How to open a High Risk Merchant Account

If you hope to find a provider that will approve your high risk merchant account, you will need to do work and do some homework to find the right provider. Before looking for a provider, you will want to obtain the right documentation.

Your documentation will include: your business license/permits, financial statements, bank statements, processing statements, and tax documents. Having this correct documentation will allow you to prove that you have a legitimate business and a good financial history.
It is advisable to choose a specialized processor that specializes in high risk merchant accounts for your field instead of a bank. High risk merchant account specialists like Trinity Consultings, PaymentCloud, or Durango Merchant Services can get you approved, but also know the specific industries.

Be prepared to incur a slightly higher fee (2.5% to 5.5%) given the elevated risk factor with a second-high-risk processor. Keep your chargeback ratio low (1% or lower) and maintain predictable revenue to bolster your chances of being approved.

Whenever you apply, always be complete and accurate about your business model, consumer category, business model, and risk mitigation. Always be honest if there have been issues with prior processing, chargebacks, or anything else to do with the processing of payments and chargebacks.

Typically, specialized payment providers should be able to approve your account within 24-72 hours. Once you have been approved, get into the habit of using best practices in scams and fraud prevention, and whichever agreement you enter into, your payment processor will require that, over time, you establish an account stability position so that you cannot be shut down on notice.