With an explosion in e-commerce services, businesses are blooming in the new way of shopping that conducts transactions of goods and services in exchange for currency. It has given way to an entirely new industry sector that handles the transactions that are known as payment service providers. These service providers have their way of classifying businesses to provide payment methods to the customers. Low-risk businesses are easy to work with, but high-risk enterprises have difficulty finding a PSP to work for them at reasonable rates. The high-risk merchant account Canada comes under the latter, with numerous hoops and loops to cover when at work. So how do you choose a high-risk credit card processing service for your high-risk business? Read on to find out.

What is a high-risk business?

A high-risk business is a commercial way to classify your business that has the potential ability to cause more chargebacks or frauds. By doing business, you are directly exposing yourself and the bank to taking plenty of risks that can put them in debt or even bankruptcy. If not taken care of properly, the chances of losing the capital invested dramatically increase.

What decides the risk factor of your business? 

The chargeback quantity decides the type of business you have: if the chargeback is greater than 1% of the sales, you have a high-risk industry. In simple terms, for every 100 orders, you must have less than one chargeback. Anything more significant than that warrants you to have a high-risk business, requiring extra precautions and careful maneuver. You must analyze the source of the chargeback that you are getting. For instance, it can be a stolen credit card or fraudulent orders. Never mind if your product is excellent and has a more positive customer base, but do not risk taking such a business because even one bad experience can get you into trouble. Always consider setting up a secure website that requires more security and verification from your customers. You must get a payment gateway set up to record and verify every transaction by the bank.

What is high-risk credit card processing?

If you are a high-risk business, you require a high-risk merchant account with a PSP that allows you to accept credit and debit card payments for your business. The liability involved in the business that can cause several chargebacks and frauds is the reason for the name: high-risk merchant account Canada.

What factors to consider when searching for high-risk credit card processing in Canada:

You can ask your bank or look for different payment processors on the internet. The payment processor will take care of all fraud issues, give you a risk score, and charge additional fees. So it is essential to choose a suitable payment processor according to your business needs. You should also read reviews about different fraud detection companies and then make the decision.

Research top high-risk service providers:

You want to find a merchant service provider that has a considerable amount of experience when working for a high-risk business. Try to find a service provider that has worked with the same industry as yours. So you know that they know how to take care of the type of products-n-services your business provides, type of customers arriving at the payment gateway, and transactions taking place. Read online reviews and research the payment processor before any further decisions.


Higher fees usually indicate that the processor is more suitable for high-risk businesses and at the same time offers better service. A high-risk business requires an ultimate payment service provider that takes care of the process with such expertise that it leaves no room for fraud or criminal activities. Higher fees of the processor allow you to judge the overall service they will be providing. At the same time, you do not want to overshoot the budget of your business income, so you must consider the following factors as well.


Another factor is the rates of the services they provide and the rules and regulations. Make sure you know all the risks that you run when you sign up for your business with the high-risk credit card processing company of your choice. They may have a specific fee structure like Monthly statement rate, Fee for setting up, Interchange rate, Minimum cost, Termination fee. All of these fees are generally higher than low-risk businesses for high-risk credit card processing, but that does not mean there is no fee inflation. You can cut down on some factors in this criteria according to the services required against the ones you do not want.

Preset limits:

Some PSPs allow only a certain number of transactions that they will allow. It is in place for merchant account security to prevent high losses in case of fraudulent activities and limit your business if it takes off. Either look for one that allows unlimited transactions or the one that offers short-term contracts so you can make modifications or switch when required.

Chargeback protection:

If you or your customers get unsatisfied with their purchases, they can always demand a refund from the credit card companies. That is called chargeback, and it isn’t enjoyable for any business. If you partner up with an expert, that company will offer a chargeback protection service that ensures that you do not deal with such requests.

Look for short-term contracts:

When you are looking for a payment service provider, you will notice that many of them try to bind the businesses that require high-risk credit card processing in a long-term contract. Sure, you may want to go for this. Still, you do not know what changes your business might require in the future that may lead to incompatibility or severely limit the extension of your business activities. Therefore look for the service providers that provide you with a month-to-month contract.

Fraud prevention:

The PSP must provide a safe and secure way for the merchant account to transact and carry out business so that no frauds prevail. Or even provide technical solutions to stop suspicious inauthentic activities. They should be well versed in the regulations, like PCI DSS, PSD2, and GDPR.

Business model:

A good company knows how to profit from its work, but a great company knows how to maintain and increase that profit. Your high-risk business requires an equally efficient high-risk processor with a business model that aligns with your business requirements. For example, e-commerce gaming companies have a more significant number of checks to ensure no scams occur. They have a transparent business model, and they always try to achieve it.


If your business is processing payments through cards and wire transfers, you need to know all the details about the company you choose to provide their service for you. It includes any reports about their security audits and other important information. You can read about these audits on their official website or ask them directly. The

Customer service:

The best processors take care of their merchants and serve them professionally. They should be ready to help you 24/7 and make themselves available by chat or phone call. These payment providers are preferable over those that do not offer support services in various time zones. After all, you may need customer service anytime to sort out a big issue of the minor that occurs in any time frame.

Payment gateway:

you want a good-looking payment processor website as no one likes entering the market on something poor-looking. Most processors provide a modern-looking platform, but some may surprise you with something even better. Even though this is not an essential feature, it is worth mentioning on the list of things to check when looking for a cryptocurrency payment processor.


Keep in mind the above factors in choosing a worthy PSP for your business. You will have the most significant advantage in your industry if your PSP for high-risk credit card processing is compatible with your business structure.

Read Also: How to Keep Your Credit Score Clear?