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How to get a high-risk merchant account?

Time to read: 2 minute(s)

If you have an online business, you probably should have opened a merchant account. This type of account allows customers to pay for the goods purchased on the store’s website through a bank card, which simplifies the purchase process for both the client and the seller.
However, the process of opening a merchant account is sometimes quite laborious and not entirely clear, especially if you work in a high-risk industry.
Today we will try to lift the veil of secrecy and understand how to open a merchant account for a high-risk business.

What is a high risk merchant account?

A high-risk merchant account is an account in a financial organization required to accept card payments that means that your business falls in a high-risk category.

How is a company’s risk level determined?

The degree of business risk is assessed personally by bank or payment system representatives. The criterion for determining the level of business risk is influenced by:

  1. Industry average number of chargebacks.
  2. The presence of credit history.
  3. Countries where business is provided.
  4. The volume of transactions exceeds $ 20,000/month.
  5. Seasonality of business.

Below, you can find a table with different business types and define what is a high-risk business for merchant account providers.

Low-risk Medium-risk High-risk
Horticultural Services, Landscaping Services Veterinary Services Gambling
Office, Photographic, Photocopy, and Microfilm Equipment Agricultural Cooperatives Gaming
Hardware Equipment and Supplies Electrical Contractors Travel, including airlines, cruises and vacation planners
Plumbing and Heating Equipment and Supplies Office and Commercial Furniture Dating
Books, Periodicals, and Newspapers Medical, Dental Ophthalmic, Hospital Equipment and Supplies Adult industry
Photofinishing Laboratories, Photo Developing Nurseries E-commerce
Air Conditioning and Refrigeration Repair Shops Shoe Stores Debt collection
Electrical And Small Appliance Repair Shops Florists E-cigarette, CBD and vape shops
Welding Repair Laundry, Cleaning, and Garment Services Subscription services and companies with recurring payment plans
Barber and Beauty Shops Multi Level Marketing (MLM)
Car Rental

Haven’t found your type of business? Use the table to determine the level of business risk and determine which type of merchant account is right for you.

How to open a high risk merchant account?

To open a merchant account, you need to contact any processing center or other organization that provides the relevant services. Next, you will be asked to provide a package of KYC documents. This is followed by the underwriting procedure – the period during which the financial institution checks the documents.
After successful verification, you will be given all the necessary credentials to start processing.

How to open an account with PayDo?

PayDo is online banking that works with various types of businesses worldwide. To open an account you need:

  1. Register the account.
  2. Verify your personal information.
  3. Verify your business.
  4. Get payment details.
  5. Start accepting payments.

If all the necessary documents are provided, the verification procedure takes 1 to 3 business days.
Are there any chances to get my high risk merchant account approved instantly? Of course. Once you’ve registered a PayDo Business account and verified your project, you will be issued with bank details. From this point, you can integrate a checkout page on your website and start accepting payments.

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