No-Chargeback Merchant Account

high risk merchant account payment gateway
Bankcard was referred to me by my developer. From the jump, they were impressive. They were super responsive, they asked great questions and their solution was really robust. Also, working with Katherine and Hanna is a dream!
High risk merchant account
Emily Wallace

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no chargebacks

Every business hates chargebacks. Chargebacks indicate that the customer was dissatisfied with their purchase or their interaction with your company. They may indicate that the transaction itself was fraudulent, which makes things even worse, as it indicates a charge that your company should never have processed. In some cases, the reverse is true, and a chargeback reflects fraud on the part of customers who are gaming the system. To make matters worse, they also come with fees charged by your merchant account provider. This almost acts as a sort of punishment for dropping the ball. No matter how glass-half-full of a person you are, there is simply nothing positive about a chargeback. You lose the sale and have to pay extra for the privilege.

Your options are somewhat limited. If you do business online, you must have a merchant account to process electronic payments. And deciding which type of account to get can be a challenge, particularly when it comes to addressing chargebacks. To solve this dilemma, you will need to find a reputable credit card processor like Bankcard to help you get the merchant account type that you need to limit damaging chargebacks and other fees

What Is a Chargeback? 

Ever watched your profits disappear? You will every time you get a chargeback. Chargebacks occur when a customer disputes an item on their transaction report or debit card/credit card statement. 

The issuing bank and/or the merchant can arrange for the chargeback. In either case, the merchant loses the revenue from the sale but only gets the merchandise back part of the time. If your company receives chargebacks, your merchant services company will also charge you a fee as a sort of punishment for putting through a potentially problematic transaction. It’s a double whammy. Limiting chargebacks is essential to your company’s fiscal health and cash flow and your peace of mind. 

Why Might a Bank or Credit Card Company Issue a Chargeback?

There are many reasons that a customer might seek a chargeback:

  • The customer might be unhappy with their purchase and seek a refund on it.
  • The customer may have forgotten that they even incurred such a charge. This is common in certain business models, like subscription-based businesses.
  • The nature of the charge on a credit card may be unclear, leading a customer to believe that their account has been hacked and their card has been used fraudulently. Businesses can limit these charges by working with their merchant account providers to ensure that they are clear about what the charge is in their description.
  • A credit card has been hacked and a purchase has been made fraudulently. When this happens, a credit card company will seek a refund on behalf of the customer. This represents a loss for all parties involved.
  • A customer may seek to game the system. They may use an item once and refund it after they get their use out of it. 
  • A product is of questionable legality or some sort of moral ambiguity, and the person who made the purchase is worried about getting caught. This is the case for some industries more than others, such as the adult industry.

What Are the Ramifications of a Chargeback for Your Business? 

No business goes without a chargeback. They are simply a fact of business life, and every business has to plan to incur chargebacks. Having too many chargebacks means a high chargeback ratio, which will lead to a variety of negative implications for your business. 

In addition to a profit loss, you may find that your business no longer qualifies for a regular—or low-risk—merchant account. Low-risk merchant accounts are what give businesses standard access to credit card processing, online payment methods, and more. Most businesses have a low-risk account, as they have lower chargeback ratios and don’t need the high-risk services that a high-risk payment gateway offers.

High-risk merchant accounts can be very helpful for businesses that are in certain industries. They do come with a variety of additional burdens, including:

  • Higher processing fees, thus eating into your already thin profit margins.
  • Higher cash reserves from the payment processor, thus ensuring that you will get less money in the form of bank transfers.
  • Higher fees for card chargebacks, something that can be problematic if you already suffer from a high chargeback ratio.

Alternatively, your business may benefit from a no-chargeback merchant account. 

What Is a No-Chargeback Merchant Account?

A no-chargeback merchant account is simple: You simply don’t offer chargebacks. You may offer refund or exchanges, but you will never allow a customer to exchange what they have for a credit or debit card refund. This means that your purchases are essentially final. 

You can set this up either in person or on your website. If you set up a no-chargeback merchant account in your retail establishment, you will need to update store policies and make sure that you place ample notification in your store about the no-chargeback option. This ensures that your customers fully understand that they cannot get a credit card refund on any purchases that they make.

These options are not for every business, but there is no question that they have a variety of benefits for certain types of businesses. The benefits here include:

  • No chargebacks mean less work and hassle for your business. Even in the best of circumstances, a chargeback leads to inventory confusion, refunds on your part, additional work with merchant processors, and more. If you do not offer chargebacks, you cut out the possibility of needing to engage in this extra hassle.
  • Some types of businesses are more prone to customers gaming the chargeback system. This means that they will make a purchase with the intent of returning that purchase, thus incurring a chargeback for the business in question while giving themselves a “free” use of a product. If you don’t offer chargebacks, you can eliminate the risk of incurring such fraud. 
  • You can remove one worry from your accounting systems when it comes to having stable and predictable profits. One of the big problems with chargebacks is that they eat into your profit. This is because you have to process returns and take money out of your own bank account. Eliminating chargebacks reduces the possibility of this occurring.
  • You eliminate chargeback fees. Chargeback fees are expensive, potentially costing you as much as $100. This can obviously be a huge hit to any business. Eliminating chargebacks means you won’t pay any chargeback fees. 

If you’re interested in a no-chargeback merchant account, you have many options, You’ll need a business with decades of experience in the area of preventing chargebacks, has worked with credit card processors, or has worked directly with banks and merchants that have experience in this area. If you’re interested in pursuing such services, consider reaching out to Bankcard today. 

Can My Business Set Up a No-Chargeback Payment Gateway on My Website? 

