Choosing the right PSP or acquiring bank for your high-risk merchant account is a real challenge to high-risk merchants. The business or the owner has a bad financial history. Fortunately, at Shark Processing, we specialize in high-risk payments and can assist you in opening a high-risk merchant account, no matter your industry. Electronic money processing. The quality that sets this company apart from its. You are incorporated in a low risk state. , subscription payment models, gambling sites). Low risk industries are generally those that have a low incidence of fraud and chargebacks, and as a result, they typically pay lower processing fees and have fewer restrictions on their accounts. Since high risk businesses are more likely to experience chargebacks, they have to pay higher fees for the merchant services. However, PaymentCloud also handles payment processing for medium- and low-risk businesses. You need a partner that truly understands your industry, provides transparent and competitive rates, and helps maximize your revenue potential. That said, business credit experts have identified low risk industries for business credit that have a higher level of “fundability. Where such a high-risk account is involved, banks tend to be hostile, and such industries are almost completely barred from opening accounts. A high-risk merchant account is a merchant account created by a payment processor and assigned to a high-risk business. There are several criteria to determine the risk level of a business: high transaction volume, international payment (geographic location. As one of the most trusted merchant account providers available, Payment Cloud has serviced hundreds of popular high-risk merchants. If the average ticket is less than $500. To define a low-risk merchant account, it’s important to look at the common characteristics of these accounts. , those with both physical and digital storefronts), Moonlight addresses the unique challenges faced by businesses in sectors like. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. Has consistent revenue streams all year round. io’s list of merchant services includes: Full-service merchant accounts;Low risk merchant accounts are merchants running their business with minimal to no chargebacks and have a solid financial history. various factors collectively decide the risk category for a particular business. Low Risk Merchant Accounts. With its expertise in high-risk merchant accounts, tailored payment processing options, competitive pricing, and excellent customer support, HMS is well-equipped to help CBD merchants efficiently and effectively process credit card payments. Low-Risk Merchant Accounts. It is best to find a high-risk processor who understands the needs of businesses with bad credit. SSL and PCI. Get access to deeply-discounted interchange rates to keep your payment processing costs as low as possible. Again, it all comes back to that one word: risk. If a high risk business tries to get a low risk payment processor, there is a high chance of getting the account terminated at any time. High-risk merchant accounts are payment processing accounts geared to businesses operating in high-risk industries and more prone to chargebacks, fraud, regulatory hurdles, and legal issues. SMB Global provides a merchant account to high-risk businesses. This label is often due to the. Define your project needs. These risks could range from a high likelihood of chargebacks and fraud to legal. In general, you are likely to receive approval for a traditional merchant account if your industry, products or services, sales methods, location, and customers present little risk to the acquirer or processor. Merchant accounts essentially serve as a holding account to protect banks and payment processors so they don’t get burned by fraud or chargebacks. High-risk payment gateway Europe is a payment gateway designed to facilitate high-risk transactions for merchants and customers in the European Union. Staying on top of any requests for supporting documents. The reason is simple: Everyone in the payment chain (except for the customer) loses money in a chargeback. We provide merchant account services for both low and high-risk businesses. Ultimately, this results in downtime while they resolve the issue. 78 out of 5. Skip to content (877) 996-2795; Merchant Accounts; ABOUT. Online merchants, in the eyes of acquirer banks, are divided into 3 categories: high, Easy Pay Direct is a payment gateway and merchant account provider that serves a wide variety of high-risk and low-risk industries. net is a payment gateway solution from Visa. io can offer merchant account approval for most low-risk businesses in about a day. This is why eMerchant offers same-day approval for low-risk merchant accounts. Dharma’s monthly fee is $20 per month. Low-risk merchant account suppliers are also available along with high-risk merchant account providers. Applying for Your Merchant Account. Some stand out for accommodating high-risk merchants, while others sell a variety of POS systems and card readers, or integrate with popular business apps. Your merchant account provider will send the transaction details through its backend processor to the customer’s card issuer . Stripe. Low-Risk Merchant Accounts. Read our Review. Square: Best Free Merchant Account For Small Businesses. In order to be considered low-risk by underwriters, your business needs to meet the following criteria: Your business processes lower volume. Payment Gateway Only. 9% + 30¢ online. In order to apply for a high-risk merchant A business that accepts credit cards for goods or services. $25 monthly payment gateway fee. Businesses That Typically Apply For Low-Risk Merchant Accounts An online apparel