Well-managed companies often wonder why their business is placed in a high risk merchant account processing category. After all, the business history is solid, the products being sold are beneficial and customers are satisfied. Somehow, it does not seem quite fair that the banks classify the company in a high risk merchant account processing category.

High risk merchant account processing classifications indicate that the acquiring bank thinks chargebacks and other contingent liabilities are more likely to occur than with non-high risk merchant account processing. However, keep in mind that a classification is simply a label. Companies in high risk merchant account processing categories can certainly obtain accounts with favourable terms and low rates which are similar to non- high risk merchant account processing.

Here are some general considerations the acquiring banks factor into high risk merchant account processing categories.