Any savvy small business owner should be prepared to face all eventualities — from fluctuating income and natural disasters to consumer discontent and any change in inventory. On the other hand, no entrepreneur ever thinks their business can get rejected by a credit card processor because they are considered high risk.

What does it mean to be High Risk?

Credit card processors aim at making money with the least complications possible. Therefore, any business vulnerable to high rates of chargebacks and fraud is considered risky and may need to go to a high-risk merchant account payment gateway. Furthermore, any company based outside the United States is also prone to a lot of trouble and will be deemed high risk.  For that reason, processors often go for businesses that are 100% legitimate and have good credit.

What are the Consequences of being High-Risk?

  • An Extra budget to meet legal requirements

The fact that your business has been branded risky leaves you no option but to agree to the financial consequences that come with it. You must work to meet compliance standards set by all levels of authority especially if you’re in an industry known for frequent accidents. This means you may need an extra budget to buy safety gears as the law dictates. And the reward for proving that you run a safe company despite the nature of your industry is that processing companies will more likely work with you.

  • Insurance Considerations

Your risky business will also have to consider larger (costlier) insurance plans. For instance, a childcare service company will have to pay more to protect themselves from deadly lawsuits filed by parents whose children accidentally suffer injuries under their care.


No one rejoices in paying higher fees, but this is the cost you have to pay for conducting such a business. However, always do your best to get the lowest rates with a dependable merchant service provider, without compromising on quality. Who knows? You may meet one who is less prudish about the nature of your business and thus more willing offer you a low rate.

Author Bio

Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 high-risk merchant account payment gateway Company serving both traditional and high-risk merchants.

You must be logged in to post a comment.