Prior applying for a merchant account, you must know if your business comes under low-risk. Best one-stop shop: First Card Payments. Due to the division of businesses into low-risk and high-risk merchant accounts by payment processors, this is the case. 2) High chargeback ratio. The average rates for setting up a low risk merchant accounts start from around one hundred and fifty US dollars. If the average ticket is less than $500. Definition: Low-risk merchant accounts are typically associated with businesses operating in industries that have a lower likelihood of chargebacks, fraud, or legal complications. Merchant account Visa, MasterCard, American Express for low-risk businesses is a. In order to be considered low-risk by underwriters, your business needs to meet the following criteria: Your business processes lower volume. Fastest application process: Soar Payments. Even high-risk merchants service UK businesses can start accepting card payments with our help. With a European merchant account, you’ll have access to a growing market and more customers. These risks could range from a high likelihood of chargebacks and fraud to legal. In order to process those credit card transactions though, you need a low risk merchant account with an acquiring bank. In our review of merchant services, PaymentCloud earned an overall score of 3. Have you been facing trouble for keeping a merchant account or for being approved for your business because you have been labeled “high risk”, you may also have other options. Do I have to buy new equipment in order to process with Goat Payments? No, absolutely not! As a matter of fact, GMS prides itself on having never leased even one credit card terminal. These merchant accounts generally have higher chances of fraud and chargebacks. - Accepts wide variety of high risk industries. 5 Ways to Prevent an Account Hold or. High risk merchant account fees. SMB Global. High-Risk VS Low-Risk Merchant Accounts Low-Risk Merchant Accounts. Our low-risk merchant accounts are perfect for nearly any industry, including: Convenience Stores; Specialty Retailers; Low-Risk E-commerce; Clothing Boutiques;. The total transactions they process each month are less than $20k, they do. Higher payment processing fees. During this five-year period, you cannot use your low-risk merchant account. If you own a business, you understand the value of having a dependable payment processing solution. Let’s go over the possible risk factors for a business being classified as high-risk. PaymentCloud: Best overall. The Best High-Risk Merchant Accounts of 2023. They have employment in a sector with a reduced rate of chargebacks, frauds, or refunds. Keep in mind; they will still need to have good credit, have been around for years, and have a monthly revenue of under $20,000, and do 80-85 percent of their. It should be mentioned that there are low-risk merchant accounts that can permit all the . Riskier companies may still be approved, but with. Chargeback Prevention. Square: Best for businesses that are seasonal or process less than $10,000/month. Low-risk merchant accounts are best suited for businesses with low transaction volumes or large up-front investments. How do I get a Low Risk or High-Risk Merchant Account? Our specialty is matching a business with a suitable credit card processing service in a specific geographic region. ProMerchant: Best for High-Risk Businesses. The quality that sets this company apart from its. 9% + 30¢ online. We cater our services to both high and low risk merchant services. SMB Global Overview. An online merchant is a business that sells goods and processes payments over the Internet. High-risk payment gateway Europe is a payment gateway designed to facilitate high-risk transactions for merchants and customers in the European Union. In order to be considered low-risk by underwriters, your business needs to meet the following criteria: Your business processes lower volume. 8 minutes. While the high-risk version is a bit expensive, it offers the merchant many. Payment gateways consider users with a few common traits low risk. Payline — Best for businesses looking for affordable interchange rates and who use Visa and Mastercard. 7 billion in 2018 and are expected to reach $40 billion by 2023. In-person payments cost the merchant a fee of 2. These are. $25 monthly payment gateway fee. 95%. Though, most of the process functions similarly to applying for a merchant account with good credit. 6% plus 10 cents, while the fee for a high-risk account might be 2. Your customer pays for your goods or services with a credit card using your POS equipment, a virtual terminal, or a mobile app. Low-risk rates from $99 /month and $. Currently, consumers’ most preferred payment methods are credit and debit cards. Click to get a free quote or call our experts at 888-302-8472. While low-risk merchant accounts are typically short term (sometimes even month to month), high-risk merchant accounts often run between three to five years and feature automatic renewal clauses and early termination fees. Low-risk Merchant Account. Low Risk Merchant Accounts Finding the right credit card processing and merchant account provider is critical, yet challenging, for any business. The reason is simple: Everyone in the payment chain (except for the customer) loses money in a chargeback. For low-risk merchant accounts, these fees can rack up to $15 to $50 per incident, depending on the transaction value. The business or the owner has a bad financial