6% plus 10 cents, while the fee for a high-risk account might be 2. 95% per transaction on average plus a $0. A low-risk merchant may need to meet many requirements; however, the most important are: low revenue, few transactions, and low chargebacks and returns. Our team will go over your documents, and you can start accepting different payments. If you already have a merchant account, we can set up an NMI payment gateway only account for you ASAP (usually the same day). Flagship Merchant Services: Best. Credit card processing fees are higher. Here’s how this process works: 1. 5 Best POS Systems For Gyms To Get More Members In 2023 - August 5, 2022. These include reduced fees and less of a need. High-Risk Merchant Account vs Low-Risk Merchant Account. Some examples of low-risk merchant accounts are gas stations, grocery. 9% + 30¢ online. High-Risk & Low-Risk Merchant Accounts: While Corepay can also place low-risk merchants, its specialty is in providing merchant services to businesses that are deemed to be in a high-risk category. A low-risk merchant account needs to meet many requirements, including a smaller number of transactions, low chargebacks, and low revenue. It also includes enterprises where client payment details have an increased risk of exposure. Some stand out for accommodating high-risk merchants, while others sell a variety of POS systems and card readers, or integrate with popular business apps. An offshore merchant account is similar to an international merchant account. We cater our services to both high and low risk merchant services. Call Us: (213) 267-6848. Before reaching merchant services, Recognize some circumstances: Should be looking which payment type preferred by customers. If business owner looking for a Secure Merchant Account follow these steps: Create a Business Required Strategy. Such businesses are in industries that see minimal chargebacks, fraud, or returns due to their lower risk factors, making them an attractive option for payment processors. A low-risk merchant account needs to meet many requirements, including a smaller number of transactions, low chargebacks, and low revenue. The Best High-Risk Merchant Accounts of 2023. Low Risk merchant accounts allow organizations that are deemed low-risk to accept payments online and offline. This ecommerce store transacts through a virtual terminal and payment gateway. Offers Paysley QR-code payment service. You recommend contacting your account provider and discussing these factors to clarify the risk level assigned to your account. Industries labeled low risk have. A high-risk gateway is essential to accept credit cards and other digital payments. Medium and Low Risk Merchant Accounts. SMB Global Overview. Stripe is one of the leading merchant services providers out there. Customers add products and enter their payment details to pay for their orders. Without a high-risk merchant account, ecommerce businesses eventually may face the risk of. PaymentCloud: Best for High-Risk Businesses 5. We have partnerships with over 25+ processors worldwide, and can place. A high-risk merchant account means payment processors and card networks view the company as being more likely to default on its payments, suffer high levels of chargebacks, or even commit fraud. Industry is considered low risk e. 7 billion in 2018 and are expected to reach $40 billion by 2023. With a CBD payment processor that fits your. A rolling reserve that can be held for up to 180 days (or longer in some cases) after account closure. 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. National Processing. WebPays has high-risk merchant account solutions for nearly any high-risk merchant. Low-risk merchant accounts, on the other hand, have these characteristics: Only accepts one type of currency; A payment service provider hosts their payment page; Their average credit card sale is under $500; Their average monthly sales volume is under $20,000; Their business only sells low-risk products/items such as. PayPal: Best for Ecommerce. To qualify for low risk. Zero or low chargeback ratio. If you own a high-risk businesses you are susceptible to chargebacks. Banks categorize businesses into three main groups: high-risk merchants, medium-risk merchants and low-risk merchants. Initially, you are required to pay the initial setup cost whether you are a high-risk merchant or a low-risk merchant. These industries. This special registration fee is only required for businesses in high-risk industries. There are no application or setup fees when signing up for an account. And with evidence showing that 75% of eCommerce businesses saw an increase in fraud attempts in 2021, it’s more important than ever to understand high-risk transactions, as. 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. A high-risk merchant account is for businesses that operate in high-ticket industries with increased risks of fraud and chargebacks. Low-risk merchant accounts get month-to-month agreements with no early termination fees, while high-risk accounts may have to sign a two-year contract and an ETF. This label is often due to the. Low-Risk Merchant Accounts. A low-risk merchant is one that: Trades in fairly modest volumes. Dharma’s monthly fee is $20 per month. Best one-stop shop: First Card Payments. 