store is an excellent example of a business that could be considered for a low-risk merchant account. For instance, one of the disadvantages is the fact that it might take longer to obtain one than it would in the case of a low-risk merchant account. Our team of expert advisors is on call 24/7 to help you get set. Typically, monthly fees range from $10 to $50. but merchants need to read the fine print: this service comes at a price. Even low-risk merchant account fees vary widely. Based in France, Corepay has recently expanded its reach to the US. Do I have to buy new equipment in order to process with Goat Payments? No, absolutely not! As a matter of fact, GMS prides itself on having never leased even one credit card terminal. Unlock the Benefits of a Low-Risk Merchant Account for Seamless Transactions. A reserve, in simple terms, is a security deposit for the acquiring bank, and its goal is to protect them from potential risks associated with your merchant account. Many acquiring banks in the US consider merchants looking for offshore merchant accounts as high-risk clients. Low-risk rates, as low as $99 per month and $. ”. 20. Some of the most common businesses the platform specializes in include health and beauty, fantasy sports, financial and legal services, firearms, travel, tobacco and vape, SaaS, and SEO/SEM businesses. The Best Merchant Account Services. Simply keep in mind that we determine our rates based on your monthly processing volume as well as your individual business’s risk factor, but our rates can start as low as 6. Fees are the main tangible difference between a high and low risk merchant account. There are two main types of merchant accounts: a general purpose and a specialized merchant account. Processes less than $20,000 monthly. PayPal – Best for a pay-as-you-go pricing structure. Reason being, merchants in our payment processing world come under low-risk, medium-risk, and high-risk categories. A low volume of transactions, just under $20,000 each month. This includes the merchant, the credit card company, and the bank that issues and finances the card. High-risk businesses are also more likely to have returns, refunds, and chargebacks. net is a payment gateway company that provides payment processing options for businesses, especially small and independently-owned businesses. Even low-risk merchant account fees vary widely. Luckily, while the process to get one is a little more complicated, there are many benefits to a high-risk merchant account. 6% plus 10 cents, while the fee for a high-risk account might be 2. Some of these include: 541990 - All Other Professional, Scientific, and Technical Services. High risk merchant accounts are the hardest ones to get and the most costly. in high-risk categories do so with the confidence that the reward will offset the extra hassle and expense of a high-risk merchant account. The primary differences include the following: High-risk merchant accounts usually require a much more extensive underwriting process before the account can be approved and you can begin accepting credit/debit card payments Corepay is a newly established merchant account provider that accepts both low-risk and high-risk merchants. High-Risk vs Low-Risk Merchant Accounts. CorePay. The increased financial risk can make financial institutions hesitant to work with your high-ticket business. But you don’t have to worry as eMerchant Authority has a. High Risk Merchant Accounts. They will need a high-risk merchant account because the credit repair industry presents several risks: (1) clients and their financial history (2) chargebacks, and (3) legality. Interchange + 0. These include reduced fees and less of a need. Merchant services companies lose money on chargebacks. They may have a less stable financial environment by. SMB Global. The first thing most merchants will notice is higher fees. As such, the primary factors that matter with a high-risk merchant account are processing history and industry reputation. Once we have placed your business with a suitable high-risk banking partner, we will work with you to. Step 1 — the first step of the merchant account process involves a transaction made by the customer. If the business has low to zero chargebacks. Durango Merchant Services: Best for eCommerce merchants. But not all accounts are the same — some are considered low risk and others are high risk. While the vaping/e-cigarette industry is highly profitable, banks and credit card processors also consider it high-risk. A merchant account may be classified as low-risk due to one or more of the following factors: If the average monthly transaction volume is less than $20,000. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. You’re in an industry that is considered “High Risk”; you are in eCommerce, you run high dollar transactions, your transactions happen in the future, you have poor credit or maybe someone closed your merchant account in the past - now you need a high risk merchant account. 