history. clothes, shoes, kitchenware, food. 9% for all total transactions. You have zero to low chargeback ratio. Stripe: Best for owners of multiple businesses and brands. Some of the most common businesses the platform specializes in include health and beauty, fantasy sports, financial and legal services, firearms, travel, tobacco and vape, SaaS, and SEO/SEM businesses. By partnering with QuadraPay, low-risk merchants can increase their chances of obtaining same day approval for a merchant account and enjoy the benefits of a reliable and secure payment. It offers fast and easy. Square: Best Free Merchant Account For Small Businesses. While there are many other factors involved, a low-risk merchant typically experiences low chargeback ratios, low reputational risk, minimized returns and a predictable/low amount of. merchant accounts), you’ll typically need to process $5K-$10K in monthly transactions to justify the cost. This merchant account allows the business to accept card payments but will come with additional requirements and fees. High-Risk Merchant Accounts. We chose Treati. Generally, high-risk business owners can expect credit card processing rates of 0. Low-Risk Merchant Definition. A high-risk merchant could be required to seek additional agreements, an early termination fee, or. If a merchant has a high chargeback rate. This high-risk processor will help you set up electronic payment options for. 95%. net Learn more about what constitutes a low-risk merchant A business that accepts credit cards for goods or services. A merchant with a low credit score — whether it’s because of a prior bankruptcy, a tax lien, or any other reason — will by default be classified as a “high risk” merchant, and therefore will usually be rejected for a credit card processing services by most large banks and merchant services companies. Low-Risk; High-Risk; ACH; Application; About;. When can you apply for a bad credit merchant account?Everyone can send an application, whether low or high-risk; however, the process might differ. net gateway, you also need a merchant account to fully process payments. To understand low risk merchant accounts, you’d probably see that the qualifying factors are the polar opposite to what constitutes a high risk merchant. With its expertise in high-risk merchant accounts, tailored payment processing options, competitive pricing, and excellent customer support, HMS is well-equipped to help CBD merchants efficiently and effectively process credit card payments. The primary differences include the following: High-risk merchant accounts usually require a much more extensive underwriting process before the account can be approved and you can begin accepting credit/debit card payments Corepay is a newly established merchant account provider that accepts both low-risk and high-risk merchants. The idea that a business is a low risk isn’t always about the levels of liabilities that the company poses for the payment processor. When it comes to low risk merchant accounts, typically the reoccurring monthly fees are low or minimal, but that is not the case with a high risk credit card processing merchant account. The company guarantees the lowest rates and prides itself on. - No early termination fee even for high risk businesses. In addition to the risk being more minimal than that of its high risk counterpart, a low risk merchant category is one that encompasses any business that. various factors collectively decide the risk category for a particular business. Payment Gateway & Merchant Accounts. Other examples of high-risk businesses include bail bonds, electronics, and credit repair companies. Worldwide vaping sales reached $15. 59% over interchange, while high risk rates. While they do also accommodate low-risk businesses, they are better suited to high-risk ones. LOW RATES. With experience learned through a few risky transactions, the high-risk merchant account holder will grow wiser and discern between different markets to. High-risk merchant accounts are payment processing accounts geared to businesses operating in high-risk industries and more prone to chargebacks, fraud, regulatory hurdles, and legal issues. There are many more advantages of using high-risk merchant accounts -: It offers you long-term growth opportunities. Based on various characteristics, credit card processors divide merchants as either high risk or low risk. Third, there is one more benefit, this one less obvious. The benefits of having a high-risk merchant accountAuthorize. Typically, a merchant account for credit repair is used for credit card processing and eCheck processing but can be used for a variety of payment processing needs. Based on criteria that are developed by merchant service providers, your merchant account can fall into either one of the following: High Risk and Low Risk. Due to its great track record with high-risk. You’re in an industry that is considered “High Risk”; you are in eCommerce, you run high dollar transactions, your transactions happen in the future, you have poor credit or maybe someone closed your merchant account in the past - now you need a high risk merchant account. A high-risk gateway is essential to accept credit cards and other digital payments. It is important to note that each payment processor has its own set of criteria, but there are certain qualities that are shared by all of the competitors on the market in terms of security. Usually offers tiered pricing to bad credit merchants. Our picks for the best free merchant accounts include