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. io as our favorite online credit card processor for cannabis and CBD vendors due to its willingness to work with these merchants when many providers will not. account, so you can focus on the best processing options that match System used to track merchants in order to manage risk. io does accept high-risk businesses as well. Additionally, if. The E-COMMERCE BROKER company helps to register a merchant account for Visa, MasterCard, American Express, and for a number of other brands of plastic cards and payment wallets. Where such a high-risk account is involved, banks tend to be hostile, and such industries are almost completely barred from opening accounts. Average card transaction is below $500. Learn about the best business loans for bad credit, so you can get the funding your business needs, even if your credit score is poor. In the beginning stages of getting operations for your company up and running, there are many business owners who initially don’t even realize that their. There are two main types of merchant accounts: a general purpose and a specialized merchant account. A high-risk gateway is compatible with. However, you’ll run a lower risk of account freezes and holds. e. com. If you are a merchant with a history of a lot of chargebacks your payment processor may want a. Our experts at Salus Payments recommend trying to keep your chargeback ratio less than 0. A high-risk merchant account is a specific type of payment processing account that is required for certain businesses. Other examples of high-risk businesses include bail bonds, electronics, and credit repair companies. 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. Corepay is a domestic and offshore merchant account provider for both high-risk and low-risk businesses, advertising its services to the adult industry, CBD and hemp vendors, eCommerce merchants, online dating services, and other business categories considered high-risk. Define your project needs. While high risk merchants are businesses dealing with larger transactions of over $20,000, low-risk merchants are small business owners earning less than $20,000. Best for high-risk retail businesses. 3. 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. A merchant account is a type of business bank account that allows businesses to process electronic payments such as debit and credit cards. Allowing businesses to accept payments on their own terms, Authorize. With a low-risk merchant account, business owners not only get instant approval but also pay substantially less for merchant account services. 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. io is a newly-established merchant account provider that caters to both high-risk and low-risk US merchants. Excessive chargebacks are a prime reason why merchants are denied payment processing services. 1) High-risk merchant accounts. 10 per transaction (low-risk accounts) Processing rates vary by the acquiring bank/back-end processor (high-risk accounts). If you opt to use Square for online sales, you can expect to pay a higher rate of 2. Tiered pricing usually offered to bad credit merchants. Your merchant account provider will send the transaction details through its backend processor to the customer’s card issuer . Processors may charge different fees, require different reserves, may vary the terms and conditions, or have different application processes depending on the risk category. 95%. Low-risk merchant account. However, for business owners looking for the best high-risk merchant accounts with bad credit, you might want to consider Electronic Cash Systems, PaymentCloud, Payment Depot, Durango Merchant Services, Soar Payments,. Because perceived risk is subjective, there’s no concrete definition for what constitutes a low-risk merchant. g. Higher transaction fees: Transaction fees for high risk merchant accounts are not cheap. Simple application process: submitting an application for your high-risk merchant account is so straightforward. This label is often due to the. On the other hand, low risk merchant accounts. Low-Risk Merchant Accounts vs High-Risk Merchant Accounts. 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. Other features may include check processing services, online account reporting features, services to make sure your account is PCI Compliant and a lot more. Compared to a regular account, a high-risk merchant account will have the following. High-risk merchant accounts belong to businesses with a significant likelihood of getting chargebacks after a transaction. This is why eMerchant offers same-day approval for low-risk merchant accounts. Because of risk levels, either real or perceived, banks, financial institutions, and credit card companies would rather avoid working with high-risk. low-risk merchantsBelow are the distinctions between a low-risk merchant account against a high-risk merchant account. Nov 19, 2023Learn more about what constitutes a low-risk merchant A business that accepts credit cards for goods or services. 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. Merchant account Visa, MasterCard, American Express for low-risk businesses is a. 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. Full-service merchant accounts; Accepts most high-risk industries; Full line of countertop and mobile credit. Ongoing Support. Low-risk rates, as low as $99 per month and $. The main difference between a high-risk merchant account and a low-risk merchant account is that the former operates in scenarios that are deemed to be extremely risky as outlined above. You need a partner that truly understands your industry, provides transparent and competitive rates, and helps maximize your revenue potential. No monthly minimum (low-risk accounts) Interchange + 0. It also has a strong. 78 out of 5. Read our Review. Compared to a regular account, a high-risk merchant account will have the. You can do it online and without waiting. Square: Best Free Merchant Account For Small Businesses. Low-risk merchant accounts are less expensive and have fewer requirements, but are only available to businesses in low-risk industries. Though, most of the process functions similarly to applying for a merchant account with good credit. Hence, its functioning is a little bit different from the usual low-risk merchant accounts. A low-risk merchant account, among other things, usually has these characteristics: They accept only one type of currency. You can expect to get the low-risk merchant account within a day. Fees are the main tangible difference between a high and low risk merchant account. 08-$0. Low Risk Merchant Account. 