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HIGHLY EXPERIENCED PAYMENT PROCESSING TEAM

High-Risk Card Processing (CBD)

What is a high-risk merchant account? Essentially, it means that your business or its customers and clients are labeled as riskier. This typically correlates with an increased risk of fraud or chargebacks that can be associated with the nature of the product or service, the price or legality of the product or service, and even the turnaround on delivery of the product or service (e.g., if a product is immediately delivered on payment versus a 6-month delay in delivery).

Reasons Why a Merchant May be Considered High Risk

High Transaction Volume

Merchants may be considered high-risk if they have a high volume of transactions. High-risk merchant accounts will be subject to higher fees depending on their transaction levels.

High Risk Industry

While a merchant may have a spotless record, they may be labeled high-risk because the industry they are working in is considered to be at a higher risk of fraud, returns, or chargebacks.

Accept International Payments

If a merchant sells to customers internationally in countries that are listed as high risk of fraud, they may be considered high-risk (basically any country except the US, Canada, Australia, Europe, & Japan).

Types of Business that are Considered High Risk

Businesses that usually fall into the category of high risk include the following:

  • Gambling

  • E-cigarette, CBD and vape shops

  • E-Commerce

  • Adult industry

  • Travel, including airlines, cruises and vacation planners

  • Furniture and electronic stores

  • Online dating

  • Debt collection

  • Subscription services

If you’re a high-risk business and need a high-risk card processing system, Southwest Merchant Systems is more than happy to help! Give us a call at 619-251-8000 or click here to get in contact with us today!

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