What Makes a Merchant Account “High Risk”?

All merchant accounts come with varying levels of risk associated with them. Some processing companies want nothing to do with high risk companies while others focus almost exclusively on these high-risk sectors.

Zen Payments treats all business with the respect that they deserve, and we do not put merchants in a “bucket” if you are in an industry deemed high risk. We work with most business types as long as we deem what you are doing to be honest, non-deceptive and are in it for the right reasons.

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Some examples of high risk industries are:

  • Continuity Programs
  • Nutraceuticals
  • Multi-Level Marketing
  • Hemp/CBD Sellers
  • Trial Offers
  • Real Estate Coaching
  • Etc…

So why are these industries High Risk?

  • Chargeback Risk: A chargeback is when one of your customers disputes a transaction. This can be for a variety of reasons including them not authorizing the charge, not getting what they are paid for, or even not using an EMV chip card. If your business surpasses the chargeback thresholds set by the card brands, then your merchant account can be shut down and you even may incur fines.
  • Heavily Regulated Product/Service: Some industries require many policies and procedures to be in place in order to sell a product or service. For Example: merchants selling tobacco online must ensure the customer is of legal age to purchase their product. This is much more difficult to do online than face to face.
  • High Ticket Items: If your product or service has a high average transaction amount then this increases exposure that the acquiring bank has on these transactions.
  • Time from Delivery to Fulfillment: If you are in an industry where there is a lot of time elapsed from the time of purchase to the time of fulfillment then there is also more exposure to the acquiring bank. Some examples of this are hotel reservations, flights or custom-built items.

If you have been deemed high risk, then give Zen a call. If you are trying to operate an honest business but have been shunned by processors, then we can help.

For inquiries, call 801-405-9888 or email chandler@zenayments.com