Apply Now
What are the Pros and Cons of Accepting High-Risk Payment in the UK?

High-risk payments are the online transaction that takes place when the chargebacks are involved and the use of credit cards. Your business will need a high-risk merchant account to facilitate the payment. Many industries such as tourism and gambling may not have an alternative as the service provider may not offer the low-risk account for the business.

You cannot blame the service providers as they have to manage disputes with these accounts frequently. Also, these companies will charge your business for a chargeback if the customers are successful with their complaint. There is no alternative to these high-risk merchant accounts if your industry faces chargebacks and you want to accept credit card payments.

Here, we will discuss the pros and cons of high-risk payment for businesses in the UK to help you decide whether to avail of credit card payment or not.

Cons of High-Risk Payment Account

High Fees

The service providers will increase the processing charge for the transactions on the high-risk merchant account. As a result, it will decrease the profit from the same sales as compared to low-risk profiles. Therefore, it is not a cost-efficient method to accept payments from credit cards.

The service providers will also charge an additional cost for the chargebacks. Businesses with an extreme number of chargebacks pay more fees than others. Even the setup cost is high for these accounts because of the risks of chargebacks.

The cash flow may suffer because of these additional costs. However, they can easily be covered if you are willing to take out very bad credit loans with no guarantor from a direct lender. The loan amount will support the setup cost for the payment gateway and other inevitable expenses.

Lower Customer Conversion

Some of the service provider for high-risk payment will implement strict measures to complete the transaction. Thus, it will reduce the risk of frauds through online payments. However, some genuine transactions will not go through in a highly secure environment.

This will limit the growth of your business with plenty of declined transactions. In addition, the customer conversion rate will reduce in the absence of smooth check out.

Lengthy Process

The process to implement a safe payment gateway for high-risk payments is not easy. First, the risk management experts will go through the business details to qualify it for the high-risk merchant account. Moreover, the number of previous chargebacks may hurt your chances to get the merchant account from the desired service provider.

Reserve Requirement

The payment gateway will ask your business to put some money in the reserve for a high-risk merchant account. It will ensure the customers will get their money back in case of a dispute. This may seem intimidating for a new business as the money is already limited.

Thus, you may need financial support to fulfil the reserve requirement of the payment gateways. Many businesses take quick loans in the UK for the reserves. The loan amount will worth the interest paid with the increase in sales and revenue.

Pros of Hight-Risk Payment Account

Revenue Increase

Your revenue will increase with the introduction of credit card in the payment options. It is a common practice in the professional world to improve the sources of payment to increase sales. Unfortunately, many customers cannot complete the transaction because of the unavailability of the preferred payment mode.

Recurring payments will require high-risk payment providers because these businesses need the payment mode to upsell themselves. Even the customers will trust the brand if a secure payment medium is provided. Your business will take advantage in the short-term and long-term with the increased revenue from credit cards.

Global Growth

Credit cards are among the global payment methods that people from different countries use to order online. Your business will gain international recognition only if the payment gateway for high-risk transactions is safe. Customers from various regions need a reliable source of payment to trust a new foreign brand.

Again, the overall revenue will increase with the overseas sales from the online business. There are endless businesses that offer services such as booking and video streaming without the demographic constraint. Thus, they will require a credible payment gateway for global customers.

Moreover, you can promote the product to the right audience in the international market with the available payment gateways. The discrete transactions such as gambling and adult entertainment are better suited with these gateways. Thus, you are serving a diverse audience worldwide to make the best of the available opportunities.

Customer Verification

The customer verification process has been difficult to crack in earlier years because of limited methods. You cannot trust the email ids as they are created within a few minutes with fake names. In addition, the mobile number is information customers don’t feel comfortable sharing with some new brands.

Nevertheless, you can use credit cards to verify customer accounts, from bots to genuine profiles. Also, you can use them to provide promotional offers such as free-to-use services for a limited time. It will ensure a single person is not creating additional accounts to use the offer.

Chargeback Protection

The low-risk merchant accounts are closed if it reaches a certain number of chargebacks after customer disputes. You don’t have to risk the accounts because of some inevitable conflicts in your industry with a high-risk merchant account. Instead, the service provider will increase the threshold for the chargebacks.

Many businesses find themselves in search of a high-risk merchant account because their original account is terminated. You will lose sales from the credit card until the new account is created.

You should select the high-risk merchant account from the start to avoid this phase of no credit card payments. A few chargebacks won’t result in account termination. However, it is essential to keep these chargebacks in check as the risk of account termination is still there.


To sum up, high-risk payment acceptance is one of the essential parts of businesses in many industries. As a result, your customers will feel safe and secure while trusting your brand with their credit card credential and money. Therefore, you should invest in the high-risk merchant account if the risk of chargebacks is high.