Square, Chase, Stripe, PayPal, and more. Just use the form above, and we will email you the quick set-up procedure right away. Simply keep in mind that we determine our rates based on your monthly processing volume as well as your individual business’s risk factor, but our rates can start as low as 6. In the simplest of words, a high risk merchant account is an account that is used for payment processing by businesses that are considered to be high risk by banks. Simple application process: submitting an application for your high-risk merchant account is so straightforward. Claim your card reader. A high risk merchant account will have higher fees and stricter contract terms. Learn more about Merchant Maverick’s credit card processor rating system. If you end up with one of the 99%+ “Low Risk” Merchant Account Providers, they will handle your account the same way PayPal or Stripe would — approve the accounts quickly and close it quickly. For more information on merchant account fees, visit Genome's pricing page. It supports businesses of all sizes, offering both standard flat-rate and interchange plus pricing. Although obtaining such an account can be difficult and has disadvantages, it can provide a lifeline for such businesses. To define a low-risk merchant account, it’s important to look at the common characteristics of these accounts. in high-risk categories do so with the confidence that the reward will offset the extra hassle and expense of a high-risk merchant account. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. A low volume of transactions, just under $20,000 each month. For instance, one of the disadvantages is the fact that it might take longer to obtain one than it would in the case of a low-risk merchant account. Most Merchant account providers use specific criteria to categorize accounts as high-risk or low-risk merchant accounts. Merchants may be rejected based on the nature of bookings. 6% plus 10¢ per transaction. Friendly Client Support. Durango Merchant Services: Best for eCommerce merchants. There are other plenty of merchant account providers that comprehends the situations and offer services precisely for high risk industries & high risk businesses. You may also end up paying for a long list of services such as PIN debit network fees, payment gateway fees, monthly account fees, and more. PayPal: Best for Ecommerce. Low Risk merchant accounts allow organizations that are deemed low-risk to accept payments online and offline. One of the biggest differences between low risk vs. General characteristics of a low risk merchant account. , UK, Canada, Japan, Australia, Europe) Any country: Currency:Using a high-risk MCC can help you avoid some of the common problems that low-risk businesses face when they deal with high-risk transactions. You can access your funds with reduced processing times and minimal roadblocks with a high-risk merchant account. These industries. This gives many merchants the opportunity to fix problems from previous processing partnerships and work towards a low-risk merchant account. 8. Excessive chargebacks are a prime reason why merchants are denied payment processing services. You may also end up paying for a long list of services such as PIN debit network fees, payment gateway fees, monthly account fees, and more. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. 5% for high-risk merchants. 5% to 1% higher than low-risk processing rates, which end up ranging anywhere from 3. phone order or online. Fees for high-risk merchant account processing are generally greater than with low-risk ones. Underwriting process: The payment processor conducts a thorough review of the business’s industry, financials, chargeback history, and other relevant factors to determine the risk level. High risk merchant accounts come with higher transaction fees, stricter underwriting requirements, rolling reserves, and limited processing options. Keep reading to learn more about high-risk merchant accounts, how you may have become high-risk, and how to become low-risk by getting off the MATCH List. That said, they have the benefit of more generous transaction limits and. What is a High-Risk Merchant Account? A high-risk merchant account is one that works with businesses with a higher risk of chargebacks, fraud, or failure. Differences Between High Risk vs. How to get a High Risk Merchant Account? 1. When your business is considered one that comes with added “risks” it means that you will be categorized as a high risk merchant and therefore require a high risk merchant account. Your merchant account provider will send the transaction details through its backend processor to the customer’s card issuer . Based on our evaluation, the best high-risk merchant account providers are: Best overall (and most versatile): PaymentCloud. These charges will be higher than fees applied to low-risk business transactions, sometimes even more than twice the payment processing fee applied to a low-risk. 05 per transaction. For a high-risk merchant account instant approval, it is preferable to go for a service provider like PayCly which specializes in high-risk companies. Dharma’s processing rate for high-risk businesses is interchange rate + 1. At Corepay, we frequently get merchants approved who have had their Paypal accounts terminated as we specialize in high-risk payment processing. Another well-established provider, CorePay caters to both low and high risk merchants by providing tailored solutions that meet each business where they stand. With over a 95. This can rage anywhere from 5-20%. Full-service merchant accounts; Accepts most high-risk industries; Full line of countertop and mobile credit. 