Are you tabbed as high risk merchant? Well, expect to face difficulties on your way. One of the most important things to bear in mind is that your high risk account won’t come with low rates and fees. So, why is it so? Also, who can get you the most reliable and affordable high risk merchant services, including a credit repair merchant account? Just read below to know.

High Risk Merchant Account: Credit Repair Merchant Account
Merchant accounts are classified as high risk because of the risks associated with them. This type of accounts has to do with higher incurring losses, thus charges are higher, which can’t be said about traditional accounts.

Here’re some of the high risk account fees:

  • Setup fee
  • Capture fee
  • Transactional fee
  • Schedule fee
  • Incidental fee
  • And more.

The following is important to take into account:

  • Whether there’re hidden fees in the merchant account contract you’re signing or not.
  • The monthly fees will be significantly higher as compared to traditional accounts.
  • Chances are you’re going to face a variation of a more costly multi-level pricing plan.
  • There’re financial institutions that charge the so-called “rolling reserve.”

Thankfully, there’re high risk professionals like First American Merchant that require the cheapest possible rates and offer the most flexible terms. is ready to work with high risk merchants and provide the necessary financial aid when completing high risk transactions.

FAM is a BBB-accredited alternative online lender and an award-winning payment processor in the high risk space. First American Merchant is well aware of all the ebbs and flows associated with the high risk space, including a credit repair merchant account. What’s more, with First American Merchant, you can get quick access to business funding such as FAM’s popular merchant cash advance.

Why Your Merchant Account Is High Risk
The calculation of the fees required for your credit card processing is based on several factors. Typically, high risk merchant accounts are known for chargebacks and fraud. Besides, industry/ business types, as well as transaction types, and the provider’s own requirements play an important in this regard as well.

More particularly, these are industries that sell illegal products/services and businesses associated with a high rate of fraud and chargebacks. So, the main reason why your high risk account will require higher charges is that your business features a riskier nature. So, don’t surprised if you get rejected just right off the bat.

Frauds or chargebacks step in when the money gets deposited into a merchant account and when the payment gets collected from the cardholder. This creates risks for the payment processing company. In such cases, the latter odes its best to avoid losses. That’s why the processor raises its rates to balance out the risks.

To sum up, being a high risk business calls for more than one concern especially when applying for a merchant account or a business loan. These may include higher rates and fees, and not only. Happily, you can shop around and find the best deal for your financial needs.

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