2. This can rage anywhere from 5-20%. A new business may have to rely on high-risk merchant account services until it has enough history to qualify for a traditional low-risk merchant account. However, for business owners looking for the best high-risk merchant accounts with bad credit, you might want to consider Electronic Cash Systems, PaymentCloud, Payment Depot, Durango Merchant Services, Soar Payments,. Additionally, a business with a heightened likelihood of fraud would be marked as high risk. Not only that, it also has acquired bank partnerships, skills and a good reputation to help your high risk business acquire a merchant account. High-risk merchant accounts are for businesses in high-risk industries that sell high-value products or services, have a history of frequent chargebacks, and have an. The terms of the contract may vary from provider to provider, but at the core of the agreement, they are covering their bases. Painless Business Funding; Painless Agent Program; Refer a Merchant; FAQ; Contact Us; APPLY NOW; Search for: Search for: Low Risk Merchant Account Doug 2018-12-30T02:05:56+00:00. Higher set-up fees: High risk comes at a price and the price is that you pay more in setup fees. It can also include. In simple terms, a high-risk merchant account is a payment processing account for businesses considered as ‘high-risk’ by credit card processors or banks. You might get a rate of about 0. Level 3 processing is easy with the PayKings high risk payment gateway. If you are the owner of a small or medium business in online retail, games, IT, digital content or non-profit sector, then EU Merchant Account will help you open a special “Low/Medium Risk Merchant Account”. At Corepay, we frequently get merchants approved who have had their Paypal accounts terminated as we specialize in high-risk payment processing. Payline — Best for businesses looking for affordable interchange rates and who use Visa and Mastercard. While there are many other factors involved, a low-risk merchant typically experiences low chargeback ratios, low reputational risk, minimized returns and a predictable/low amount of. This is the fee that is charged for integrating the services to the merchant application. 30% + $0. These merchant accounts generally have higher chances of fraud and chargebacks. This gives many merchants the opportunity to fix problems from previous processing partnerships and work towards a low-risk merchant account. unique tool that allows you to efficiently process payments online. The third main difference is that a high risk merchant account has an average credit card transaction of over $500 while a low risk account has an average credit card transaction of less than $500. Per standard industry practice, payment. Apply for the necessary business. Best merchant services in 2023. You are incorporated in a low risk state. Laundering payments through a low-risk merchant account allows maximum proceeds while avoiding regulatory limitations. Call us 888-334-2284 or email us at sales@signaturepayments. Albeit new to the industry, CorePay has effectively worked with countless merchants by providing polished merchant account services that put safety, security, and efficiency. It supports businesses of all sizes, offering both standard flat-rate and interchange plus pricing. Usually offers tiered pricing to bad credit merchants. For example, ecommerce brands can expect to pay 4% per transaction while dating sites are looking at 6% and IT support 10%. Typically, a merchant account for credit repair is used for credit card processing and eCheck processing but can be used for a variety of payment processing needs. - Provides full service merchant accounts for high risk and non-high risk merchants. high risk merchant accounts is the amount of fees. A high-risk merchant account has never been easier to attain thanks to Payment Savvy. It allows merchants to accept customer payments in any currency, including Euros, Sterling, Dollars, and other major. As your Store starts to get hit with chargebacks, your fees significantly increase and can get your merchant account frozen or terminated, especially when working with low-risk processors such as Shopify Payments/Stripe. High-risk merchant accounts attract more stringent conditionalities than regular merchant accounts and are more expensive to manage. If the business accepts only one type of currency. Low-Risk Merchant Accounts Differences in Processing, Fees, and Restrictions. In the world of merchants, the ability to process credit card transactions is vital to the survival of your business. eMerchant Authority’s Online Gaming Merchant Options. The biggest, and most obvious, difference between a traditional merchant account and a high risk merchant account is the risk level they accept for their services. To qualify for low risk merchant accounts, your business will fit the following description: You process less than $20,000 per month Your average ticket size is less than $50 Zero to. Although obtaining such an account can be difficult and has disadvantages, it can provide a lifeline for such businesses. Additionally, if. You will need to either find another way to accept. In addition to the risk being more minimal than that of its high risk counterpart, a low risk merchant category is one that encompasses any business that. The following are. Transaction processing rates are notably higher than the company’s low-risk rates, but the lack of account fees makes it a great alternative to getting a traditional high-risk merchant account. Corepay provides European merchant accounts for businesses globally. 05 per transaction. In Summary: 5 Best Bad Credit Merchant Account Providers. High-risk businesses are charged greater processing fees than low-risk enterprises to determine the interchange cost they will pay. Additional fees: Additional fees include PCI compliance, account setup, statement generation, and customer support. All according to this analysis your application is either. High risk merchant account fees. low-risk merchantsBelow are the distinctions between a low-risk merchant account against a high-risk merchant account. The high risk gateway services. Companies like Shark Processing help merchants expand their reach globally and tap into new markets, offering convenient payment options to customers worldwide. If you opt to use Square for online sales, you can expect to pay a higher rate of 2. 