1)High-risk merchant accounts are designed for businesses operating in industries that are more prone to chargebacks, fraud, and regulatory scrutiny. In contrast, normal merchant accounts are for businesses in less risky industries with lower chargeback rates.
2)High-risk merchant accounts typically undergo more stringent underwriting processes. The provider assesses the business's risk factors, financial stability, and compliance with industry regulations before approval. On the other hand, normal merchant accounts have a less rigorous approval process.
3)High-risk merchant accounts generally come with higher processing fees and rates due to the increased risk. While normal merchant accounts often have lower fees and rates.
4)High-risk merchant accounts provide specialized tools and services to manage and prevent chargebacks, as these businesses are more susceptible to them. Normal merchant accounts might not offer as extensive chargeback management solutions, as they don’t need them.
5)High-risk merchant accounts need to support a wider range of payment methods. For instance, a high-risk merchant account for e-commerce may have to include alternative and international options to cater to their diverse customer base. Although normal merchant accounts also provide a range of payment options, but high-risk ones take it to another level.
