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High-Risk Merchant Account Is The Need Of Our In This Online Business Regime

Yes, You heard it right online business regime and the need for high-risk merchant accounts in it. As per the UNCTAD, world trade was $28.5 trillion in 2021, and it already hit a record $7.7 trillion in the first quarter of 2022. According to Businesswire, the global eCommerce market was valued at $13 trillion in 2021 and is expected to rise to $55.6 trillion by 2027 with a CAGR of 27.4%.

You can imagine how huge the global ecommerce market is and how large the potential it has. Ecommerce is one of the highest growing sectors in the economy. With the growth of the internet, social networks, and digitalisation, the ecommerce market is touching the sky. The shopping experience has completely changed with ecommerce. A customer can buy any goods and services via ecommerce. If a customer wants to buy some restricted or banned item that is not illegal, ecommerce is the safest place to buy.

The trend has changed with time. Before COVID-19, people were used to playing outdoor games for their entertainment, but the pandemic locked everyone in their houses. Technology draws people to adopt online gaming and fantasy gaming for entertainment, and it also helps them earn money. The online gaming market was valued at $235.7 billion in 2022 and is expected to rise by $321.1 billion by 2026.

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Similarly, earlier, people were used to going to a lottery or betting place to purchase a lottery or bet. Casinos were only offline, but time has changed. Nowadays, thousands, even millions, of merchants are facilitating people to buy online lottery, allowing them to bet online and providing the facility to play casinos online. You must be aware of the fact that the world gambling market is crossed $747.9 billion in 2022.

Furthermore, earlier banks and large financial institutions were only allowed to sell and purchase foreign currency via physical mode, but nowadays, everyone is doing forex trading online thanks to the forex merchants who provide these platforms to the public. We can see the change everywhere, even in pharmaceuticals, escort services, IPTV, etc. These are just a few industries we introduce, but almost every sector has upgraded itself to online.

We briefly saw the online business regime. Merchants are upgrading themselves from costly rented shops to cost-efficient online markets. To this upgradation, you build a website or app and list your item on board. Now the main thing starts: you need a merchant account to accept the payment from your customer for the sale of any goods and services. You can not accept online payments via credit or debit card without a merchant account. A merchant account can be acquired by banks, financial institutions or international payment gateway service providers.

But the principal problem is that banks and other financial institutes consider an online business a high-risk business for several reasons that we will discuss in detail in this blog. Banks and other key financial institutions do not provide high-risk merchant accounts for online businesses or eCommerce. Questions must arise in your mind, What? Really? Then what to do now? How can I get the high-risk merchant account?? Who offers high-risk merchant accounts? And more similar ones. Don't worry if we are narrating these questions. It's our responsibility to provide the answer too. The answer is Payment Service Providers (PSP). PSPs are the entities that provide you with a high-risk merchant account for your online business, no matter what it is.

What Is a High-Risk Merchant Account?

A high-risk merchant account is not fundamentally different from a low risk, and the main difference is the level of risk. High-risk merchant accounts facilitate accepting payment via credit or debit card, bank transfers, CNP payment, digital wallet and cryptocurrency. It also allows you to accept payment in multi-currency and various payment modes. A high-risk merchant account safeguards you from fraud using top-notch security and futuristic tools.

Reasons You May Be Considered For High-Risk Merchant Account

There are several reasons a merchant is considered high risk, all can be covered in a blog, but we'll discuss the major one here so that you get the fundamental idea of why you are being considered a high-risk merchant.

Nature of Business Where You Have To Obtain A High-Risk Merchant Account

The nature of business is one of the first primary reasons to consider a business high-risk. Traditional businesses and businesses involved in Giffen goods are considered low-risk businesses, but the industries involved in the newly released, progressive, and tangible goods and services are commonly considered high-risk businesses.

