Merchant accounts are required to ensure that a enterprise to simply accept credit card payments. As a service provider, there are two places you possibly can receive a service provider account; a bank, or a third party provider. For online gaming merchant account requirements retailers the most popular, and in most cases cost effective, supply is from a third party merchant account provider.

A high risk service provider account is required by businesses that, when compared to a ‘traditional’ items/companies business, are at a higher risk of:


Fraudulent Transactions

High quantity of gross sales

High rate of refunds

High rate of cost-backs

Different reasons a service provider may be categorized as a high risk are:

Merchants Location – Some merchant account suppliers will not settle for retailers from certain countries.

The Product/Service the merchant sells is prohibited in some jurisdictions.

Merchant Credit History – Some suppliers is not going to accept merchants with poor or no credit history.

Because of the high risk classification, most banks won’t present a merchant account to those in a high risk business (corresponding to adult entertainment, reproduction items, pharmacy and so on). As such some third party suppliers provide their companies to each general retailers and high risk merchants.

Merchant account providers that have been developed to service high risk retailers will usually present a higher stage of fraud protection, so as to lower the cost their retailers incur. Nonetheless, in an effort to cowl the higher degree of risk, rates for a high risk service provider account will always be higher than their lower risk counter-parts.

When in search of a high risk service provider account, there are a number of factors that it is best to take into account. Rates shall be one of the vital necessary factors, and this consists of fees for refunds and cost-backs, together with transaction charges, the discount rate and ongoing fees. Then you will want to think about fraud protection, customer support and reporting available to you as a merchant.

Bobby Elliott