3. Industries labeled low risk have. Those who prefer to err on caution and use low-risk merchant accounts don’t have access to this resource. A new business may have to rely on high-risk merchant account services until it has enough history to qualify for a traditional low-risk merchant account. Higher transaction fees: Transaction fees for high risk merchant accounts are not cheap. To qualify for same-day merchant account approval, ensure all the needed documents are in order. Payment processors have different guidelines but have common factors around. When shopping for a check by phone merchant account, it is important that you understand how the electronic checks are processed. Merchant account fees. Merchant services companies lose money on chargebacks. This can be proven with a valid business license. A Delta 8 merchant account is a type of merchant account aimed to ease the transactional process of Delta 8 businesses. Traditional merchant accounts only accept businesses that are considered low risk with little or no chargebacks, operating in a low risk industry, and little or no history of fraud. The following are some differences between low and high-risk merchant account that you should know: Low-Risk Merchant Account. If you are a vaping merchant, you will need a. Low-risk merchant account suppliers are also available along with high-risk merchant account providers. High-risk merchant accounts exist for enterprises that cannot get approval for a traditional or low merchant account. 1. ccNetPay – Best for a simple pricing structure and EU transactions. Skip to content (877) 996-2795; Merchant Accounts; ABOUT. Keep reading to learn more about high-risk merchant accounts, how you may have become high-risk, and how to become low-risk by getting off the MATCH List. Here’s what you might pay if you choose to sign up directly with Authorize. Low-risk merchant account. In most cases, a high-risk merchant account can be approved within 3 to 10 business days of a complete application packet being submitted to underwriting. Not only that, it also has acquired bank partnerships, skills and a good reputation to help your high risk business acquire a merchant account. Usually, it is provided in combination with a high-risk merchant account. Level 3 processing is easy with the PayKings high risk payment gateway. eMerchant Authority is the leader in payment processing for high-risk merchants. EMB has made it their responsibility to offer a range of local and offshore merchant accounts to all low risk and high-risk merchants. A merchant account is a contract between a company and a financial institution that allows the company to accept. Low-, high-risk, & international merchant accounts; eCheck processing; Support for POS, online, & mobile transactions; Fraud protection services;. For instance, you can benefit from higher approval. If business owner looking for a Secure Merchant Account follow these steps: Create a Business Required Strategy. Since high risk businesses are more likely to experience chargebacks, they have to pay higher fees for the merchant services. Here are the major differences between low risk and high risk merchant accounts. Merchant accounts for high-risk businesses are more dangerous for banking systems to operate with. Interchange + 0. We offer custom-tailored solutions to merchants in the CBD oil industry that need a payment gateway for selling their CBD products in an online market. 9% fee plus $0. Durango Merchant Services: Best for highest-risk businesses. Low Risk Merchant Account. Luckily, while the process to get one is a little more complicated, there are many benefits to a high-risk merchant account. Advantages and Limitations of Stripe as a Merchant Account Provider. Each merchant service provider received a rating based on over 50 data points. Easy Pay Direct is a payment gateway and merchant account provider that serves a wide variety of high-risk and low-risk industries. Compared to a regular account, a high-risk merchant account will have the following. The following are additional requirements of low-risk merchants: Credit card transactions are usually $500 or less. Has consistent revenue streams all year round. If you operate a high risk business, you will need to reach out to a high risk merchant provider, while low risk businesses can typically pay lower rates. 1) Online payments where the purchase is made via the Internet and not at a physical store. If the business accepts only one type of currency. 6. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. Treati. Online payment processors fall into two categories: With direct processors (a. However, the company specializes in serving the high-risk community, accepting a very wide variety of industries that ordinarily struggle to get approved for credit card processing. Why Some Businesses Need a High-Risk Merchant Account to Use an Authorize. The business is in a low risk industry. As your Store starts to get hit with chargebacks, your fees significantly increase and can get your merchant account frozen or terminated, especially when working with low-risk processors such as Shopify Payments/Stripe. Low-risk merchant account. The biggest, and most obvious, difference between a traditional merchant account and a high risk merchant account is the risk level they accept for their services. Many acquiring banks in the US