Frequently Asked Questions

A high risk merchant account is a payment processing account designed for businesses that operate in industries considered higher risk by banks and financial institutions. These accounts accommodate businesses with higher chargeback rates, regulatory scrutiny, or reputation risks that traditional payment processors typically avoid.

Businesses may be classified as high risk for several reasons: operating in regulated industries (CBD, firearms, gaming), having subscription-based billing models, selling age-restricted products, operating in industries with high chargeback rates, or having a history of financial instability. This classification is determined by banks and payment processors based on risk assessment factors.

Common high risk industries include CBD and cannabis products, online gaming and gambling, firearms and ammunition, subscription services, nutraceuticals and supplements, adult products, telehealth services, travel agencies, credit repair services, and vape/e-cigarette retailers. These industries often face regulatory challenges or higher fraud rates.

High risk merchant accounts offer businesses the ability to process payments when traditional processors won't approve them, specialized fraud protection tailored to high risk verticals, support for international payments, and expertise in navigating complex regulations. They also typically include features designed to reduce chargebacks and manage risk effectively.

Yes, high risk merchant accounts typically have higher fees compared to standard merchant accounts due to the increased risk assumed by the payment processor. Rates vary based on your specific industry, business history, and transaction volume. However, these higher fees provide access to payment processing services that might otherwise be unavailable to high risk businesses.

To reduce chargebacks, implement clear product descriptions and return policies, use recognizable billing descriptors, provide excellent customer service, utilize fraud prevention tools, maintain detailed transaction records, and implement a chargeback alert system. Circopay offers specialized chargeback prevention solutions designed for high risk merchants.

Typically, you'll need to provide business incorporation documents, valid ID for business owners, processing statements (if available), bank statements, a detailed business plan, a functioning website with clear policies, and potentially financial statements. The specific requirements may vary based on your industry and business model.

The approval process for high risk merchant accounts typically takes 1-2 weeks, though it can vary based on your industry and documentation readiness. More complex businesses or those in heavily regulated industries may require additional underwriting time. Circopay works to expedite this process while ensuring compliance with all regulatory requirements.

Yes, it's possible to obtain a high risk merchant account with bad credit or previous processing issues, though it may affect your terms and rates. Circopay evaluates applications on multiple factors beyond credit scores, including business model, operational history, and risk mitigation measures you've implemented.

High risk merchant accounts typically allow you to accept major credit and debit cards (Visa, Mastercard, American Express, Discover), ACH payments, and alternative payment methods. Depending on your business needs, cryptocurrency processing and international payment options may also be available through Circopay's solutions.