Payment Tips


Get A Custom HRMA
Kolby Nielson
June 01, 2023

HRMA stands for high risk merchant account. It is an acronym that is shorthand for merchants who require custom payment processing solutions for their unique business needs.

Certain businesses are labeled as “ high-risk ” due to various factors such as industry, sales volume, or previous credit history. These businesses often face unique challenges when it comes to obtaining payment processing solutions.

In this comprehensive guide, we will unravel the mysteries surrounding HRMAs , addressing common questions and shedding light on how they can benefit businesses operating in challenging industries.

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Get A Custom HRMA

An HRMA is specifically tailored for businesses operating in industries categorized as high-risk by payment processors. Such industries may include online gaming, adult entertainment , travel, and subscription-based services, among others. High-risk merchant accounts offer businesses the ability to accept payments while managing the associated risks more effectively.

What Makes a Business "High-Risk"?

High-risk businesses can fall into this category due to several reasons, such as:

  • High chargeback ratios : Industries prone to higher chargeback rates, where customers dispute transactions frequently, are often deemed high-risk.
  • Regulatory and legal considerations: Industries with complex regulations or legal restrictions, such as online gambling or pharmaceuticals, are typically labeled as high-risk.
  • Reputational risks: Businesses that operate in industries with a higher likelihood of fraud or unethical practices, such as adult entertainment or debt consolidation, are often classified as high-risk.
Obtaining a HRMA For Your Business

Obtaining a HRMA For Your Business

Securing a HRMA involves a series of steps that businesses should follow:

  1. Research and Identify Suitable Providers: Conduct thorough research to identify payment processing companies experienced in handling high-risk merchant accounts. Look for providers with a solid track record, industry expertise, and a robust network of acquiring banks.
  2. Demonstrate Strong Financials and Compliance: High-risk businesses must prepare comprehensive documentation to demonstrate financial stability, compliance with industry regulations, and risk mitigation strategies. This may include financial statements, processing history, KYC (Know Your Customer) information, and chargeback prevention measures.
  3. Apply and Undergo Due Diligence: Submit a detailed application to the chosen payment processing provider . Be prepared for a rigorous underwriting process that includes a thorough review of your business model, risk management strategies, and compliance measures. Providing accurate and transparent information is crucial to gaining approval.

Can Startups or Businesses with Poor Credit Obtain a High-Risk Merchant Account?

Yes, startups and businesses with poor credit can still apply for high-risk merchant accounts . While a poor credit history may pose challenges, some payment processors specialize in working with businesses in these situations. Startups can focus on showcasing a strong business plan, market potential, and any existing partnerships to improve their chances of approval.

Benefits and Considerations of HRMAs

High-risk merchant accounts offer unique advantages and considerations that businesses should be aware of:

  • Risk Management Tools : High-risk merchant accounts often come equipped with advanced risk management tools, including fraud detection and prevention mechanisms. These tools help minimize chargebacks and fraudulent transactions.
  • Expanded Payment Options : High-risk merchant accounts provide businesses with access to a broader range of payment options. This includes accepting credit and debit cards, e-checks, and alternative payment methods, enhancing convenience for customers.

Get Started With
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!


Kolby Nielson is a dedicated sales representative at Zen Payments, specializing in approving merchants and assisting businesses in their payment processing needs. His expertise and commitment have made him a trusted partner for countless businesses, ensuring smooth and efficient payment solutions.

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