GLOSSARY
What is a high-risk merchant account?
A high-risk merchant account is a merchant account underwritten for businesses that card networks and banks see as more likely to generate chargebacks, fraud or regulatory issues, such as supplements, CBD or subscriptions.
How it works
It works like any merchant account, but approval needs more documentation, and terms can include higher fees, reserves and closer monitoring.
Why it matters for high-risk brands
For brands in these categories, a dedicated high-risk account is what keeps processing stable as volume grows.
FAQ
High-risk merchant account: questions
Why is my business considered high-risk?
Usually because of the category, a subscription model, a high chargeback ratio or a past account closure.
Is a high-risk merchant account more expensive?
Usually yes, because the bank carries more risk. Comparing published rates and reserve terms is the way to keep it fair.