High Risk Merchant Account at HighRiskPay.com Guide
For businesses that process payments online, getting approved for a merchant account can feel like a hurdle—especially when your industry carries higher chargeback risk, which is where high-risk merchant accounts come in, offering specialized payment processing for businesses that standard providers turn away. This guide walks through what these accounts are, which MCC codes classify you as high-risk, how funds flow, and what High Risk Pay and similar providers offer to keep you processing.
High-risk fee range: $50–$200/month ·
Typical reserve: 5–10% of volume ·
Chargeback threshold: Above 1% ·
Setup time: 1–3 business days
Quick snapshot
- High Risk Pay publishes fees as low as $0.25 per transaction and $9.95 monthly (High Risk Pay rates page)
- MCC codes determine processing fees and risk classification (Regions Bank insight)
- High-risk merchant accounts require chargeback rates above 1% (NerdWallet business software guide)
- Exact credit score minimum varies by provider; some accept 600+ (TailoredPay analysis)
- Reserve percentages are not always published upfront (ChargeBlast review)
- Application to active processing: 1–3 business days (High Risk Pay) (Corepay article)
- Reserve release schedules are typically rolling (e.g., 6-month hold) (Corepay article)
- Apply with documentation: business license, processing history, bank statements (High Risk Pay)
- Choose a provider that matches your MCC and risk profile (NerdWallet business software guide)
Here are the essential facts about high-risk merchant accounts at a glance.
| Fact | Detail |
|---|---|
| Definition | High-risk merchant account for businesses with elevated chargeback risk |
| Typical MCC codes | e.g., 5967 (direct marketing), 5813 (gambling), 7273 (dating) |
| Approval requirements | Credit score 600+ or alternative underwriting |
| Average setup time | 1–3 days |
| Common providers | High Risk Pay, Stripe, Chargeflow |
What is a high risk merchant account?
A high-risk merchant account is a specialized bank account that lets businesses process credit card payments when standard providers classify them as too risky. The risk usually comes from high chargeback rates, fraud exposure, or an industry with regulatory complexity.
High-risk accounts cost more, but for businesses in categories like gambling or CBD, they are the only option. The added fees are the price of access to card payments.
How does a high-risk merchant account differ from a standard account?
- Higher fees: monthly fees start at $9.95 at High Risk Pay (rates page), but typical high-risk fees range $50–200/month (TailoredPay analysis).
- Reserve requirements: 5–10% of monthly volume held as a rolling reserve (Corepay article).
- Longer underwriting: providers assess chargeback ratios and business history, not just credit score.
The implication: If your business’s chargeback rate exceeds 1%, a standard account won’t last. A high-risk account is the only way to keep processing without sudden termination.
Which MCC codes are high risk?
MCC codes are four-digit numbers assigned by Visa and Mastercard to categorize a merchant’s primary business. Some codes are automatically flagged as high-risk because of historical chargeback patterns.
What is a high risk code?
- Common high-risk MCCs include 5967 (direct marketing – inbound telemarketing), 5813 (gambling), 7273 (dating services), 5122 (pharmaceuticals), and 4829 (wire transfer money orders) (Stripe MCC guide).
- Visa’s manual defines MCC as a four-digit identifier based on the merchant’s primary business (Visa Merchant Data Standards Manual).
- CommerceGate notes that businesses in these categories face higher chargeback exposure (CommerceGate high-risk MCC guide).
How to look up MCC codes online?
- Visa’s MCC lookup tool is available on their website; Mastercard provides a similar directory.
- High Risk Pay’s ecommerce MCC code page explains how codes classify online merchants (High Risk Pay ecommerce MCC page).
What this means: Your MCC determines not only your processing fees but also whether you qualify for standard accounts at all. Knowing your code is the first step to finding the right provider.
Your MCC code can change if your business offering shifts. Regularly verify your code with your processor to avoid unexpected rate hikes.
How to receive money from a merchant account?
When a customer pays with a card, the funds are captured by your processor and settled to your merchant account. From there, you withdraw the funds to your regular business bank account.
Can you withdraw money from a merchant account?
- Yes, but withdrawals are subject to settlement schedules and reserve holds. High-risk accounts often have a rolling reserve (e.g., 6-month hold) (Corepay article).
- High Risk Pay settles funds daily or on a rolling basis, with the reserve released after the hold period.
What is a high-risk transaction?
- A high-risk transaction is one that has elevated probability of chargeback or fraud. Examples include card-not-present, high-ticket purchases, and recurring billing (CommerceGate high-risk MCC guide).
