What Is The High-Risk Merchant Account?
A merchant account gets identified as a high-risk account when the payment processor labels it as a higher risk for chargebacks and fraudulency. Moreover, the high-risk merchant accounts also get subjected to the rolling reserve. A payment processor also holds a certain percentage of their income until it further verifies that transactions were not fraudulent or did not carry the risk of chargeback. This is why merchant accounts pay higher processing fees to account for the risks. What are the reasons for a merchant to be considered high-risk? There are several reasons where the payment processor identifies a merchant account as high-risk. Each provider has a different set of criteria for high-risk merchant accounts, and here are some reasons that mark them in the high-risk category. High Transaction Volume Several merchant accounts are considered high-risk if they have a high volume of transactions and average transaction rate. If the merchant accepts international payments, their business gets marked as a high-risk business.