Selling Custom Goods? A Guide to Merchant Account Solutions

Learn more about merchant account solutions for your high-risk business
Josh Phelps
August 23, 2022

What if you had a great business idea but couldn’t even get in touch with merchant account solutions?

This happens to many merchants every year. In fact, as many as 90% of merchants are considered “high-risk.” And if you sell custom goods, you are even likelier to be labeled as a high-risk business.

Being high-risk doesn’t mean you can’t be a successful business, however. You just need to have the right merchant account solutions by your side.

Ready to learn about the high-risk status and what steps you should take for your business? Keep reading to discover everything you need to know!

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Get in touch: (877)-511-3402

What Is a "High-Risk Merchant?"

A high-risk business is simply a business that banks consider risky. This may be due to anything from the nature of what you sell the general reputation of your chosen industry.

When the bank considers you a high-risk merchant, you may have difficulty getting credit card processing for your business. And without this, operating your business may be nearly impossible.

In these situations, it may be possible for you to open a high-risk merchant account instead. There are some downsides to this (including higher fees), but it may be the best merchant account solution for your business.

Reasons Why Banks Consider Businesses High-Risk

Earlier, we touched on the fact that the vast majority of businesses in America are considered high-risk. With that in mind, what causes businesses to be considered high risk or not?

The truth is that many different things can flag your business as “high-risk” in the eyes of the bank. For example, if your products or services come with long chargeback periods, this can make banks nervous.

Sometimes, even the reputation of your industry having long chargebacks can be a red flag. The same goes for industries that banks think might cause harm to a respectable reputation (such as businesses selling adult marital aids, tobacco, and so on).

The bank may consider you high risk if you sell very expensive products. And they will tag you as high risk if you have poor personal credit, poor business credit, or your business has a history of low sales.

It’s very easy for you to be labeled as a high-risk merchant. If that happens, though a high-risk merchant account may be the solution your business needs.

Understanding the High-Risk Merchant Account

If the bank has labeled your business as high risk, it doesn’t mean you will be unable to use credit card processing services. You simply need to open a high-risk merchant account instead.

Generally speaking, these are special accounts that come with higher fees. The higher fees are there to help offset the additional chargebacks that the bank is worried about.

You can apply for a high-risk merchant account online very easily. And once you have the account, you’ll have access to the merchant account solutions you need to run your business.

The Benefits of a High-Risk Merchant Account

Still on the fence about applying for a high-risk merchant account? To help you make your decision, we’ve rounded up the biggest benefits of using these accounts.

One of the biggest benefits is that you’ll have global coverage for your business. Being able to sell goods and services to customers all over the world can really help you to expand your business. And it allows you to increase profits and boost your bottom line in a big way.

The other big benefit of a high-risk merchant account is that you get enhanced chargeback protection. With this protection, you don’t have to worry about too many chargebacks coming in and getting your account terminated for good.

Are There Any Drawbacks To a High-Risk Account?

There are some great benefits to getting a high-risk merchant account. However, there are also some drawbacks that you should be aware of.

We’ve already covered the biggest drawback: higher fees. While no business owner likes paying fees, these fees help protect against chargebacks. As such, this is simply “the price of doing business” for many companies.

Aside from that, the only other “cons” mostly depend on who you do business with. For example, some merchants have to deal with high mandatory reserve accounts and annoying rolling reserves. You can avoid these problems by choosing a merchant account solution you can trust .

Navigating High-Risk Merchant Fees

We’ve discussed the fact that high-risk merchant accounts often pay more in fees than low-risk merchant accounts. But what kinds of fees can you expect to encounter?

Depending on who you use, there may be fees to set up and to terminate your account. There may be capture fees for physical terminals and the chargeback fees we mentioned earlier.

You need to do your homework regarding other fees. For example, you may have penalty fees, monthly fees, and processing fees. Keep in mind that processing fees really add up, even if they don’t look very big at first glance!

How To Find the Best High-Risk Merchant Account Solution

If you were worried about finding merchant account solutions as a high-risk merchant, don’t. There are plenty of solutions to choose from. The trick is to make sure you pick the company that can best help your business!

To do this, there are a few things you need to look for. As an example, the company you work with should be flexible to your needs and offer a fast response to your questions. The company should have cutting-edge technology and be transparent about how much everything costs.

Make sure the company has a professional website and a good reputation. Finally, make sure the company offers the security features that you and your customers deserve.

Merchant Account Solutions: Start Selling Your Custom Goods Today!

Now you know more about merchant account solutions for high-risk businesses. But do you know who can help you process payments for your own customers?

Here at Zen Payments, we specialize in helping businesses just like yours find the best payment processing solutions. To discover how we can help you succeed, all you have to do is contact us today !

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Zen Payments

Our merchant service specialists are the best in the business and will work with you from start to finish to get your account approved!

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Fill out this form and a merchant services representative will be in touch!


Josh Phelps is an experienced sales professional with eight years of expertise, including four years in payment processing. Throughout his career, Josh has successfully secured approvals for thousands of businesses, demonstrating his skill in navigating and optimizing the payment processing landscape.

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