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What’s the difference between a high-risk merchant account and a low-risk merchant account?

What’s the difference between a high-risk merchant account and a low-risk merchant account?

Merchant account processors and banks view businesses in two categories: high-risk and low-risk. Businesses in high-risk industries tend to have higher chargebacks (returns) and cancellations. Merchant processors also see businesses in a new industry such, as search engine optimization or a peer-to-peer services, as unproven. Many processors also have moral objections to certain industries (gun stores, adult services). These traits of business land it in the high-risk category which means fees are higher to counteract any risks of handling monies involved. Examples of high-risk industries include: golf-club manufacturers (high returns), cannabis businesses (both too new and morally questionable), adult-related services (morally questionable). Low risk industries are auto repair shops, healthcare services and fast-food restaurants.




First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217


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