The catch: While you can withdraw, the reserve can tie up cash flow for months. Plan your business finances accordingly.
What credit score is needed for a merchant account?
Credit score requirements vary by provider, but many high-risk processors accept scores of 600 or above. Some use alternative underwriting based on processing history and chargeback ratios.
How to get a merchant account with bad credit?
- Look for providers that emphasize business history over personal credit. TailoredPay suggests that strong processing volume can offset a lower score (TailoredPay analysis).
- High Risk Pay’s application process includes review of business documentation and processing history, not just credit.
Why this matters: A bad credit score doesn’t close the door. But you’ll likely face higher fees and a reserve requirement.
What is an example of a high-risk account?
Businesses in gambling, CBD, adult entertainment, travel, and subscription services are classic examples. Their characteristics: high chargeback rates, regulatory uncertainty, or large average ticket sizes.
What is a high-risk transaction?
- High-risk transactions often involve high-ticket amounts, frequent chargebacks, or regulatory uncertainty (NerdWallet business software guide).
- NerdWallet’s roundup of high-risk processors lists High Risk Pay as a top provider (NerdWallet business software guide).
The trade-off: Specialized accounts cost more, but they keep your business operating legally and reliably.
How to Get a High-Risk Merchant Account at HighRiskPay.com Step by Step
- Prepare your business documentation. High Risk Pay requires a business license, bank statements, and processing history if available (High Risk Pay rates page).
- Submit an application online. The form asks for your MCC, estimated monthly volume, and business type. Approval often comes in 1–3 business days.
- Review the terms. Check fees, reserve percentage, and settlement schedule. High Risk Pay publishes a transparent fee page (High Risk Pay rates page).
- Integrate your payment gateway. High Risk Pay supports popular gateways; documentation is provided.
- Start processing. Once approved, you can begin accepting payments. Monitor chargeback ratios to maintain your account.
The result: A high-risk merchant account from High Risk Pay gives your business a payment channel that standard providers wouldn’t offer, but it comes with the responsibility of chargeback management.
Confirmed facts
- High-risk merchant accounts are necessary for businesses with chargeback rates above 1% (NerdWallet business software guide).
- Certain MCC codes are considered high-risk by default (Stripe MCC guide).
What’s unclear
- Exact credit score requirements vary by provider; some accept 600+ (TailoredPay analysis).
- Reserve percentages are not always published upfront (ChargeBlast review).
High-risk merchant accounts are designed for businesses with higher risk of chargebacks and fraud, allowing them to accept payments where standard accounts would be declined.
— Stripe (Stripe MCC guide)
High Risk Pay is a top provider for high-risk merchant accounts, offering competitive rates tailored to business needs.
— NerdWallet (NerdWallet business software guide)
For a business operating in a high-risk category, the choice is clear: accept the higher fees and reserves of a specialized merchant account, or risk being shut out of card payments entirely. High Risk Pay provides a viable pathway, but chargeback management remains essential to keep your account active.
Businesses seeking a high-risk merchant account should review HighRiskPay.coms approval process to understand the associated fees and underwriting requirements.
Frequently asked questions
What fees are associated with high-risk merchant accounts?
Fees typically include a monthly fee ($15–$50), per-transaction fees (e.g., $0.25 at High Risk Pay), and gateway fees ($10–$30/month) (High Risk Pay rates page; TailoredPay analysis).
How long does it take to get approved for a high-risk merchant account?
Approval typically takes 1–3 business days, depending on documentation and risk assessment (High Risk Pay rates page).
Do high-risk merchant accounts require a reserve?
Yes, most high-risk accounts require a rolling reserve of 5–10% of monthly volume to cover potential chargebacks (Corepay article).
Can I use a high-risk merchant account for my startup business?
Yes, startups can apply. However, providers often require some processing history or a strong business plan. High Risk Pay reviews each application individually.
What is the difference between a high-risk and a high-volume merchant account?
High-risk accounts focus on chargeback and fraud risk, while high-volume accounts are for businesses with large transaction volume but lower risk. A high-volume account may still be standard if the risk profile is low.
How can I reduce chargebacks on my high-risk account?
Use fraud detection tools, clear billing descriptors, responsive customer service, and monitor transactions regularly. Keeping chargeback rates below 1% helps maintain your account.
What is a rolling reserve?
A rolling reserve holds a percentage of each transaction’s funds for a set period (e.g., 6 months) to cover potential chargebacks. After the period, the funds are released (Corepay article).
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