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Hard To Place Merchant Services

May 19, 2023

Hard To Place Merchant ServicesHard to place merchant services are also known as high risk. These types of businesses can struggle to find sustainable payment processing from standard banks. But luckily hard to place merchants have other options. 

Companies like PayKings provide merchant accounts for businesses in unique industries. Our team of experts helps you apply for payment processing with a bank that’s willing to help you get the account you need. 

Why Are Some Businesses Hard To Place?

Why Are Some Businesses Hard To Place?There are a number of reasons why a company may need specialized payment processing services:

  1. Industry Restrictions

    Different industries have their own unique standards and regulations. For example, the shipping requirements for tobacco products changed recently. FedEx no longer supports shipping vaporizers, tobacco, or e-cigarettes.

    The changing regulations in verticals such as vape and tobacco are an example of dynamic regulations. These types of changes happen often and across many different government branches and private establishments. Because certain products undergo various regulatory adjustments, standard payment processors often choose not to support merchants who run these types of businesses.

  2. Consumable and Topical

    Related to industry-specific regulations are types of products that people consume or use as makeup and topical agents. The FDA has strict guidelines when it comes to making claims about medicinal products. Moreover, items like nutraceuticals need to be approved by the FDA in order to meet general consumer health guidelines.

    Medical claims need to have scientific grounding. For example, if you’re selling CBD cream and claiming it helps reduce pain, you need to provide evidence-based double-blind placebo-tested trials to prove the claim. Otherwise, banks will ask you to remove it from your website in order to make sure consumer expectations are met.

  3. High Risk Chargeback MitigationChargebacks

    Hand-in-hand with consumer expectations is the concept of chargebacks. These occur when a customer decides to reverse their payment through the bank that made the charge. It’s one step further than asking for a refund. Moreover, it occurs when a customer has issues with a product or your customer services.

    Chargeback mitigation companies help ensure you won’t be a victim of fraud. It’s important to know the different ways fraud occurs in chargebacks. One of them is friendly fraud which is when a customer files a chargeback knowing that they have the product, and they claim that they haven’t received it. Knowing the types of chargebacks that occur in your company is critical for finding the right mitigation resources.

  4. High Ticket Items
  5. Some hard to place merchant services are companies that sell expensive items. Oftentimes, this happens when a company has few transactions at higher dollar amounts. This is common with antiques, precious metals, jewelry, and coaching services.

    If a business gets a chargeback on one of these transactions it will increase their chargeback ratio substantially. This is why it’s considered less risky for banks to support businesses with many smaller transactions. Nonetheless, some products aren’t sold for cheap, so if you’re in a high-ticket industry, know that you qualify as high risk.

Merchant Services for High Risk Businesses

Finding merchant services for high risk businesses is easier than you think. There are multiple types of services that you’ll want to have. The key ones PayKings offers are merchant accounts, and payment gateways. These two payment processing tools are essential for your online store. The payment gateway serves as your virtual terminal. While your merchant account connects to your business’ bank. Both work together and help you serve customers at the end of their purchase journey.

More Solutions for High Risk Merchants

PayKings has a vast network of partners and resources to make sure your business keeps running at full speed. With established chargeback mitigation experts, we can help you overcome and avoid fraud and harmful refund practices. Moreover, our connections in fulfillment, marketing, and shopping cart management help you grow your business fast and sustainably. 


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Kyle Hall CEO

May 19, 2023 | Merchants | Kyle Hall