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. Low-risk merchant accounts are best suited for businesses with low transaction volumes or large up-front investments. your business’s features. It supports businesses of all sizes, offering both standard flat-rate and interchange plus pricing. A high-risk merchant account is a specially designed payment solution that enables businesses in high-risk industries to accept card and electronic payments. Many also offer additional tools such as payment gateways, virtual terminals, and point. We provide merchant account services for both low and high-risk businesses. The high risk gateway services. Here's a rough guideline to help you differentiate between a high risk and low risk business. Square. No advantage or low cost is worth it if a provider does not offer adequate customer service. , those with both physical and digital storefronts), Moonlight addresses the unique challenges faced by businesses in sectors like. Processes less than $20,000 monthly. Our low-risk merchant accounts are perfect for nearly any industry, including: Convenience Stores; Specialty Retailers; Low-Risk E-commerce; Clothing Boutiques;. 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. You need a partner that truly understands your industry, provides transparent and competitive rates, and helps maximize your revenue potential. 2) High chargeback ratio. Payment processors that offer high-risk merchant accounts understand the unique challenges faced by high-risk merchants, such as an increased likelihood of chargebacks or fraud. 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. This gives many merchants the opportunity to fix problems from previous processing partnerships and work towards a low-risk merchant account. 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. Merchant account fees. 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. The first thing most merchants will notice is higher fees. On the other hand, high-risk merchant accounts deal with high-risk items like cannabis, tobacco, firearms, airplane tickets, virtual currencies, and pharmaceuticals. Here are the best international merchant services that provide international payment processing, international payment gateways, and international merchant accounts for a variety of circumstances. It would be best if you didn’t overpay for services you do not use. com may open an account for a company and close it after a few. Square. 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. Here’s our list of the best merchant. Low-, high-risk, & international merchant accounts; eCheck processing; Support for POS, online, & mobile transactions; Fraud protection services;. Here are the major differences between low risk and high risk merchant accounts. Low-risk rates from $99 /month and $. Your merchant agreement will depend on whether or not your nonprofit is classified as high-risk. ) When evaluating a high-risk business, merchant service providers must review the merchant application, conduct a thorough risk assessment, and check the business owner’s credit score. For more information on merchant account fees, visit Genome's pricing page. High risk merchant account fees. Ultimately, this results in downtime while they resolve the issue. High-risk merchant account providers and general processing companies follow various measures to reduce the risk. You can request more information by filling out the form on its website. A low-risk payment provider (like PayPal) charges its ecommerce users a 2. Gspay. Get a free card. 2. Certain industries are labeled as high-risk – operating under more stringent regulations with substantially higher transaction costs (e. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. g. If the business has low to zero chargebacks. Payment Depot: Best for Low Fees; Chase Payment Solutions: Best for E-commerce Businesses;. Even though low-risk merchants also pay a chargeback charge (an expense you pay when a client disputes the charge directly using the credit card they use) However, high-risk merchants usually have higher charges for. A low volume of transactions, just under $20,000 each month. 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. The bank will then process your application and determine your merchant account fees. High-risk businesses are also more likely to have returns, refunds, and chargebacks. Transaction processing rates are notably higher than the company’s low-risk rates, but the lack of account fees makes it a great alternative to getting a traditional high-risk merchant account. Our team of experts is here to support you every step of the way. 5% for high-risk merchants. The reason is simple: Everyone in the payment chain (except for the customer) loses money in a chargeback. 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. Read More. Low-risk accounts usually benefit from lower prices because they demand less work from payment processors. If you’re considered a “low risk” merchant, that’s good news! You can expect to have significantly more choices of merchant account providers than your “high risk” peers. You have zero to low chargeback ratio. Only one type of currency is accepted. Payment processors will categorize your company as low risk when: Your company brings in less than $20,000 per month. Only one type of currency is accepted. Your average ticket size is significantly less than $50. This can be proven with a valid business license. If you are the owner of a small or medium business in online retail, games, IT, digital content or non-profit sector, then EU Merchant Account will help you open a special “Low/Medium Risk Merchant Account”. 1. Low-Risk Merchant: High-Risk Merchant: Average monthly sales volume: Less than $20,000: Over $20,000: Average credit card transaction:. Staying on top of any requests for supporting documents. