Top 5 Reasons Why A High-risk Merchant Account Is Important

A high-risk merchant account, in simpler terms, is the labeling of a business by the payment processor. They are generally preferred by companies that are prone to fraudulent activities, chargeback, and scams, even when the business in question has to pay a higher processing fee. The higher professing fee is the payment providers’ way of compensating for the increased risk they take by partnering with the company in question. Private securities, gambling platforms, forex exchanges, and brokers are some of the businesses that are classified as high-risk and have an account with one or many high-risk merchant account providers. However, the risk status of a business can rapidly change as it grows.

But why would anyone opt for these accounts? Let’s look at the top reasons why having a high-risk merchant account is so important.

Top 5 Reasons Why A High-risk Merchant Account Is Important

  1. World coverage

The biggest advantage of having a high-risk merchant account is having access to the global market. The result? The account holder has the ability to operate in any country in the world and trade in various currencies without any hassle. This is hugely beneficial for businesses that offer their products and services to a global market, with customers paying in different currencies. Naturally, this makes it significantly easier for both the customers as well as the business in question.

However, it would be best if one keeps in mind that it is a facility that not all high-risk merchant account providers offer. So, it would be wise to determine whether such a facility is available or not before setting up a high-risk merchant account with the said provider.

  1. Chargeback protection

A high-risk merchant account automatically protects the business against chargebacks. It naturally puts the merchant account in good condition as one does not have to terminate the account, as is the case with a standard account when it crosses the chargeback threshold. One does not even have to opt for it, as this facility is automatically enabled with the high-risk merchant account.

  1. Cards payments enabled for both debit and credit cards.

Another significant advantage of opening a high-risk merchant account is that the account automatically accepts both credit and debit cards for payments. And further, you don’t have to enable this.

People prefer to make any kind of purchase through their cards, as it is the default payment method. Naturally, businesses that offer such facilities to their customers will be in good graces, enabling them to reach unimaginable heights. Also, it has been thoroughly studied that customers who make purchases through cards tend to spend more than average compared to folks that usually pay via cash. So, in a roundabout way, you are bringing more money to your account by opening a high-risk merchant account.

  1. Security

Security is the primary concern for customers as well as businesses nowadays, especially with the rapid increase in financial frauds and hacking cases. Having a secure merchant account is highly beneficial, and that is precisely what you will get by opening a high-risk merchant account. Providers of said accounts make use of advanced technology not just to detect any kind of fraud attempt but also to prevent them. The most common target for fraudsters is the customers’ credit and debit card details, which are kept safe with the high-risk merchant account.

  1. Customer satisfaction

Last but not least, customer satisfaction is one of the main reasons why businesses opt for a high-risk merchant account. Customers who are satisfied with their transactions are more likely to come back to the portal and make further purchases. Additionally, there is a possibility of referral as well, something that can be hugely beneficial. Improved security, local currency exchange, and debit and credit payment acceptance work in tandem and would leave the customer delighted with the services offered by the merchant.


Opening a high-risk merchant account can be highly beneficial to both the business and its customers. The merchant would be offering their absolute best to their customers, which could easily allow them to stand head and shoulder apart from the competitors in the market. So, if you are on the fence about opening a high-risk merchant account, don’t be! Connect with a trusted provider and open a merchant account today!

Francis Nwokike

Francis Nwokike is a Social Entrepreneur and an experienced Disaster Manager. I love discussing new business trends and marketing tips. I share ideas and tips that will help you grow your business.

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