Newly released item means items that are experimental and not yet trusted by the customer are more prone to return, which makes it a high-risk business. Even the market of pleasurable goods and services, including sex or adult toys, sexually appealing outfits, and escort services, reached $30.50 billion in 2021 and is expected to reach $62.50 billion by 2030, yet are considered high-risk businesses. Even though the online gaming (intangible services) market has achieved a value of $235.7 billion in 2022, entertainment methods like online games and fantasy games are considered high-risk. Furthermore, the casino, betting, and gambling industry crossed the mark of $747.9 billion in 2022 but yet this industry is still regarded as a high-risk industry.

The world's largest liquidity market, the forex market, has daily transactions of more than $6.6 trillion, still growing steadily but considered a high-risk industry. Similarly, Subscription-based services like IPTV, Dating Apps, Annual Membership, etc., are booming in the market but still, these industries are called high-risk industries. We are presenting you a table of some businesses considered high-risk businesses, we provide merchant accounts for these mentioned industries:

Adult Toys Merchant Account Forex Merchant Account E-Commerce Merchants Account
Escort Services Fantasy Gaming IPTV Merchant Account
Casino Merchant Account Gaming Merchant Account Gambling Merchant Account
Dating Apps Online Lottery Offshore Corporations
Sex or Adult Toys Online Betting E-Cigarettes
Tobacco Merchants Tech Support Social Media Marketing (SMM) Merchant Account
Fantasy Sports Merchant Account Annual Contracts Banned Goods and Services
Games Health and Wellness Product Horse Racing Bets
Igaming Subscription Based Billing Online Gaming
Import and Exports Live Games Betting Multi-Level Marketing (MLM)
Medical Care Programs Membership Based Companies ISPs
Music or Movies apps OTT Other Online Business
Online Bingo Real State Social Gaming
Pawn Shop Travel Companies Weapons

Higher Chargebacks Are A Major Challenge For High-Risk Merchant Accounts

High-risk businesses are more likely to have higher chargebacks than low ones for several reasons, including limited and specialised services. Industries that are mentioned in this table are high-risk industries. Every high-risk industry has a chargeback issue, and it occurs mainly when a customer returns or does not accept the goods and services he ordered and claims a refund. This refund or chargeback is significantly high in these industries.

Illusion: a customer subscribed to a Dating App and got some partner, deleted the app but forgot to unsubscribe from the services. A dating app is a subscription-based service in which auto-renewal of services occurs at a specific time (monthly, quarterly, half-yearly or yearly). When a customer notices a money deduction for this kind of service, he claims a chargeback, and a merchant has to return his money, which is an issue of chargeback.

A high-risk merchant account provider must facilitate a merchant with a state-of-the-art chargeback prevention mechanism to prevent a merchant from chargebacks.

High-Risk Merchant Accounts Face High-Transaction Volume

A low-risk merchant's average transaction value is under $500, while a high-risk merchant's average transaction value is higher. Average monthly sales in high-risk industries exceed $20,000, a much higher volume of transactions than in low-risk industries. This supports classifying an account as high-risk because it is challenging to maintain track of every transaction. With a high-risk merchant account, you can monitor transactions in real-time, and you routinely get thorough transaction reports at the end of each day, week, and month. Additionally, a high-risk merchant account offers you the option of electronic invoicing for each purchase.

No matter how large-ticket your merchant sells, a PSP must safeguard its merchant and provide the facilities to help him track the records.

High-Risk Businesses Are More Prone To Fraud

Most people prefer to purchase online due to the ease of shopping. Unsurprisingly, this expanding trend is also being followed by identity theft. Online thieves always come up with inventive latest ways to steal your customers' money and personal information. Additionally, data thieves are more likely to utilise stolen information to make online purchases than in-person ones. Many PSPs are afraid to engage with e-commerce merchants owing to the elevated risk of fraud. PSPs can charge a Lil-bit higher than low-one.

With the help of a high-risk merchant account, you may take advantage of advanced security features such as 3D security, AVS and CVV checkers, fraud scoring (transaction risk score), geographic tracking, and PCI-DSS compliance. A high-risk merchant account provider safeguards you from fraud by incorporating future avant-garde technologies and artificial intelligence.