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. In the world of merchants, the ability to process. All low-risk Host Merchant Services accounts come with month-to-month billing, but high-risk merchants may have to agree to a long-term contract, in some cases. Once we have placed your business with a suitable high-risk banking partner, we will work with you to. Apply. The first thing most merchants will notice is higher fees. 25 transaction fee. 10 processing fee per transaction (exclusive of any fees charged by your merchant account)The most obvious downside to needing high-risk merchant accounts is the higher rates. GSPAY is a little-known high-risk merchant account provider that offers a variety of fixed rates for different types of businesses. With experience learned through a few risky transactions, the high-risk merchant account holder will grow wiser and discern between different markets to. Dharma Merchant Services: Best for merchants who process more than $10,000/month. 9% for all total transactions. However, ProMerchant’s pricing is considerably lower than Clover’s. CorePay. 30% + 10¢ per online and in-person transaction versus Clover’s 2. High-risk vs. 10 per transaction (low-risk accounts) Processing rates vary by acquiring bank/back-end processors (high-risk accounts) $15/month account fee (low-risk accounts). 1) Online payments where the purchase is made via the Internet and not at a physical store. net: All-in-One Solution. Opening a merchant services account can require a number of documents to help the bank and its underwriters determine both the business and the. The company specializes in merchant accounts for high-risk businesses. 1. A merchant account is a specific type of bank account that allows merchants to accept payments. Best for chargeback monitoring: SMB Global. ”. Still, high risk merchants have different requirements than low or standard risk merchants. Almost any high-risk industry can apply for a merchant account with SMB Global. Select A High Risk Merchant Account If an account has been opened under false pretenses or the business model. 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. Banks use more resources and face higher risks when onboarding unique businesses. Signing up for NMI: 2 types of website owners. They partner with Payline Data who is maybe a better choice for low-risk companies. Payment Gateway Only. [1] Statista. Treati. Even though the criteria might differ from one provider to another, there are some fundamental. If the business accepts only one type of currency. ProMerchant: Best for High-Risk Businesses. Show Summary. Whether you’re a low or high risk business model, we’ll help you speed up the. High-risk merchant accounts typically have higher processing fees to compensate for the risk the payment processor takes on while working with the account. Best for chargeback monitoring: SMB Global. 05 per transaction. What is a High-Risk Merchant Account? According to Nerd Wallet, a high-risk merchant account is required if a business with a greater risk of fraud or chargebacks — or with certain other. Higher risk accounts may have to implement more stringent verification processes or pay higher transaction rates in order to accept payments. As compared with a high-risk merchant account, low-risk accounts often. You are incorporated in a low risk state. In the world of merchants, the ability to process credit card transactions is vital to the survival of your business. There are several criteria to determine the risk level of a business: high transaction volume, international payment (geographic location. Best for online and international sellers: Durango Merchant Services. Most Merchant account providers use specific criteria to categorize accounts as high-risk or low-risk merchant accounts. High-risk merchant account providers that accept travel businesses generally do not disclose their prices, relying instead on a. This is because acquiring banks are taking on the added risk of processingThe merchant sells to countries that have a high level of fraud. Lower risk of account termination. Payment gateways consider users with a few common traits low risk. Based in France, Corepay has recently expanded its reach to the US. High-risk merchant accounts attract more stringent conditionalities than regular merchant accounts and are more expensive to manage. It also involves continuous management of your payment processing solutions and making the appropriate adjustments along the way. Ultimately, this results in downtime while they resolve the issue. 1. On the other hand, low risk merchant accounts. High risk processors won’t terminate the account for just being in a high risk industry; Ability to sell high risk products and subscriptions. Fastest application process: Soar Payments. A high-risk merchant account can have a rolling reserve feature to protect against chargebacks or fraud. 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. Again, it all comes back to that one word: risk. Running high-risk sales on your lower-risk merchant account will often result in funds being held. g. Albeit new to the industry, CorePay has effectively worked with countless merchants by providing polished merchant account services that put safety, security, and efficiency. With over a 95. A high-risk merchant account will accept the risk and allow you to process. High-risk transactions refer to credit card payments associated with significant risks of chargebacks, fraud, and other potential issues, like money laundering. Getting approved for a high risk merchant account. 2) Chargeback ratio is low to nothing. Some of these include: 541990 - All Other Professional, Scientific, and Technical Services. High-risk merchant accounts are just as useful and beneficial as their low-risk counterparts. So these are some differences between low and high-risk merchant accounts that you should know: Low-Risk Merchant Account. 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. The payment gateway high risk business will differ from low-risk businesses in terms of cost and processes involved. Reason being, merchants in our payment processing world come under low-risk, medium-risk, and high-risk categories. Here at Shark Processing, our sole focus is securing low-cost, low-risk merchant accounts tailored […] Your business’s merchant account will be categorised as high or low risk depending on your industry, transaction values, chargeback history, and potential exposure to fraud. All according to this analysis your application is either. In order to be considered low-risk by underwriters, your business needs to meet the following criteria: Your business processes lower volume. 