High Risk Merchant Business Categories
What is considered a High Risk Business Type ?
A high risk merchant is typically a business operating within an industry that is associated with higher than usual levels of credit risk, regulatory risk, reputational risk, or other types of risk as perceived by financial institutions and payment processors. Some industries may also be considered high risk due to a higher chance of chargebacks or fraud.
The list of high risk merchant business types can vary based on the financial institution or payment processor, but below are some commonly recognized ones that we accept for credit card and crypto payment processing:
- Online Gambling and Casinos
- Adult Entertainment and Products
- Travel Agencies and Services
- Airlines and Charter Services
- Drug Stores and Pharmacies
- Cannabis Dispensaries and Related Businesses
- Cryptocurrency Trading and Funding Solutions
- Debt Collection and Credit Repair
- Firearms and Ammunition Dealers
- Online Gaming and Digital Goods
- Multi-Level Marketing (MLM) Companies
- Online Dating Services
- Telemarketing Companies
- E-cigarette and Vaping Stores
- Pawn Shops
- Alcohol and Liquor Stores
- Bail Bonds Services
- Financial Services, especially those involved in high-risk loans or investment schemes
- Auction Houses, (especially online ones)
- Telecommunications
- Prepaid Cards, Gift Cards, and other Stored Value Products
- Subscription-Based Services, (particularly those with recurring billing)
- Software and E-Book Sellers
- SEO and SEM Services
- Ticket Brokers
- Timeshares
- Nutraceuticals and Dietary Supplements
- Payday Loan Services
- Direct Marketing – Continuity/Subscription Merchants
- Online Retailers selling high-value electronics or designer products
Keep in mind that just because a business is classified as high risk does not mean it’s illegal or unethical. It simply means that banks and credit card processors consider these types of businesses to carry more risk due to a variety of factors, which can include high transaction volumes, potential legal issues, or a higher likelihood of chargebacks.