Applying and getting approved for a merchant payment account isn’t always a simple matter, especially for businesses that are considered “high-risk” by financial institutions or payment processors. They take on a certain amount of risk with every transaction they process. For this reason, they want to protect themselves as much as possible in order to minimize their losses to bad transactions despite businesses that have a good business model with bright prospectsTherefore, each financial institution or processor calculates risk differently.


Here are some reasons why businesses are classified as "high-risk": 

Credit History

Business Location

High Chargeback Ratios

Credit Card Processing History

Type of Industry

Business Size


What is the difference between high-risk and low-risk merchants?


Chargeback thresholds are what sets high-risk and low-risk merchants apart. Every processor has a chargeback monitoring program. When a low-risk merchant enters a program, it is given time to fix any problems before they are subjected to excessive fees.

When a business gets labeled high-risk, merchants still can accept credit payments. However, these businesses are subjected to higher processing rates.

XPAY caters to all merchants that fall under these various risk categories.

XPAY | High Risk Merchants
  • Amazon, Yahoo, or Google Stores

  • CBD

  • Coaching

  • Credit Repair

  • Crowdfunding

  • Cryptocurrency & NFTs

  • Dating

  • Debt Collections

  • Document Preparation

  • Drop Shipping / Shopify Stores

  • Firearms / Ammo

  • Gaming / Gambling

  • High Volume or High Average Transaction Amount

  • Live Video Streaming

  • Loans / Lending

  • Marketplaces

  • Multi-Level Marketing (MLM)

  • Money Service Businesses / Money Transfer (MSBs)

  • Nutraceuticals / Skincare / Cosmetics

  • Pharma (Online Pharmacies)

  • Startups

  • Tactical Gear

  • Telemarketing

  • Telemedicine / Telehealth

  • Ticket Brokers / Events

  • Travel (Agencies, Operators, Etc.)

  • Tobacco & Cigars

  • Vapes / e-Cigarettes

  • Vitamins and Supplement Sales

  • Others

high risk

XPAY | Med Risk Merchants
  • eCommerce Subscription

  • Accounting

  • Drop Shipping

  • Document Preparation

  • Property Management

  • SEO Services

  • Web Design

Moderate risk

XPAY | Low Risk Merchants
  • Apparel

  • Home Goods

  • Moving Companies

  • Pet Supplies

  • Beauty Products

  • Books

  • Others

*XPAY provides cash discount & convenience fee models for low-risk to moderate risk business models

LOW risk