What is a high-risk merchant? Why some businesses find it harder to take cards
By SendPay Business · · 2 min read
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Payment providers call a business high risk when its payments are more likely to be disputed, refunded or tied up in fraud. It doesn't mean the business is doing anything wrong, just that the provider sees more chance of losses.
What makes a business high risk
- Selling in an industry with lots of chargebacks or fraud.
- Taking payment long before delivering, such as travel or event tickets.
- Subscriptions with free trials that turn into paid plans.
- Selling to customers in many countries.
- Being a new business with no payment history.
Industries often seen as high risk
Lists vary by provider, but often include travel, ticketing, gambling, adult content, nutritional supplements, crypto, debt services and some subscription businesses. A provider will tell you if your business falls into one of its higher-risk groups.
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What it means for you
High-risk businesses may pay higher fees, have part of their payouts held back in a reserve, wait longer to be paid, or need a specialist provider. Keeping chargebacks low, delivering on time and making refunds easy can move a business into a lower-risk group over time.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners. Ask us what applies to your type of business before you launch.
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- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How much will a provider hold back?
Work out a rolling reserve and your first month's payouts.
Rolling reserve calculator →What is merchant underwriting?
How providers decide to let you take cards.
What is merchant underwriting? →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.