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. Shark Processing LLC offers high-risk merchant accounts and payment processing services. While the high-risk version is a bit expensive, it offers the merchant many. Check by phone merchant accounts are available to businesses in all types of industries. Step 1 — the first step of the merchant account process involves a transaction made by the customer. In Summary: 5 Best Bad Credit Merchant Account Providers. Clover: Best for POS. The long, technical, boring answer: A merchant account is a type of bank account in which transaction funds sit until final settlement, at which point processing fees are deducted and funds are transferred to the merchant’s. 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. Differences Between High Risk vs. high risk merchant accounts is the amount of fees. To define a low-risk merchant account, it’s important to look at the common characteristics of these accounts. 2) low-risk merchant accounts. Additionally, a business with a heightened likelihood of fraud would be marked as high risk. As is typical of the high, medium, and low-risk merchant account providers, Goat Payments doesn't disclose fees on its website. 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. 800-567-3019. Best one-stop shop: First Card Payments. You can access your funds with reduced processing times and minimal roadblocks with a high-risk merchant account. Low-risk merchant: High-risk merchant: Average monthly sales volume: less than $20,000: over $20,000: Average credit card transaction: less. While low-risk merchants must pay the chargeback fee, high-risk merchants must pay a larger chargeback fee. Our highly skilled team has merchant accounts for businesses with processing volumes ranging from $20,000-$100,000,000 and up per month. A voided check, or other proof of bank accounts such as a signed bank letter or barring that, your bank’s routing number and your bank account number. This includes the merchant, the credit card company, and the bank that issues and finances the card. . 3) Industry is considered low-risk, such as retail. Treat. Some businesses have to pay high fees rather than others. Because of risk levels, either real or perceived, banks, financial institutions, and credit card companies would rather avoid working with high-risk. High-risk merchant accounts support online payments worldwide, which could increase revenue and growth. Certificate of incorporation. A voided check, or other proof of bank accounts such as a signed bank letter or barring that, your bank’s routing number and your bank account number. It can also include. Soar Payments provides merchant accounts for diverse industries, including solutions for high, medium, and low-risk businesses. The average rates for setting up a low risk merchant accounts start from around one hundred and fifty US dollars. High-risk merchant accounts exist for enterprises that cannot get approval for a traditional or low merchant account. 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. A team of high-risk analysts or an individual analyze your business to find out any type of risk. This can rage anywhere from 5-20%. Riskier companies may still be approved, but with. High-risk processors will be able to guide you on ways to reduce your chargebacks and keep your fees low. Instant approval hardly means instant for high-risk merchant accounts. 9% plus 30 cents per transaction. . PaymentCloud is a merchant services provider. Reduction in Processing Delays. , Canada, Japan, Australia and the countries in. Worldwide vaping sales reached $15. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. Merchant Accounts with High Vs. A subsidiary of Visa, Authorize. All businesses need merchant accounts in order to accept credit and debit card transactions. In the United Kingdom, it is roughly 3. Help us determine which bank is best suited for your business by giving us a complete picture. High Risk Merchant Account – Get Approved in Under 24 Hours. In contrast to a low-risk merchant. Treati. If you qualify for a high risk merchant account, expect to pay slightly higher fees. High risk merchant account providers can make it possible to set up an account after a day or two. One of the biggest differences between low risk vs. Our process is simple so you can focus on your business. PaymentCloud: Best For High-Risk eCommerce Businesses. Not only that, it also has acquired bank partnerships, skills and a good reputation to help your high risk business acquire a merchant account. The provider may approve riskier applications but at a higher fee. SMB Global. net is a payment gateway company that provides payment processing options for businesses, especially small and independently-owned businesses. Operating in a low-risk field like book sales, apparel retail or medical services; Businesses that are considered to be low-risk by payment service providers can get fair rates, fair policies, and chargeback protection. Cashback and reward points for certain merchant categories must. High-Risk VS Low-Risk Merchant Accounts Low-Risk Merchant Accounts. A merchant account is a contract between a company and a financial institution that allows the company to accept. 95% for every transaction compared to 0. This may include per-transaction and chargeback fees as well as setup, cancellation, and other one-time costs. High Risk. Low-Risk Merchant Accounts. These merchants are similar to physical store merchants except that the point-of-sale and all business is conducted online. Now that you know more about merchant accounts, let’s take a closer look at the difference between high-risk and low-risk merchants. 2. 1. They will provide the best rates for services, plus they will offer more lenient terms for services. 95%. Our selection criteria evaluate cost, transparency, contract requirements, and features. PaymentCloud: Best for free credit card terminal.