FAQ – Frequently Asked Questions – High Risk Offshore

What is a High-Risk Merchant and why might I need a High Risk Merchant Account?

High Risk Merchants are businesses that have a higher than normal risk associated with their business type of customer base that tends to charge back at a higher rate than normal.  Merchants who run high risk businesses have a hard time finding credit card processing options from their local bank. Very few online merchant account providers are willing to take the risk to support the high risk merchant business types. Certain processors have a higher appetite for risk than others and are willing to take manage higher risk for higher rates of return. 

What are the rates and fees for a high-risk merchant account?

Your rates and fees will depend upon several factors. Your business or personal credit rating, business type, services, products and delivery time. Past processing history will always be one of the prime factors in being able to obtain an offshore credit card processing merchant account.  


What is a Rolling Reserve?

A portion of the revenue from a merchant’s credit card transactions held in reserve by the merchant account provider to cover possible disputed charges, chargeback fees, and other expenses. After a predetermined time, holdbacks are turned over to the merchant.  Rolling Reserve’s are normally set to the standard of 10% of each transaction is held back by the processor for 6 months total. After that the reserve rolls over each month beginning in the 7th month the reserve collected from month 1 is released to the merchant and replaced with the reserve amount taken  from sales in month 7 – this continues indefinately thus titled ” rolling reserve ”    


How long does it take to set up a High-Risk Merchant Account?

The length of time will vary depending on the situation. Some can be set up in a matter of days, and others might take weeks to finalize.


For more information please fill out our contact form or call to speak with one of our agents that can answer any of your questions and assist you to obtain an offshore merchant account.