What is a high risk merchant account?
A merchant account is the bank account that lets your business accept card payments. When your business is in a category banks see as risky — because of chargebacks, regulation, billing model or reputation — you need a high risk merchant account from an acquiring bank that specialises in that risk.
Payment aggregators often onboard everyone instantly, then review accounts later. High risk businesses are frequently caught out by this, losing access to funds without warning. A dedicated merchant account is reviewed before you go live, so the bank knows exactly what it's approving.
What affects your pricing and terms
High risk merchant accounts are priced on your risk profile. Banks look at your industry, chargeback history, average ticket size, monthly volume, where your customers are and how long you've been processing. Strong history and clear policies generally lead to better rates and lower reserves.
Rolling reserves
Some banks hold a percentage of daily sales for a set period before releasing it. This rolling reserve protects against future refunds and chargebacks. Terms vary, and they can often be reduced as you build a clean processing record.
Chargeback thresholds
Card networks start monitoring merchants whose disputes approach roughly 1% of transactions. Going over can mean fines or closure, so chargeback prevention is part of every account we help set up.
How to improve your chances of approval
Have a professional website with visible contact details, terms, refund and shipping policies. Keep recent bank and processing statements ready. Be upfront about past closures — banks find out anyway, and honesty helps us match you with the right one.