There are times when every business feels as if they are a high risk merchant. Every company has to periodically deal with delinquent accounts, fraudulent activity, stolen credit cards and chargebacks. While it is true that there are no guarantees in business, there are some types of merchant accounts that are considered particularly high risk. Some common types of businesses that warrant a high risk merchant account include:

• Online gaming

• Adult entertainment services and products

• Travel services

• Pharmaceutical and herbal supplement products

• E-Cash services

• ISP and web hosting services

• Online tobacco vendors

• Online debt services

• Online dating services

• MLM merchant account

This list is by no means conclusive; which means that you may run a business that seems as if it could use a traditional eCommerce merchant account. Some analyses by experienced merchant account professionals might demonstrate your own need for a high risk processor.

So, what are some attributes of a high risk merchant? Ask yourself the following questions to discover if you are in this exciting, but risky, area of business:

Do you handle a MLM merchant account?

Most multilevel marketing companies are considered high risk by account institutions, due to their high rate of chargebacks. If you run one of these businesses, you will likely need to look for a high risk processor that deals with this type of business relationship and can offer you an MLM merchant account.

Do you have a high number of chargebacks?

Chargebacks, or transactions that wind up being deducted rather than deposited into your account, will designate you as a high risk merchant and require that you search for either national or offshore institutions willing to work with these types of businesses. Regardless of the reasons behind your businesses’ chargebacks, you will be dealt with as high risk.

Do you wind up with many instances of fraudulent credit card or other activity?

If, for whatever reason, you end up with many cases of credit card fraud or other instances of identity theft, then you will probably need a high risk processor. There are ways to reduce your instances of credit card fraud; check with one of these specialty processors for some suggestions.