consider merchants looking for offshore merchant accounts as high-risk clients. ”. Best for online and international sellers: Durango Merchant Services. High risk rates as low as blended 2. To open a merchant account, the business has to be legitimate. Maximize approval ratios based on your target customer base. No advantage or low cost is worth it if a provider does not offer adequate customer service. processing application (MPA) that is signed and completedHigh-risk merchant accounts allow risky business ventures to take credit/debit card payments from customers. The terms of the contract may vary from provider to provider, but at the core of the agreement, they are covering their bases. There are no application or setup fees when signing up for an account. Our payment experts approve 99% of low and high-risk merchants for full-service payment solutions, becoming the #1 provider for payment processing, funding, and so much more. High Risk Merchant Account – Get Approved in Under 24 Hours. Payment Depot: Best for High Transaction Volume. Hence, its functioning is a little bit different from the usual low-risk merchant accounts. Which you prefer for order and transactions i. 08-$0. Industry is considered low risk e. Low-Risk Merchant Accounts Differences in Processing, Fees, and Restrictions. Because perceived risk is subjective, there’s no concrete definition for what constitutes a low-risk merchant. This includes the merchant, the credit card company, and the bank that issues and finances the card. Applying for Your Merchant Account. If the business has low to zero chargebacks. EMB offers services that include chargeback mitigation. These businesses often operate in industries that, for various reasons, carry a higher level of risk. Your average ticket size is significantly less than $50. Open a business bank account. To determine if your offshore merchant account is high or low risk, consider factors such as your industry classification, chargeback rates, compliance history, and financial stability. Signing up for NMI: 2 types of website owners. Based in France, Corepay has recently expanded its reach to the US. On the other hand, high-risk merchant accounts deal with high-risk items like cannabis, tobacco, firearms, airplane tickets, virtual currencies, and pharmaceuticals. Excessive chargebacks are a prime reason why merchants are denied payment processing services. Low-Risk Merchants Explained. Since you open a. A high-risk merchant account operates as a specialized business account for high-risk businesses. With a CBD payment processor that fits your. Reason being, merchants in our payment processing world come under low-risk, medium-risk, and high-risk categories. PaymentCloud: Best For High-Risk eCommerce Businesses. As high-risk merchant accounts tend not to have as competitive terms as low-risk, we considered factors like a breadth of features, ease and cost of sign-up, and contract terms. It is the acquirer’s responsibility to monitor a merchant’s compliance and ensure thatIn contrast, low-risk businesses tend to have lower credit risk and fraud risk, which makes it easier to get financing. Read our Review. The criteria that merchant account providers use to classify businesses according to the level of risk that they pose are different for each type of merchant, but there are certain aspects that are common to both types. A high-risk merchant account will accept the risk and allow you to process. Some examples of low risk industries for credit card processing include: Retail: Physical stores that sell tangible goods, such as clothing or. With the use of an Authorize. Low-Risk Merchant Accounts vs High-Risk Merchant Accounts. 95%. [1] Statista. High-risk merchant accounts are just as useful and beneficial as their low-risk counterparts. Check by phone merchant accounts are available to businesses in all types of industries. A high-risk merchant account is a label your payment processor has given your business. Our team will go over your documents, and you can start accepting different payments. but merchants need to read the fine print: this service comes at a price. Low-risk businesses are easier for merchant service providers to trust. 2. Low risk merchants are not usually required to set aside a reserve fund unless they have a low credit score. Low Risk. 3. Your merchant account provider will send the transaction details through its backend processor to the customer’s card issuer . While the vaping/e-cigarette industry is highly profitable, banks and credit card processors also consider it high-risk. There are several criteria to determine the risk level of a business: high transaction volume, international payment (geographic location. Most of the merchants in the E-Commerce industry are challenged to keep the balance between the increase of revenue and fraud levels. The other way that payment processing services hedge against risk is to require high-risk merchants to maintain. This means, there is ongoing risk monitoring that is associated with all low-risk merchant accounts. unique tool that allows you to efficiently process payments online. You might get a rate of about 0. You can expect to. That is probably the most unpopular pricing model, but it’s hard to avoid. 