3. These businesses often operate in industries that, for various reasons, carry a higher level of risk. High-risk vs. Easy Pay Direct is a payment gateway and merchant account provider that serves a wide variety of high-risk and low-risk industries. High-Risk vs. Click to get a free quote or call our experts at 888-302-8472. When you call or email, you’ll always speak with our friendly, in-house client support team. Our team of experts is here to support you every step of the way. The second thing you need to know is the type of merchant account you’ll get with your application. While low-risk merchant accounts are typically short term (sometimes even month to month), high-risk merchant accounts often run between three to five years and feature automatic renewal clauses and early termination fees. The credit card transaction average is $500; Minimum returns;High Risk & Low Risk Merchant Accounts. 59% over interchange, while high risk rates. Low-risk Merchant Account. 7 billion in 2018 and are expected to reach $40 billion by 2023. $25 monthly payment gateway fee. It is important to keep in mind that fees for a credit merchant account typically are. Low-Risk Merchant Account There are a few differences between a low-risk merchant and a high-risk merchant in the eyes of a payment processor. SMB Global is a self-described "one-stop shop" for payment processing. Running high-risk sales on your lower-risk merchant account will often result in funds being held. In order to process those credit card transactions though, you need a low risk merchant account with an acquiring bank. 3. Stripe: Best Online Processor. Industries labeled low risk have. Have a zero to low chargeback ratio. National Processing: Best for Small Businesses 6. High-risk merchant account fees Setup Fees. Banks are wary of working with businesses that have a low credit score. 541611 - Administrative Management and General Management Consulting Services. Best for online and international sellers: Durango Merchant Services. A high risk payment processor should provide excellent service and competitive rates—but there are some negative aspects of high risk merchant accounts that are unavoidable. 5 Ways To Improve Your Chances Of Getting A High-Risk Merchant Account For. Prior applying for a merchant account, you must know if your business comes under low-risk. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. Typical reasons for this label is that your account is considered to be at a higher risk of fraud, chargebacks, or a high number of returns. 30% + 10¢ per online and in-person transaction versus Clover’s 2. LOW RATES. Corepay is a domestic and offshore merchant account provider for both high-risk and low-risk businesses, advertising its services to the adult industry, CBD and hemp vendors, eCommerce merchants, online dating services, and other business categories considered high-risk. Dharma: Best for Transparent Pricing. A merchant account is a particular type of bank account that business owners must establish in order to accept payments. To define a low-risk merchant account, it’s important to look at the common characteristics of these accounts. Although obtaining such an account can be difficult and has disadvantages, it can provide a lifeline for such businesses. The E-COMMERCE BROKER company helps to register a merchant account for Visa, MasterCard, American Express, and for a number of other brands of plastic cards and payment wallets. In contrast to a low-risk merchant. PaymentCloud: Best For High-Risk eCommerce Businesses. Having a variety of payment options with optimal security is a must for successful online companies. Discount feeComparing Fees and Terms: High-Risk vs Low-Risk Merchant Accounts. various factors collectively decide the risk category for a particular business. Merchant One: Best for Flexible Pricing. To qualify for low risk merchant accounts, your business must: Process less than $20,000 per month, Have an average ticket size of less than $50, and. Call Us: (213) 267-6848. 95% per transaction on average plus a $0. If a high-risk business uses a low-risk merchant account, they may experience: Violation of terms; Increased scrutiny; Chargebacks and penalties; Legal consequences The Best Merchant Account Service Providers of 2023. Medium and Low Risk Merchant Accounts. High-risk Vs. A high risk merchant poses more of a financial risk to the processing company. To open, a business needs an EIN and valid business license. 95%. It also has a strong. , UK, Canada, Japan, Australia, Europe) Any country: Currency:Using a high-risk MCC can help you avoid some of the common problems that low-risk businesses face when they deal with high-risk transactions. High-Risk & Low-Risk Merchant Accounts: While Corepay can also place low-risk merchants, its specialty is in providing merchant services to businesses that are deemed to be in a high-risk category. To qualify for low risk merchant accounts, your business must: Process less than $20,000 per month, Have an average ticket size of less than $50, and. You may also end up paying for a long list of services such as PIN debit network fees, payment gateway fees, monthly account fees, and more. Low-risk Merchant Account. A competitive payment processing fee for a standard retail small-business account might be 2. However, you can also use the EPD Gateway with. Underwriting process: The payment processor conducts a thorough review of the business’s industry, financials, chargeback history, and other relevant factors to determine the risk level. Nov 19, 2023Learn more about what constitutes a low-risk merchant A business that accepts credit cards for goods or services. It nullifies the challenge and struggle of choosing the right high-risk merchant account or the right PSP. Excessive chargebacks are a prime