Question 1

What is a high-risk merchant account?

Accepted Answer

A high-risk merchant account is a payment processing account designed for businesses in industries that traditional processors like Stripe and PayPal reject. This includes CBD, nutraceuticals, firearms, adult content, travel, and subscription billing. High-risk accounts typically have rolling reserves (5-10% held for 6 months), higher processing fees (3.5-8%), and require 5-14 days for approval with underwriting review.

Question 2

Why was my Stripe or PayPal account shut down?

Accepted Answer

Stripe and PayPal automatically reject or terminate accounts for high-risk industries including CBD, supplements, adult content, firearms, forex, and high-chargeback businesses. According to their Terms of Service, these processors use automated risk scoring that flags certain MCC codes, product types, and chargeback ratios above 0.9%. You need a specialized high-risk processor like Durango Merchant Services that underwrites these industries.

Question 3

What are rolling reserves and why do high-risk merchants need them?

Accepted Answer

Rolling reserves are a percentage of your sales (typically 5-10%) that the processor holds for 6-12 months as security against future chargebacks. High-risk merchants have higher chargeback rates historically, so processors use reserves as protection. For example, if you process $100,000/month with a 10% reserve, $10,000 is held each month and released on a rolling basis after 6 months. This is not a fee - you get this money back.

Question 4

Can I get approved if I'm on the MATCH list?

Accepted Answer

Yes, merchants on the MATCH (Member Alert to Control High-Risk) list can still get approved with specialized high-risk processors. Durango Merchant Services evaluates MATCH merchants case-by-case, with better approval odds for reason codes 04 (excessive chargebacks), 12 (PCI-DSS non-compliance), and 13 (identity issues). You'll need clean processing history since the incident and a detailed mitigation plan. The MATCH list lasts 5 years but approval is possible.

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High-Risk Processing

Durango Merchant Services

What You'll Need to Apply

Recovery Coach

What to Expect

24hr Response

Rolling Reserves

Dedicated Support

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