What is High-Risk Merchant | chargebackhit.com

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High-Risk Merchant

 

A high-risk merchant is a merchant flagged by processors or banks as having an elevated susceptibility to chargebacks and fraudulent activity. This classification may stem from various factors, including a history of fraudulent transactions, operating within high-risk industries such as online gaming or adult entertainment, or offering products or services with a high likelihood of resulting in chargebacks.

High-risk merchants typically encounter challenges such as higher processing fees and may face difficulties in securing merchant accounts with multiple providers due to their perceived risk profile.