These are the main reasons a business or merchant is considered high-risk. Furthermore, there can be several more reasons banks, financial institutions, and payment service providers consider you a high-risk merchant.

Why Do Online Businesses Need A High-Risk Merchant Account?

Higher the risk, the higher the profit. These are the businesses that have the potential to earn significantly higher than the low-risk ones. Profit is the first factor a merchant starts its online business. Online business doesn't need an offline store to show their offerings. On a website or app, you can entirely present your portfolio, which saves a lot of expenses.

It also helps you expand internationally by providing the mechanism (international payment gateway) to accept international payments. It supports you to be a part of world trade and eventually helps you achieve your goals and dreams. A study indicates that more than 2 billion online shoppers are available worldwide, and this figure will continue to grow as the nearly 6 billion population is still untouched.

If we focus on regional statistics, we can say that presently developed countries have a more significant percentage of people who shop online. In the USA, nearly 70% of the population buys goods and services via eCommerce. Similarly, in the UK, more than 70% of internet users prefer to buy products online. On the other hand, in developing countries, the population is sharply moving towards online shopping. In 2022, the Philippines and India saw the highest growth rate (26%), with Indonesia (23%), Vietnam (19%), Malaysia (18%), and Thailand (18%) in retail eCommerce sales. This data is clearly showing the moving trend toward eCommerce and its potential.

Additionally, a high-risk business is more susceptible to fraud and chargebacks. Thus a high-risk merchant account includes the safeguards to protect you from these problems. Your time is saved, allowing you to focus on the essential aspects of your company. It gives you access to the international market and assists in boosting your revenues to the next level.

Payment Service Providers Charges Higher Fees for High-Risk Merchant Accounts

We have discussed several reasons why a business is considered high-risk. Basically, these are the reasons that also affect the cost of a high-risk merchant account. With several concerns like chargebacks, high volume, big tickets, fraud and the nature of business, the high-risk merchant account provides the technology that saves you from all these issues.

In high-risk businesses, the proportion of chargebacks and scams is comparatively high. To shield you from these significant risks, a high-risk merchant account provider employs advanced security technologies, sophisticated fraud protection systems, and cutting-edge chargeback prevention techniques. Due to this ever-improving technology, fees are higher than low risk. International credit card processing, alternative payment methods, and multicurrency are additional factors that raise the cost of a high-risk merchant account.

A high-risk merchant can be required to sign a contract with lengthier terms, shell out money if they want to end it early or set up recurring payments that happen cyclically. High-risk merchant accounts may also be subject to a rolling reserve, whereby the payment processor withholds a portion of your revenue until it can confirm that your transactions were valid and not prone to chargebacks.

How To Obtain A High-Risk Merchant Account Quickly?

A high-risk business needs to undergo a longer application procedure than a low-risk one, although there are some techniques that can shorten it. First, by collaborating with a reputable, high-risk merchant account service provider with experience in high-risk payment processing, businesses can speed up the acceptance procedure.

The proprietor of a high-risk business must confirm the legitimacy of the supplementary papers before submitting an application for a high-risk merchant account. It's crucial that you communicate openly and honestly with your account service provider about every facet of your organisation. Information fabrication by merchants is common and may result in account denial. Being honest during the application process is advisable because giving false information about your business can result in suspension, denial, or deletion.

The first requirement is a corporate website. Your website must host all the products and services your business offers online. If your relevant policies are available for clients to review, customers will have more faith in your legitimacy. You can also be requested the following documents:

  • High-risk payment gateway completed application form
  • Original photo Ids card, such as a passport or driver's licence
  • Latest utility bill, such as electricity or landline (to confirm physical address)
  • A cancelled cheque that has a business name on it.
  • Three months' bank statements (to check that the business is currently operating and functional)
  • Last three months' personal bank statement records
  • Your business plan and strategy
  • Memorandum and articles of incorporation
  • Partnership contract of the company (if applicable)
  • Any document confirming the directors' current address

How PayCly Is The Best High-Risk Merchant Account Provider?

