The exact reason your business is considered a high-risk merchant varies. It changes from one merchant services provider to the next. Common criteria used in determining a high-risk merchant include the following:
High chargeback rate: : If your industry or line of business shows a high rate of either chargebacks or fraud, banks may consider you a high-risk merchant. See other businesses considered High Risk
Offshore businesses in the US: If your company is headquartered overseas, and you sell mainly to US customers, banks might consider you a high-risk merchant.
The questionable legality of products or services: Many banks associate this factor with high-risk businesses. Drug paraphernalia or pornography are some of the most obvious examples, but there is a long list of others.
Questionable marketing practices: Some business practices are associated with the idea of a scam. Do you offer Free Trials which become subscriptions?
Bad personal credit: Your business is the primary focus in classifying high-risk status. However, your personal credit can be part of this equation too.
High average ticket sales: If your business sells high ticket items like furniture or equipment with credit card payments you could also be considered a high-risk merchant.
Regardless of High Risk status, if you are a legal US business, we can provide you a payment solution!