Small Business Guide
High-risk merchant accounts, explained
If a processor called your business “high risk,” or declined you outright, it does not mean you did anything wrong. It means you need a program built for your kind of business. Here is what that label means and how to get approved.
Why a business gets flagged high risk
- Your industry has a history of chargebacks or refunds (think travel, events, supplements, or subscriptions).
- You take a lot of card-not-present sales: phone, online, or recurring billing.
- You have high average tickets or large monthly volume relative to a young business.
- Your business is new, or had processing trouble or a closed account in the past.
What to expect
- A closer underwriting review. The processor wants to understand your business before approving.
- Sometimes a reserve: a portion of funds held for a period to cover potential chargebacks.
- Pricing that reflects the added risk, which is why comparing offers matters even more here.
- Approval that a standard, one-size processor would simply decline.
Common questions
What is a high-risk merchant account?
It is a merchant account for a business that card processors consider higher risk, usually because of the industry, chargeback history, or how payments are taken. It works like a normal account; it just goes through specialized underwriting and may carry different terms.
Why was my business labeled high risk?
Common reasons: an industry with frequent chargebacks or refunds, lots of card-not-present or recurring sales, high volume for a new business, or past processing trouble. Being high risk does not mean you did anything wrong; it means a standard processor will not underwrite you.
What is a reserve?
A reserve is a portion of your funds the processor holds for a set period to cover potential chargebacks. Not every high-risk account has one, and the terms vary. We explain exactly what to expect before you sign anything.
Can Norvet help if I have been declined?
Often, yes. We place high-risk businesses through specialized programs built for them, instead of the standard processors that decline you. Tell us about your business and we will tell you honestly whether we can help and what to expect.
Been declined? Let us take a look.
Tell us about your business and we will tell you honestly whether we can place you, and what the terms would look like. No pressure.
New to all this? Start with what is payment processing.