A High-Risk Merchant is a business operating in an industry that payment processors consider to have a higher likelihood of chargebacks, fraud, or regulatory scrutiny. Examples include travel services, adult entertainment, nutraceuticals, and technical support. These merchants may face higher fees or stricter reserve requirements.

FAQs:

  • Can high-risk merchants use Stripe?
    Stripe supports some high-risk categories but prohibits others (like illegal goods or high-risk gambling). Check the “Restricted Businesses” list.
  • Why are my fees higher?
    Processors charge more to cover the potential cost of managing higher disputes and fraud rates associated with the industry.
  • What is a Rolling Reserve?
    For high-risk accounts, a processor might hold a percentage of your income (e.g., 10%) for 90 days to cover potential future chargebacks.

Related Terms: