partner for your payment processor. This means actively managing your risk, maintaining financial health, and keeping your operations clean. Think of these practices not as restrictions, but as the foundation for long-term growth and stability. By showing your processor that you’re a responsible merchant, you build the trust needed for a lasting partnership and ensure your payment processing remains uninterrupted. Let’s walk through the key habits that will set you up for success.

Maintain Transparent Operations

Honesty is always the best policy, especially when it comes to your merchant account. During the application process, be completely open and provide all the information your payment processor requests. Hiding details about your business model or sales history might seem like a shortcut, but it almost always backfires and can lead to a denied application or a terminated account down the road. Transparency builds a foundation of trust with your payment partner. They need a clear picture of your business to support you effectively, so give them the full story from day one. This openness should continue even after you’re approved. If you plan to change your business model or introduce new products, keep your processor in the loop.

Manage Your Cash Flow Effectively

Your financial stability is a key indicator of your business’s health. Processors want to see that you can handle the ups and downs of a high-risk industry, so maintaining a healthy cash reserve in your bank account is crucial. You should also be prepared for a rolling reserve, where your processor holds a small percentage of your sales (typically 5% to 10%) for a set period. This fund acts as a security deposit to cover potential losses from chargebacks or fraud. While it can impact your immediate cash flow, understanding and planning for it will keep your finances on solid ground and demonstrate your financial responsibility to your payment partner.

Implement Strong Security Measures

In a high-risk industry, you can’t afford to be passive about security. Proactively protecting your business from fraud is non-negotiable. This means using advanced tools that can spot and stop suspicious activity before it causes damage. Many high-risk payment processors offer built-in fraud detection suites that use machine learning to identify fraudulent patterns. By implementing robust security measures like Address Verification Systems (AVS), CVV checks, and 3D Secure, you not only protect your revenue but also show your processor that you are serious about minimizing risk for everyone involved. These tools are your first line of defense in a landscape where threats are constantly evolving.

Keep Your Chargeback Rate Low

Chargebacks are a major red flag for processors and can quickly put your merchant account in jeopardy. It’s your job to figure out why customers are initiating disputes and fix the root cause. Are your product descriptions misleading? Is your shipping too slow? Are you making it easy for customers to request a refund? Dig into the data and address these issues head-on. With chargeback fees ranging from $20 to $100 per incident, the costs add up quickly. By focusing on clear communication, excellent customer service, and transparent billing descriptors, you can reduce chargebacks and keep your account in good standing.

Frequently Asked Questions

Is being labeled ‘high-risk‘ a bad thing for my business? Not at all. Think of it as a category, not a judgment. This label simply means your industry has a statistically higher chance of facing things like customer disputes or fraud. It’s a classification that helps payment processors understand what kind of support you need. The most successful businesses in these industries don’t see it as a setback; they see it as a reason to partner with a specialized processor who understands their world and has the right tools to help them succeed.

Why does my processor require a rolling reserve, and will I get that money back? A rolling reserve is like a security deposit. Because your business is in a higher-risk category, the processor holds a small percentage of your revenue for a short period to cover any potential losses from chargebacks. It’s a standard practice that gives them the confidence to support your account. And yes, that money is still yours. The funds are released back to you on a rolling basis after the agreed-upon holding period passes, assuming there are no major issues.

The application process seems intense. What’s the most important thing I can do to get approved? The single most important thing you can do is be transparent and organized. Underwriters for high-risk accounts need to see the full picture of your business to feel confident in partnering with you. Have all your documents—like bank statements, business licenses, and processing history—ready to go. Be completely honest about your business model and sales volume. A processor would much rather work with an honest business that has a few challenges than one that hides information.

Are the higher fees for a high-risk account actually worth it? While nobody loves higher fees, they are absolutely worth it for the stability they provide. Trying to use a standard, low-risk processor might seem cheaper at first, but they could shut down your account with little to no warning at the first sign of trouble, freezing your funds and crippling your operations. The higher fees for a specialized account are an investment in security, advanced fraud protection, and a partnership with a provider who won’t drop you when you need them most.

Besides obvious fraud, what causes chargebacks and how can I prevent them? Many chargebacks come from simple misunderstandings or poor communication, not criminal fraud. A common cause is an unclear billing descriptor—if a customer doesn’t recognize the charge on their statement, they might dispute it. Another major factor is customer service. If a customer can’t easily reach you to ask for a refund or resolve an issue, their next step is often to call their bank. You can prevent a huge number of these by providing excellent, accessible support and making sure your billing information is crystal clear.

High-Risk Merchant Accounts: The Ultimate Guide