High Risk Merchant Accounts


MagicPay’s High Risk Merchant Account Service is one of the most affordable high risk merchant accounts in the USA. If your business is considered a High Risk Business, you need to apply for a high risk merchant account in order to safely and legally secure payments from your customers or clients.

What is a high risk merchant account?

A high-risk merchant account is a type of payment processing account for businesses that is considered high-risk by banks. Having a high-risk merchant account allows your business to accept credit card payments for the sale of your goods or services. This is also known as high-risk credit card processing. Generally, the main factor that makes a business high-risk is their chargebacks. The more chargeback, the higher the risk. To be considered high-risk merchant by banks, your business has the following characteristics:

  • Average monthly sales volume of over $20,000.00
  • Average credit card transaction higher than $500.00
  • Accepts multiple currencies
  • You have bad credit and excessive chargebacks
  • Your business sells products or services that has high level of fraud

Note that the following characteristics vary based on different payment processor guidelines.

It is important to understand that not all banks would like to work with any industry and therefore it is our job here at MagicPay to find the bank that will work with your type of business. You can set up a high-risk merchant account anywhere in the USA with our help and together let’s make your business running smooth.

What kind of accounts are considered high risk?

Although certain industries (listed below) are considered high-risk, some industries that may be on the “safer side” may still be considered by some banks to be high risk, and that may be due to previous bankruptcies the owner of the firm may had in the past, unsatisfactory credit history, length of company in business and so forth. So, shortly, even businesses that most banks consider low risk may be considered high risk in some cases due to the individual situation of each company.

High Risk Merchant Accounts

Below is a list of industries that are considered high risk by some major banks and financial institutions.

Education Online

Health & Beauty
Hotels / Motels
Membership Clubs
Money Service Business (MSB)
Mortgage Modifications
Natural Health
Network Marketing
Online Dating
Online Gun Accessories
PC Support
Penny Auction
Poor Credit Merchant
Real state rental
Software Downloads
Stock Trading
Travel Agency Retail Bookings
Vacation Home Rental

Merchant Services Blog