reason why merchants are denied payment processing services. An online merchant is a business that sells goods and processes payments over the Internet. - Load balancing feature for high risk merchants. In contrast, high-risk merchant accounts require more effort to set up and incur higher fees than their low-risk counterparts. The truth is that it takes must time to get approved for a high-risk merchant account compared to the traditional merchant account. When it comes to merchant accounts, there are high-risk and low-risk businesses. Almost any high-risk industry can apply for a merchant account with SMB Global. There are certain fees business owners need to pay for merchant account services. Initially, you are required to pay the initial setup cost whether you are a high-risk merchant or a low-risk merchant. While the high-risk version is a bit expensive, it offers the merchant many. Just use the form above, and we will email you the quick set-up procedure right away. If you are a vaping merchant, you will need a. Now that you know more about merchant accounts, let’s take a closer look at the difference between high-risk and low-risk merchants. We have partnerships with over 25+ processors worldwide, and can place. High risk merchant account providers can make it possible to set up an account after a day or two. High-Risk VS Low-Risk Merchant AccountsLow-Risk Merchant Accounts. We like to think of. Low-risk merchant account. Luckily, while the process to get one is a little more complicated, there are many benefits to a high-risk merchant account. It exhibits a deep understanding of the intricate landscape of high-risk payment processing and presents solutions that go beyond conventional offerings. Low-risk merchant accounts are designed for businesses that have a consistent volume of sales, low returns/chargebacks, and are in well-established. It offers fast and easy. Not only do we have highly competitive rates, but we also provide 100% transparency and top-notch customer service. The standard process for acquiring a merchant account process is as follows: Choose a business structure for your new enterprise. Best for high-risk retail businesses. A merchant account is a reliable and fast way to receive money transfers from bank cards online, and this tool allows you to expand the. General characteristics of a low risk merchant account. To qualify for low risk merchant accounts, your business will fit the following description: You process less than $20,000 per month; Your average ticket size is less than $50; Zero to low chargeback ratio; You operate within a low risk industry; You are incorporated in a low risk country The Difference Between Low-Risk & High-Risk Merchants. It also involves continuous management of your payment processing solutions and making the appropriate adjustments along the way. Low-risk merchant accounts also have low chances of fraud and minimal sale amounts. A high-risk merchant account is a label your payment processor has given your business. For a high-risk merchant account instant approval, it is preferable to go for a service provider like PayCly which specializes in high-risk companies. Low-risk businesses are easier for merchant service providers to trust. Compared to a regular account, a high-risk merchant account will have the following. Low-Risk Merchant Definition. The main difference between high-risk and low-risk merchant accounts is the financial risk associated with each. Even though low-risk merchants also pay a chargeback charge (an expense you pay when a client disputes the charge directly using the credit card they use) However, high-risk merchants usually have higher charges for. Dharma’s processing rate for high-risk businesses is interchange rate + 1. e. Traditional merchant accounts only accept businesses that are considered low risk with little or no chargebacks, operating in a low risk industry, and little or no history of fraud. 10 per transaction (low-risk accounts) Processing rates vary by the acquiring bank/back-end processor (high-risk accounts). This includes information on individual transactions and batch totals with comprehensive reporting tools. Low-risk merchant accounts are best suited for businesses with low transaction volumes or large up-front investments. A low-risk merchant account, among other things, usually has these characteristics: They accept only one type of currency. Low-risk merchant accounts are designed for businesses that have a consistent volume of sales, low returns/chargebacks, and are in well-established industries. The industry is low-risk; Transactions are less than $20,000 per. Based on criteria that are developed by merchant service providers, your merchant account can fall into either one of the following: High Risk and Low Risk. The best merchant account providers help businesses through every step of the process. Again, it all comes back to that one word: risk. Instant approval hardly means instant for high-risk merchant accounts. When you begin your payment processing. Learn about the best business loans for bad credit, so you can get the funding your business needs, even if your credit score is poor. A few general characteristics that constitute a low-risk merchant to a payment processor include: Low transaction volume (less than $20,000 per month) Average transactions under $500; Business in one country that is labeled low risk (the U. No monthly minimum (low-risk accounts) Interchange + 0. Our objective is to give customers the satisfaction and be a reliable provider. Transaction fee for a single transaction ranges from. These merchant accounts generally have higher chances of fraud and chargebacks. Merchant acquirers carefully assess various factors, including industry