What a High Risk Merchant Processor Can Do For You

High Risk Merchant Processor

The term “high risk” is a type of merchant account given to a business that payment processors deem to be at higher risk of fraud and chargebacks. This often makes it difficult for high risk merchants to find a payment processor suited to their needs. Fortunately, they’re out there.

First Direct Financial is an industry-leading high risk merchant processor whose services are designed to meet every business’s needs. We partner with everyone from CBD companies and retailers to hospitality and healthcare providers. It doesn’t matter if you are considered low risk or high risk, we’ve always got your back. Read our blog post below and learn how our payment processing services can help you reach new heights. 

What is a High Risk Merchant Account?

As mentioned, a high risk merchant is seen as potentially vulnerable to fraud and chargebacks. Banks view these businesses as hazardous partnerships and oftentimes will either refuse any service to them or provide high payment processing fees. While it is understandable why they would do this from a business standpoint, your business deserves a fighting chance. 

Signs That You Need a High Risk Merchant Processor

High risk merchant processors are your best bet for receiving the best possible payment processing fees. Certain processors, like First Direct Financial, are willing to take a leap of faith with you to ensure you have the support you need to succeed. Here is a basic breakdown to determine if you may be considered high risk.

  • You do not have a spotless financial history: if you have ever had a standard merchant account that was terminated or had an account application be rejected for any reason, your chances of being approved for another is slim.


  • You’re in a “High Risk” industry: examples include CBD companies, travel services, annual membership services, retailers, hospitality, restaurants, healthcare, etc.


  • You experience high rates of chargebacks: When you see excessive chargebacks for a standard merchant account, it usually results in account termination.


  • You sell high-ticket items or recurring subscriptions: large sum purchases are often an attribute you see in fraudulent transactions. This makes payment processors nervous as if it turns out the transaction is fraudulent they may be held liable.


What Can a High Risk Merchant Processor Do For You?

There are many responsibilities and things to consider when running a business, especially if you are considered high risk. However, when you partner with a reputable high risk merchant account you can expect some advantages.

For one, a partnership with this type of payment processor can help grow your business performance by accepting transactions in different currencies around the world. Additionally, they help build your reputation for secure purchases online and in-store.

Another advantage to partnering with a high risk merchant processor is how we protect you from chargebacks. While a normal payment processor may terminate your account after you have crossed their chargeback threshold, we won’t. Instead, we work with you to manage your chargebacks. You will never have to worry about your account being closed again.

Probably the most important thing to any business is increased profits. As a high risk merchant, you look for increased revenue to open new opportunities for your business. By receiving lower processing rates than you would from a traditional processing account, you will save money that can go back into your business. 

First Direct Financial is YOUR High Risk Merchant Processor

First Direct Financial maintains a large network of representatives nationwide. We keep strict guidelines on all staff to ensure our clients receive the best merchant services possible. From data protection and credit card processing to depositing, we’re there for you every step of the way. Contact us today and learn how we can help your business make transactions easier.