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How Much is a High Risk Merchant Account and is it Worth It PAUL

high risk merchant account


The high risk designation for your business is determined based on several factors like the nature of business, high sales volumes, high level of chargebacks, and others.

So, if you are a high risk merchant, you must have a high risk merchant account. However, since the high risk business can put banks and payment processors at risk, it comes with a higher cost than regular a regular merchant account.

Knowing that a high risk merchant account requires higher processing fees, you might wonder if it is worth the cost. Today, this article will help you what a high risk merchant account can do for your business and if it is worth the investment.

Is Setting Up a High Risk Merchant Account Important?

Businesses prone to chargebacks, refunds, or scams must need high risk merchant accounts to protect your business from chargebacks.

Signing up for a high risk merchant account will provide the following benefits:

When you open a high risk merchant account, you automatically put your business at a great advantage knowing you will reach a wider audience. The ability to accept credit and debit card payments will boost your business and reach customers that heavily rely on card payments across the globe.

A study suggests that modern customers tend to spend more using card payments rather than traditional cash transactions.

A high risk merchant account means a convenient way for these customers to avail of your services or purchase your products bringing in more profit for your business.

Opening a high risk merchant account from a reputable service provider means added security using the latest technologies that detect scams and frauds.  And with improved security, your customers will experience satisfactory services through hassle free payment transactions.

High Risk Merchant Account Set Up Cost

Setting up a high risk merchant account is also accepting the harsh truth that it costs more than a regular merchant account. This means you will have to prepare to pay costly processing charges, account fees, and higher chargeback fees.

A business with a high risk merchant account may also be obligated to be in a longer contract, unlike regular merchant accounts. This means your account will be subjected to pay for the monthly or annual fee, or early termination fee.

Not only that, but this could also subject the account to a rolling reserve, a certain amount or percentage of your income is placed on hold until the transactions are successfully verified and are not at risk of chargebacks.

High risk merchant account pricing models can be fixed where you have to pay for a fixed percentage per transaction.

Or it can be tiered according to the level of transactional risk they carry. Other fees to consider are refund fees, PCI compliance fees, chargeback fees, and chargeback reserve fees.


The cost accompanying your high risk merchant account may be slightly higher but there are payment processors who offer reasonable costs. It may cost more but setting up a high risk merchant account will set your business up and running while giving customers convenient service for an enhanced overall experience.

Start looking for a high risk merchant account service provider that will provide valuable payment processing solutions for your business needs.

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