Although there are numerous payment service providers that can offer you a payment gateway, only a significant subset of them give you access to a merchant account. PayCly is what you require for your high-risk business. We facilitate you with all the essential features that an international high-risk business needs. We are a team of wizards. Our process is first to comprehend your needs, second to analyze them, third to provide you with the finest suggestions, and finally, deliver you the best-tailored service according to your requirements. We have the following advancements over our opponents:

  • We all know that cross-border sales are continuously growing. It has already reached 22% of the total eCommerce trade worldwide. Many experts stated that cross-border sales are the future of eCommerce. Keeping this in mind, PayCly provides you with the world's best International Merchant Account along with an international payment gateway that allows you to participate in this extensive worldwide market. As we know that a global firm is considered a high-risk business, PayCly's international merchant account is a high-risk merchant account with all international embedded features.
  • We support multinational businesses by providing online payment solutions that are personalized to their requirements. PayCly supports its merchants' international expansion by accepting payments in a wide range of currencies, including cryptocurrencies. We are the best in credit card processing, and We provide as many payment methods as possible to increase customer retention.
  • The checkout page on your high-risk merchant account from PayCly is loaded with multilingual support to make it feel user-friendly to a consumer. Our payment mechanism takes your website's language into reference. For instance, your checkout page will be in British English if your website is. If your website is available in another language, it will automatically switch to that language so that visitors feel comfortable doing business with you.
  • PayCly's security measures are highly advanced. As a payment processor, we are responsible for protecting our merchant from any monetary risk. We use artificial intelligence, machine learning, pattern recognition, and user profiling to help you identify and stop payment fraud as quickly as possible. This ensures the security of our merchant's payments. Additionally, to protect you from fraud, we employ 3D security, tokenization, transaction risk scoring, PCI-DSS level 1 (top-level certification), and a number of cutting-edge techniques.
  • We use the best chargeback protection solution on the market and adhere to three-tier criteria to completely eliminate the chance of a fraudulent chargeback. The latest and futuristic security and chargeback features made PayCly the securest payment processor and high-risk merchant account provider worldwide.
  • PayCly provides a specialised merchant account for each industry included in the table. No other payment service provider can compare to our specialised industrial merchant accounts, which have the advantages of being high-risk and industry-specific. We offer special Forex Merchant Accounts for forex trading merchants, plus Adult Toys Merchant Account for merchants involved in sexually pleasurable items. Our IPTV Merchant Account and Dating Merchant Account are other examples of specialised subscription-based special accounts. Additionally our Casino Merchant Account, Gaming Merchant Account & Gambling Merchant Account are out of the box, other competitors even can't catch up with us in the field.
  • In accordance with the needs of the merchant, we count invoicing, checkout page themes, and other relevant elements. Additionally, we offer a white-level payment gateway, allowing you to customise the payment checkout page with your brand's name and design.
  • Easy Customization and Integration are PayCly's primary goals. All shopping carts are compatible with PayCly's high-risk merchant account. Moreover, PayCly provides its own shopping carts to shops, allowing them to quickly and affordably sign up for the service. We provide user-friendly, adaptable, and customizable high-risk merchant accounts.
  • We provide equal opportunity to the merchants that are regulated and unregulated. We are one of the few payment service providers offering high-risk accounts for unregulated merchants so they can operate their businesses without any problem. Compared to our competitors, our fee structure is very reasonable and compatible. With PayCly, you do not need to worry about the hidden cost as we don't charge any.
  • PayCly is an international payment service provider our presence is worldwide. We have been awarded the best payment service provider in Southeast Asia and an emerging star in Europe and USA. According to region, we have customized our services like Payment Gateway in Singapore, Payment Gateway in Thailand, Payment Gateway in Indonesia, Payment Gateway in Malaysia, and Payment Gateway in the Philippines.
    These classifications have been done after comprehensive research on customers' behavior during shopping, what payment option they choose, what payment mode they choose and how they shop etc., which is done by our R&D team. Customer of every country has different payment mode and currency choice, so we customized our payment gateways and merchant account accordingly. We made those options primary and others secondary so customers can easily purchase from your web or app.
  • We are always available in your service you don't need to wait for the working hours as our customer service is available 24*7. We believe that the merchant's satisfaction is our responsibility. Our team members provide multilingual support; no matter where you are from, our experts have the ability to serve you. If you have any questions about the payment solution, our customer service specialist is standing by to answer them.


