What Are High-Risk Credit Cards?

Suppose you are a merchant and involved in a business that faces high risks of chargebacks and added fees that might pertain to legalities or the transactions you’ve made. In that case, you probably feel cheated by all these banking systems because they don’t provide you the protection and the facilities you need to reduce the high fees you end up paying for chargebacks and transactions. Well, there’s no need to feel that way anymore – or pay an enormous amount of fees to keep your business up and running. What you need is a high-risk credit card.

If you haven’t heard of a high-risk credit card and don’t know what it is all about, don’t worry – you aren’t the only one. High-risk credit cards and merchant accounts are relatively new, and not many have come to realize their benefits and potential. To make sure you make the best of your business and don’t get stuck in a loop of financial losses, we’ve gathered all the information you’ll need to understand high-risk credit cards and high-risk credit card processing. Start by looking at what high-risk credit card and credit card processing is all about before moving onto its benefits, who is eligible for it, and how to get involved. 


High-risk credit cards are associated with high-risk businesses and high-risk merchant accounts. Though “high-risk” might add a negative connotation to the idea of a credit card, it’s not a bad thing at all. High-risk credit cards are the perfect solution for people involved in a business that comes with high financial risks and a risk of high chargebacks. A high-risk credit card protects against paying high fees on transactions and chargebacks, reducing the amount of money you have to shell out from your profits.


High-risk credit card processing calls for a payment processing platform – provided by the bank that holds the merchant account and releases the credit card – that will keep track of all transactions, verify the payments, and then transfer the money to the required bank accounts. 

The fact that the payments are verified before any transaction is finalized saves the merchant and the buyer from fraudulent transactions. 

Let’s look at some of the benefits of high-risk credit cards and high-risk credit card processing.


Here are a few benefits of using high-risk credit cards and having merchant accounts that offer high-risk credit card processing:

Business Expansion Into The Global Market

High-risk credit cards open up doors to the international market and allow you to engage in monetary transactions with customers from various countries by providing the facility of carrying out transactions in multiple currencies. 

That will expand your business and increase profit rates without forcing you to spend a lot of money or pay an enormous fee for carrying out international transactions.

Increased Earnings

According to an article by Chargebacks 911, high-risk credit cards increase your capacity and potential to earn more money by removing the limit on how much money you can accept per transaction or over a specified period. 

Moreover, the use of high-risk credit cards also allows for availing of a service that allows for recurring payments or a subscription service. This has proven to increase earnings as people who go for subscriptions tend to stick to service for longer than those who make a one-time purchase.

Reduced Fee On Chargebacks

One of the most important benefits of using a high-risk credit card is that the fee you end up paying on high chargebacks is drastically reduced. For a high-risk business, the risk of chargebacks is very high, and the fees paid can quickly turn profit into a loss. High-risk credit cards anticipate this loss and are designed around the possibility of high chargebacks, which is why they come with policies that prevent loss of money and harm to the business. 

Now that we know why high-risk credit cards are essential and how they can change a business’s growth trajectory, let’s take a look at who qualifies for a high-risk credit card and what the process of acquiring one looks like.


High-risk credit cards are meant for high-risk merchants, merchants who deal in goods and services that face a risk of chargebacks and high fees. The benefits they provide are designed especially for such businesses, meaning that low-risk merchants do not fit the eligibility criteria. 

According to Securion Pay, here are some of the conditions that a business/merchant must fulfill to qualify for a high-risk credit card.

  • The business/merchant sells products or services that involve some legal kinks.
  • The business/merchant sells products or services to countries known for high lives of fraudulent activities and business transactions.
  • The business/merchant has more than USD 20,000 in sales volume.

These are only some of the most basic requirements; these requirements differ from processor to processor and can be very exhaustive. To qualify for a high-risk credit card, you need to be involved in a high-risk business.

Let’s take a look at what the process of acquiring a high-risk credit card looks like.


To acquire a high-risk credit card, you need to fill out an application with your payment processor or bank and provide the required documents for your business. This list of documents can differ from bank to bank; here are some of the documents that you’ll need to prepare before you fill out an application:

  • A business license 
  • Sales report and income tax assessments 
  • Processing history for your business account for the last 6 months

An official will then verify your documents. If everything checks out, you get your high-risk merchant account and your high-risk credit card. 


Suppose you run a high-risk business and are tired of paying unnecessary and enormous fees every time you make an international transaction or a transaction that goes wrong. In that case, you need to get yourself a high-risk credit card and protect your business and yourself from all these unnecessary losses and payments. Getting a high-risk merchant account and a high-risk credit is a decision you won’t regret!

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