What Are The Rules Related To High-Risk Merchant Accounts?

The high risk merchant accounts offshore are an excellent way to accept credit card payments from online customers. These accounts for merchandisers have stricter requirements than traditional merchant accounts, so you must have all the correct paperwork before opening one. Here is what you need to know about rules related to a high-risk merchant account.

High-risk merchant accounts: A worldwide service to accept payments from multiple sources

A high-risk merchant account is a category of merchant service that allows you to accept credit card payments in your business. High-risk traders are those who sell products or services that have an elevated chance of chargeback, including:

  • Food and beverages at restaurants
  • Retail stores selling luxury goods
  • Marketplaces selling goods and services online
  • Retailers selling high-priced items such as jewelry or electronics online
  • Businesses that sell goods or services to customers outside of the United States

Rules related to merchant accounts and these services

High-risk merchant accounts are financial services that allow businesses in industries considered high-risk, such as processing credit card payments. These services come with specific rules and regulations to ensure compliance and manage risk.

This article will explore the guidelines and requirements for obtaining and maintaining a high-risk merchant account, including compliance with laws and industry standards, risk management strategies, and ongoing monitoring of transactions.

If you’re looking for the best high risk credit card processing solutions in the US, consider checking out this comprehensive guide that highlights the top providers in the industry, offering secure and reliable services.

The first rule related to opening a high-risk merchant account is having good credit

The first rule related to opening a high-risk merchant account is having good credit

It is foremost that you get the perks of this service. You can have a credit score of 600 or higher, meaning you have no late payments or bankruptcies on your record. If your credit score is lower than 600, then it is recommended that you apply with an alternative lender or bank before being approved for the high-risk program.

  • You can pay bills on time. It curtails to if you do not pay them within their due date, they will send it to collections and charge fees by the creditor (or even sued).
  • Your terms with the previous service provider (if any). Is there any issue between you and your service provider that led to judicial involvement?
  • You have a reliable source of income. It means that you have a consistent paycheck coming in every month. It does not fluctuate. You can prove your income by providing pay stubs or W2 forms from the past three months and bank statements showing at least $2,000 in available funds as collateral.
  • You have a good credit score of at least 600. 
  • You have a steady job. It means you work at the same company for at least six months or do freelance work consistently. 

The second rule is to have a business operating for at least two years

The second condition to have a high-risk merchant account is to have a business operating for at least two years. You must understand this because it is not just the issue of how long you have been in this field. It also depends on whether your financial records are accurate and up-to-date.

It can help ensure that customers will not report fraud or chargebacks on your card transactions and try to entail they are using the cards responsibly.

The longer you have been in operation, the better! If someone complains about issues related to fraud or chargebacks, then it is likely that they will seek reimbursement. Even though there were no problems during previous transactions and therefore no need for compensation.

The longer it takes before these issues arise again after being resolved satisfactorily by customer service representatives working within their system(s), the more people will be able to trust using their services. It is because they know they will not encounter any serious problems while doing so. 

The third rule is about having an active website that represents your business

having an active website that represents your business

The third requirement is that you have an active website that represents your business. You can only open a high-risk merchant account if you have a website.

Your website should be user-friendly and have clear information about what you are selling. For example, if it is food products or electronics. It should also have information about how to buy from the company and what payment methods they offer (e.g., credit cards).

Your customer service team needs to be easy to reach via phone or email. 

The fourth requirement is being willing to pay higher fees than traditional merchant accounts.

The fourth requirement of opening a high-risk merchant account is being willing to pay higher fees than traditional merchant accounts. It is because the risk of fraud and chargebacks is higher. You will likely get charged higher fees on this type of account.

You may also ask about any other fees that you will be charged by your credit card processor or other service providers, such as an activation fee if they need to set up your payment processing system for it to work with their network.

Some providers charge monthly fees, while others do not charge anything at all. However, some have an annual contract or monthly charge program where they pay per transaction instead of per month (for example, $0.10 per transaction).

The fifth rule is being able to process a minimum amount of transactions each month

The final requirement today is to process a minimum amount of transactions you do each month. It can vary according to your business and how busy your store is. It is necessary if you are a small business that sells items online. You can process many transactions each month. Thus would not require high-risk merchant accounts.

However, it will be nice if your online store handles large orders quickly to take advantage of sales opportunities if you sell large amounts of goods or services through an e-commerce platform.

The rule here is simple: if something seems too good to be the truth, it is probably the farthest from the truth! Try to make sure any offers sound legitimate before signing up with them; it could save both money (and headaches!) down the road!

The last requirement is that you have a business plan. Your business plan should include information about the history of your company, how much capital it takes to get started, where the money will come from, what products or services you are selling and how much they cost.


The rules related to high-risk merchant accounts are different from traditional merchant accounts. You can look into these accounts if you want to accept credit cards in your business.

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