This blog can help you understand how huge the digital marketplace is in this online business regime. We've discussed every aspect in detail. We saw that the eCommerce market is reaching nearly $13 trillion, and cross-border eCommerce is participating 22% in this. Nowadays, people of all generations prefer to buy goods and services online. More than 2 billion online shoppers exist worldwide, and this number is only moving towards the sky. The potential of eCommerce, Online Gaming, Online Gambling, Forex Market, Pleasurable Goods, and IPTV market can be understood by this blog. PayCly encourages merchants to start and expand their business with us. We are here to guide you in every part and are ready to provide you with the world's best financial services. We assure you that we are chef-d'oeuvre in the payment service providers. You can connect with us anytime.

Frequently Asked Questions (FAQs) About High-Risk Merchant Accounts

What Is The Difference Between Low-Risk And High-Risk Merchant Accounts?

Low-Risk Merchant Account High-Risk Merchant Account
Low chargebacks and refunds High chargebacks and refunds
The average credit card transaction is below $500 The average credit card transaction exceeds $500
Average monthly sales are below $20,000 Average monthly sales are higher than $20,000
Bank and financial institutions provide merchant accounts Banks and financial institutions do not provide merchant accounts, but PSPs provide MA
Generally, a domestic business that accepts local currency Generally, international business that accepts multination currency
Music or Movies apps OTT
Products are considered reputed Products and services are categories unreputed
Deals in low-risk countries Deals worldwide
A merchant with a good credit history A new merchant with restricted payment history

Can My Start-Up Business Get A High-Risk Merchant Account?

PayCly can help any online business with a high-risk merchant account. We warmly welcome and support newcomers and ultimately assist them by providing the best services available. To help them grow in the enormous online market, we provide them with high-risk merchant accounts, high-risk gateways, and industry-specific merchant accounts. Our documentation part is also limited, and we offer instant approval for high-risk merchant accounts.

Who Is The Best High-Risk Merchant Account Provider In Southeast Asia?

PayCly, We can categorically state that PayCly is the top provider of high-risk merchant accounts in Southeast Asia, particularly in Singapore, Malaysia, Thailand, Indonesia, and The Philippines. Additionally, PayCly is a leading international provider of payment services that offers the best high-risk merchant accounts globally with a variety of payment methods, quick integration, a highly secure payment service, 24*7 support, and competitive costs.

What Are The Benefits Of A High-Risk Merchant Account By PayCly?

The following are the significant benefits of a high-risk merchant account with PayCly:

  • International Expansion: As an international merchant account or international payment gateway is a particular part of a high-risk merchant account. It helps your international expansion by enabling you to accept the global currency. A high-risk merchant account also allows you to accept payment via different payment modes.
  • Recurring Billing: Recurring billing is one of the major benefits a high-risk merchant account must have. By choosing this service, you will be able to charge periodically (monthly, half-yearly, yearly, etc.) for your services like the Dating apps, IPTV, and so on.
  • Support Numerous Industries: You may be doing business in an industry that is not classified as reputed, like sex toys or escort services, and the bank won't provide you with the account facility. The PSP's high-risk or industry-specific merchant account can only be the savior of your business.

These are the most frequently asked questions (FAQ) a merchant has. We make every effort to go through every detail of a high-risk merchant account https://www.forbes.com/advisor/business/software/what-is-high-risk-merchant-account/

so that you are completely informed and able to select a payment service provider that is right for you. Finally, we recommend PayCly as the solution you need.

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