2. Dharma: Best for Transparent Pricing. Low-risk merchant: High-risk merchant: Average monthly sales volume: less than $20,000: over $20,000: Average credit card transaction: less. In addition to the features and services already mentioned as part of the high-risk merchant accounts, 5 Star Processing also offers the following notable features. However, Corepay is here to help, by using our many years of expertise and. While low-risk merchants must pay the chargeback fee, high-risk merchants must pay a larger chargeback fee. Prior applying for a merchant account, you must know if your business comes under low-risk. Have a zero to low chargeback ratio. A high-risk merchant account has the same features and functionality as a traditional, low-risk merchant account. The company specifically markets. Here’s how this process works: 1. Low Risk Merchant Account. We accept most legal high-risk merchants industries. If you own a high-risk businesses you are susceptible to chargebacks. Get Accepted for a merchant account via our easy online application with the leader in merchant accounts for. Easy Pay Direct. Read More. To qualify for low risk merchant accounts, your business will fit the following description: You process less than $20,000 per month; Your average ticket size is less than $50; Zero to low chargeback ratio; You operate within a low risk industry; You are incorporated in a low risk country The Difference Between Low-Risk & High-Risk Merchants. To get a high-risk merchant account, you need to go through several stages: 1. Every bank and provider uses a different set of criteria to assess the. your business’s features. The merchant account provider will likely approve your application if your business history and transaction type make you a low-risk option. High-Risk VS Low-Risk Merchant AccountsLow-Risk Merchant Accounts. Square Merchant Services: Best for Startups. g. Banks use more resources and face higher risks when onboarding unique businesses. Obtaining a merchant account with bad credit requires multiple steps. Again, it all comes back to that one word: risk. 1. High-Risk Merchant Account vs Low-Risk Merchant Account. Low-risk merchant accounts are designed for businesses that have a consistent volume of sales, low returns/chargebacks, and are in well-established. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. Genome's fees for some services differ for low-risk and high-risk accounts. If a merchant has a high. Certificate of incorporation. Interchange + 0. The merchant account acts as the middleman between the. A high-risk merchant account is a type of business account offered by a payment processor or a bank, designed specifically for businesses deemed “high-risk. You’ll likely pay higher in merchant account and payment processing fees. While low-risk retail and ecommerce merchants can pay as low as $10 per month, high-risk merchants should expect to pay an average of $25–$45 monthly. For example, ecommerce brands can expect to pay 4% per transaction while dating sites are looking at 6% and IT support 10%. Working with the low-risk business is more secure, as the low-risk merchant account is safer in terms of chargebacks, potential fraud events, business credit history, and so on. A high risk merchant poses more of a financial risk to the processing company. Fees are the main tangible difference between a high and low risk merchant account. If a high-risk business uses a low-risk merchant account, they may experience: Violation of terms; Increased scrutiny; Chargebacks and penalties; Legal consequences The Best Merchant Account Service Providers of 2023. In general, the low-risk merchant account is cheaper than the high-risk merchant account because a low-risk merchant account comes with many restrictions. Reduction in Processing Delays. 08-$0. , subscription payment models, gambling sites). Low-risk merchant accounts tend to enjoy more privileges, such as lower processing fees for every transaction and the ability to negotiate for more favorable pricing and contract terms. On the other hand, low risk merchant accounts. Low Risk High Risk; Chargeback rate: Under 1%: Over 1%: Average ticket size: Under $500: Over $500: Sales volume: Under $20,000/mo:. As one of the most trusted merchant account providers available, Payment Cloud has serviced hundreds of popular high-risk merchants. net offers credit card payment services for more than 430,000 merchants, including merchants that could be categorized as high-risk. Merchant Accounts with High Vs. However, you can also use the EPD. Though, high-risk merchants need to pay extra than the traditional merchants. Meanwhile, businesses with low or moderate risk are less likely to be targeted for cancellations and other types of deception. many high-risk merchant account providers will have the resources and expertise to help you avoid future account holds, freezes, and terminations. Typical reasons for this label is that your account is considered to be at a higher risk of fraud, chargebacks, or a high number of returns. The short answer: A high-risk merchant account is the solution to a high-risk business’s payment-related problems. Moonlight Payments Overview. Merchant services allow businesses to accept credit and debit card payments. Low-risk merchant accounts also have low chances of fraud and minimal sale amounts. A reserve, in simple terms, is a security deposit for the acquiring bank, and its goal is to protect them from potential risks associated with your merchant account. What Is A High-Risk Merchant Account? A payment service provider can make the determination if a business is a high risk if they have a higher than. The industry is low-risk; Transactions are less than $20,000 per. However, high-risk nonprofits may still be able to get the ETF waived.