What exactly is it that classifies certain businesses – such as multi-level marketing businesses, adult websites, online gambling and casinos to name a few – as high risk?  

These merchants are considered high-risk for several reasons:  

1.) Online casinos, gambling, adult websites, etc. tend to be high-volume merchants. They do a lot of business every day, making it harder to keep track of transactions and instances of fraud more likely than other merchants due to sheer volume. 

2.) Some of these high volume merchants – particularly the casinos and the gambling – are dealing with vast sums of money changing hands on a daily basis.

3.) High risk merchants and high volume merchants normally do all of their business over the internet, requiring personal information (names, addresses and most importantly, credit card information) to be transmitted electronically and possibly vulnerable to hackers and identity thefts.

Banks are often hesitant to take a chance on high risk merchants and high volume merchants because of this increased risk of fraudulent activity. Adult themed websites (videos, sexual goods, etc.) have an especially hard time getting approved for merchant accounts because they have a high instance of charge backs – credit card payments made with stolen cards that have to be returned after the charge has been processed. Adult websites can also have a social stigma attached to them that makes banks reluctant to approve them for merchant accounts – although the goods and services on the website might be perfectly legal, a bank can argue that children can be exposed to the website, to name one example.

Because banks are so reluctant to take chances on high risk merchants and high volume merchants (no matter how profitable those high risk merchants might be), it is extremely hard for the merchant to get approved for a merchant account. Even when they do get approved, they often have to pay exorbitant fees due to the risk involved.

Luckily, as the amount of online businesses needing the capability to process payment has increased, so have the number of credit card processors offering services to high risk merchants. The fees for these accounts will still be higher than the fees for the average merchant account – however, the high risk merchant will have a wealth of resources (such as the ability to process foreign payments and a customer service team to help them through any questions about their statements or transactions) that the merchant would not have with a “normal” merchant account.

High Risk Processor specializes in High Risk Merchant Accounts, High Volume Merchant Accounts and Offshore Merchant Accounts. High Risk Merchant Accounts can include mail order, telephone order, adult industry, direct marketing industry, dating, online dating, escort services, outcall services, travel, telecom, timeshares industry, herbal supplements, diet programs, subscription services, membership services, membership clubs, ticket sales, MLM merchant accounts, multi-level marketing merchants, bail bonds, pawn shops, water filtration systems sales, collection agencies, auto rental, rare coin shops, computers, custom design products, software sales, detective services, door to door sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high ticket sales, high volume merchant accounts, home based businesses, fortune tellers, infomercial merchant accounts, insurance products, investment products, custom jewelry sales, multi level marketing, MLM, phone sales, internet businesses, seminars, schools, education, sports collectibles, used auto sales, water purifier sales, weight loss centers, vitamin stores, international merchants, companies facing high chargebacks, etc.