How to find a high-risk merchant account provider

Hannah Allan
Jul 28, 2018 · 2 min read

High risk merchants can have a difficult time getting approved for payment processing from financial institutions. Businesses considered high risk typically have to fill out loads of paperwork, run a credit check, wait weeks for approval and, if approved, many banks will hold their money in reserves to cover any losses from chargebacks, etc. In this article, we will discuss how certain types of high risk businesses (ie. CBD credit card processing) can find a merchant account provider.

A high risk merchant cannot go directly to a bank and apply for a merchant account; they must find a provider and go through an Independent Sales Organization (ISO). An ISO provides merchant services and has the relationships with the banks. An ISO can help a merchant get approved by banks already vetted in their specific high risk industry. With that being said, merchants can find lots of ISOs online. There are a plethora of merchant account service providers, but not all of them can actually do what they claim, so try best to find one through a referral or make sure they are a reputable company having been in business for 10+ years.

There are actually a lot of factors that may determine whether a business is considered low risk, medium risk, or high risk. Usually, the investors are the ones that will give a business this term. After this, the bank is then able to figure out if they can work with the business or if they can give a specific amount of money to them. This usually happens right at the beginning. A high risk business is usually going to be a specific type of business, such as a casino, bail bonds, or a nail salon. Other factors are also going to be a contribution to the intended level of risk. Find out more the use of high risk payment gateway.

These types of accounts can really work well for certain types of businesses, but the business owners have to really pay attention to what they are doing. In the entire span of your business’s life, the bank should be able to trust what you are doing and this is no different in the beginning than it is in the end. Talk with your bank to determine if you may qualify.