Top 5 Businesses Which Need High-risk Merchant Account Services

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When you run a high-risk company, you would have a problem reaching out to ordinary card processing institutions. That’s because your company comes with high risks, as the name suggests. Some of the reasons would be low credit score, failed transactions, or your specific business.

Many banks would turn off your proposal because it can affect their status. Regular and big-named financial institutions would usually cooperate with low-risk businesses, so they wouldn’t want to get involved. That’s why you would have to look for high risk merchant account services.

Finding the high-risk account services can take a lot more time and effort, but it pays off. You could gain a lot of benefits from having a high-risk account. Here are the top five businesses that need high-risk merchant account services more than ever.

1.    The weapon industry

One of the businesses that need a high-risk merchant account is the weapon industry. A lot of people use weapons for different reasons. Some shoot guns recreationally or as a form of competition, while some families use weapons for security. This job can earn you billions of dollars, especially in the US.

Since these weapons can be dangerous, they could cause potential injuries to the individual. Mishandling a firearm with a live round in the chamber can even cost the user their life. In most cases, these accidents happen to unsupervised adolescents or inexperienced users.

Because of the many risks that this industry provides, many banks don’t want to cooperate. If your other companies have a good credit score, you have a great chance of enabling the merchant account. With one, you can get FFL (Federal Firearms License), POS (Point-of-Sales), and other services as well.

2.    The vape industry

The vape industry is another one of the top high-risk businesses out there. For the last two decades, the invasion of vapes and e-cigarettes has influenced many people to leave classic cigarettes. Vaping devices come in many shapes and sizes and are very popular on the market.

No matter its success, the vape industry is still facing governmental regulations. One of the problems is that the retail rules differ in every city or state. Vape devices could serve for smoking marijuana, so there could be legal issues. There are age restrictions, which are another part of the problem.

For vape products, you would need a high-risk merchant account as well. The important thing is to be completely honest about your business. You would have to fill out the application and include your credit score, service history, and financial history.


3.    Nutraceutical companies

The main problem that affects the nutraceutical industry is the high chargeback rate. Sometimes, the companies promote the nutraceuticals in a way that can be different from an actual product. This type of advertising can disappoint the customers, which results in money returns. Another reason could be unclear instruction or a payment system. That’s why the companies could face chargeback fees too.

You have to be honest with your customers and provide them with valuable information. Also, make sure that your products are compatible with the law. You need to have a security deposit for your merchant account to make it work. That will enable merchant account services.

4.    The adult industry

For many banks, adult companies are a very questionable type of job. Because of their business type, not many financial institutions like to participate. It’s the type of business that would highly affect their reputation. The adult industry includes not only porn but dating sites, escort services, webcam chat, lingerie stores, magazines, etc. The other reasons would be an overly high cash flow rate or scams.

Usually, the most effective way to solve the account problem is PSP (payment service provider). This method can be costly, but it’s the most versatile one.

5.    Alcohol retailers

Online alcohol sales have risen enormously throughout the pandemic. However, the companies still face high risks. Although there’s an age restriction, many underages buy and drink alcohol. Other reasons are sales tax, money returns, and various city or state regulations. You need to have a decent credit score before opening a merchant account.

First off, you need to pay the minimum security deposit. By doing this, you will gain trust and reliability from the bank. When you do, you can open a merchant account, and you’ll receive payments without having to deal with inconveniences.


Finding the right bank can be nerve-racking, but it’s worth the effort. When you find a bank that works for high-risk businesses, it will serve you a long time. If you run a high-risk business, the high-risk merchant account will help your company in the long run. Hopefully, we made your options clearer.

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Master reviewer of all types of products. Love XL Fountain Sodas!! Cheer Mom extraordinaire. Socialite to all things small town and founder of Come socialize and connect with me.

One thought on “Top 5 Businesses Which Need High-risk Merchant Account Services

  • Thanks so much for the info!!

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