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This helps to reduce their exposure to fraud and keeps costs low for their existing clients.
Other providers will allow certain high-risk companies, but will charge you significantly higher rates and fees for your merchant account due to the elevated risk they’re accepting by giving you a merchant account.
You can expect that at least some of your recurring fees, particularly your basic monthly account fee, will be higher than what it would be for a non-high-risk business.
This is all a reflection of the fact that your processor is taking on additional risk by supporting your merchant account.
Finally, we’ll give you some tips for avoiding the not-so-high-quality providers that prey on high-risk merchants.
Businesses are also treated differently based on the degree of financial risk they present to their processor.
If you’re having trouble getting approved, take a look at our top picks for high-risk merchant accounts.