A High-Risk Merchant Account is a special type of merchant account that can be an online businesses such as a high priced e-commerce store, or an offline business such as a pawn shop or a law firm. High-risk businesses can include online gambling, online dating, software/hardware sales, and others.
See a complete list of high risk businesses. This type of account can involve receiving higher chargeback fees, more stringent chargeback policies, and higher rates and fees to compensate for the risk.
Once a merchant is categorized as high risk merchant account, there is chance the merchant account can be rejected or closed to protect issuing bank and credit card processor's interest. A merchant in the high risk industry should disclose as much as possible and provide as much detail as possible about their business in order to ensure they have a legitimate business and get approved.