type, transaction volumes, and chargeback ratios, to categorize merchants as low or high risk. To get a merchant account, one must submit an application with a merchant account provider. Prior applying for a merchant account, you must know if your business comes under low-risk. Low-risk merchant account. High-risk merchant accounts are payment processing accounts geared to businesses operating in high-risk industries and more prone to chargebacks, fraud, regulatory hurdles, and legal issues. For this type of business, the merchant needs a high-risk payment gateway and high-risk merchant accounts. Businesses classified as low-risk typically operate. A high-risk merchant account is a service that Payment Service Providers (PSPs) offer so that entities in fraud or chargeback-prone industries can accept card payments. Party of 4: innocent buyer; a victim of credit card theft; legitimate merchant; scammer/middleman; The cardholder places an order from a fraudulent, fake storefront that is offering goods at. 1. Low Risk. SMB Global is the option on our list with the longest standard contract length, three years. Chargebacks are not only costly, if your chargeback rate rises above 1% you will. High-risk merchant accounts are services that enable companies to accept credit card payments from customers. We chose Treati. A Delta 8 merchant account is a type of merchant account aimed to ease the transactional process of Delta 8 businesses. Here are the major differences between low risk and high risk merchant accounts. Mony Zenou, Founder, President, and CEO of Dejavoo Systems joins the show to discuss the power of cloud based POS offerings, and more. 5% to 1% higher than low-risk processing rates, which end up ranging anywhere from 3. This leads to a reduced risk. However, you can also use the EPD. Definition: Low-risk merchant accounts are typically associated with businesses operating in industries that have a lower likelihood of chargebacks, fraud, or legal complications. The following are additional requirements of low-risk merchants: Credit card transactions are usually $500 or less. Simple application process: submitting an application for your high-risk merchant account is so straightforward. You have zero to low chargeback ratio. But these obstacles shouldn’t stop you from running your perfectly legal and profitable business. These gateways are equipped to handle the nuances of risk credit. Low-risk merchant accounts get month-to-month agreements with no early termination fees, while high-risk accounts may have to sign a two-year contract and an ETF. MATCH List. Certificate of incorporation. Low-risk business is easy to deal with for acquiring banks, and so a low-risk merchant account usually requires fewer fees, and a simpler setup. Direct Post Integration. Affordable high-risk rates starting at a blended 2. And with evidence showing that 75% of eCommerce businesses saw an increase in fraud attempts in 2021, it’s more important than ever to understand high-risk transactions, as. APR: Not disclosed. Some reasons why your business may be deemed as a high-risk merchant account are as follows: high ratio chargebacks, accepting. Chargeback Prevention. As traditional merchant accounts support low- and mid-risk business operations, businesses operating in high-risk industries will. Meanwhile, businesses with low or moderate risk are less likely to be targeted for cancellations and other types of deception. SMB Global Overview. Visit Site. Unlike standard or low-risk accounts, these accounts factor in the financial risks that high-risk businesses face, especially susceptibility to fraud and chargebacks, and how they can be. Low-Risk Merchant Accounts. high risk merchant accounts is the amount of. If you want to register for credit card processing and a merchant account, you must determine whether you are a low-risk or high-risk merchant. While high risk merchants are businesses dealing with larger transactions of over $20,000, low-risk merchants are small business owners earning less than $20,000. For instance, one of the disadvantages is the fact that it might take longer to obtain one than it would in the case of a low-risk merchant account. account, you will typically need the following: A merchant A business that accepts credit cards for goods or services. Low-Risk Merchant: High-Risk Merchant: Average monthly sales volume: Less than $20,000: Over $20,000: Average credit card transaction:. High risk merchants who choose to process with instant approval companies may have their account shut down which can lead to lost revenue. A low-risk merchant account needs to meet many requirements, including a smaller number of transactions, low chargebacks, and low revenue. Painless can help get you approved for your High or Low Risk Merchant Account. 2) low-risk merchant accounts. Operate your low risk business easily. One of the biggest differences between low risk vs. k. Because of risk levels, either real or perceived, banks, financial institutions, and credit card companies would rather avoid working with high-risk. A rolling reserve that can be held for up to 180 days (or longer in some cases) after account closure. A low-risk merchant may need to meet many requirements; however, the most important are: low revenue, few transactions, and low chargebacks and returns. 3) Moto merchant accounts. Of that 1%, even fewer actually ARE “High Risk” Providers and aren’t simply making a run at picking up extra business. In addition to high-risk industries, they also work with low- and medium-risk industries. gateways guarantee safe work with bank cards when paying through a website on the Internet. A high risk merchant account is a type of payment processing account for unique businesses.