Some businesses MAY be classified as high risk for a number of reasons. High Risk Processing provides merchant services for high-risk merchant accounts, offshore merchant accounts and high-volume merchant accounts (examples of high risk merchants include mail order, telephone order, direct marketing, infomercials, dating sites, travel, telecom, timeshares, subscription services, membership services, membership clubs, tickets, MLM, multi-level marketing, bail bonds, pawn shops, water filtration, high volume merchant accounts, international merchant accounts, companies facing high chargebacks, etc.)

Banks often perceive many e-commerce businesses worldwide as high risk since the customer is not present to sign the credit card receipt.  Enhanced restrictions are sometimes then imposed on the merchant that ultimately leads the business owner to search for a high risk merchant account. The following trading practices lead many/most banks to categorise businesses as high risk:

Accepting card payments over telephone

Accepting card payments over Internet

Free trial offers, then recurring billing

High price points (average over $500)

High volume of Internet sales

Seasonal/sporadic online sales

Selling to International customers

Hosting the credit card payment page

Foreign currency processing

New web based applicants

Offshore company

Start-up Internet business

Merchant with a high refund rate

Business owner requesting anonymity

Delivery terms and conditions

‘TMF’ past closed merchant account