Yes. This is a good option for many online businesses that are looking to reduce the need for chargebacks. This is done via accepting only bank-to-bank money transfers. That way, any problem with the merchandise or services received will have to be worked out directly with the business. If you choose this option, you will of course try to satisfy unhappy customers, but the decision on what to do will remain in your hands. A third party will not routinely be involved with disputes.

The no-chargeback option means that you will install a payment gateway on your website that allows for direct bank to bank transfers instead of credit card or debit payments. This transaction is another type of secure online payment that is convenient for your customers and frees you from chargeback risk. 

When a customer pays, the money goes into your account and does not involve a credit card company or issuing bank. This process makes chargebacks impossible and protects your store revenue from illegitimate complaints. You have more power in anything that happens after the sale. Your store policies will dictate your response to complaints instead of the decision of a third party. You decide if the customer gets their money back. 

Who Can Benefit from a No-Chargeback Account?

As you can see, there are many benefits to a no-chargeback account. That’s not to say that it’s appropriate for all businesses, but for certain businesses, this service may be well worth it. The businesses that may see a substantial benefit from a no-chargeback account include:

  • Businesses that are particularly susceptible to online fraud.
  • Businesses that do extensive business overseas, where such fraud is more likely to occur.
  • Businesses that have extensive “card not present” transactions.
  • Any business that falls into a high-risk category, as these businesses are already more likely than normal to incur significant risk in their line of work. Furthermore, some businesses may face such high risk that they are unable to obtain a merchant account without creating a no-chargeback option, as a vendor may not be willing to take on the risk that their business naturally faces.
  • Businesses that process particularly high-value credit cards transactions, such as travel and hospitality, property management, payday loan collection, or more. If you have a high-value credit card transaction and offer chargebacks, you risk a very high chargeback fee and a loss of substantial revenue.

How Can You Eliminate the Need for Chargebacks?

The key to a no-chargeback merchant account is working to eliminate chargebacks, to begin with. Remember, no chargebacks mean no refund. This means that you will have real customer satisfaction issues if you don’t adequately prepare for such a business switch.

Experienced card processors who have operated no-chargeback accounts understand what this is like, and they’ll be able to work with you to manage your risk and ensure that you’re keeping your customers happy and coming back for more. 

Reducing chargebacks means that your business will have to take multiple steps. Chief among them is the need to be transparent with your customers. No customer likes a surprise, and you will have to ensure that they fully understand that there are no chargebacks given in your business. If they don’t, you will have to manage very upset customers.

Other steps include:

Improving Customer Satisfaction

Keeping customer satisfaction high is one basic way to prevent these requests.  You can work to minimize chargebacks by providing excellent customer service. Encourage consumers to come to you if they are not satisfied instead of reaching out to the issuing bank and their credit card company. Even if you accept their returns, you will avoid extra chargeback fees and retain strong customer relationships. Alternatively, instead of giving their credit card a refund, you can offer to exchange the good that they are returning for a gift card or an alternative item. This keeps your customers happy, proves your dedication to excellent customer service, and eliminates the need to incur a chargeback. 

Chargeback Monitoring

You can also improve your transaction monitoring to detect more fraudulent chargebacks—those instigated by consumers who claim they did not receive an item when, in fact, they did or those who try other financial scams such as using stolen credit cards to make purchases. You can buy software that tracks chargebacks to detect fraud, making it easier for your accounting department to spot and report these issues. You’ll be better able to separate friendly fraud—customers who forget or do not recognize charges and dispute them—versus true criminal intent when you have a detailed monitoring policy. 

ACH Payments

You can also help your high-risk business by choosing alternative payment options. For instance, the Automated Clearinghouse has been around for decades. ACH payments are a little like wire transfers. They cost less to process and are easy to use, making them a solid alternative to credit card payments. Consumers use this safe and easy platform to pay for their purchases through their bank accounts. The transactions are not immediate, they may take a few days, but customer financial information is protected by high-security measures. This option appeals to those who do not like to use credit or debit cards but enjoy the ease of online shopping. The Bankcard team can help you add this option for your consumers. 

ACH payments do offer benefits to merchants, but you will still face the possibility of chargebacks. Consumers have up to 90 days to challenge a charge through the clearinghouse, so you may still have to battle to keep your money. 

Are There Alternatives to a No-Chargeback Merchant Account?

Yes. A no-chargeback merchant account simply isn’t for every business. In these cases, you may want to pursue a high-risk merchant account. Such an account is an alternative to a no-chargeback merchant account. It will allow chargebacks. High-risk merchant accounts also come with a variety of other benefits. These include payment gateways, eCommerce payment gateways, cryptocurrency payments, and more. As noted above, there are also many drawbacks to this payment processing method.

You will need to work with your merchant account provider to find the payment collection method that is right for you. 

The Bankcard Advantage

Do companies such as Mastercard and Visa consider your company high-risk and want to charge you excessive fees on your merchant account? Consider using Bankcard services instead. Bankcard professionals can effectively manage your high-risk account, whether you are simply a high-volume merchant or one that is in a high-risk industry. Sadly, you may be considered high risk simply because you have a high number of chargebacks. The experts at Bankcard can offer you solutions to your electronic payment problems that will improve your bottom line while maintaining strong relationships with your customers.

Our team will work with you through the merchant account application process to expedite your approval. As our customer, you will receive help with common problems, including chargebacks, customer fraud, and high account fees. We partner with you to find the best payment processing solutions, including merchant accounts for high-volume businesses. Successful clients are a top priority for our team. 

The cost of doing business can be high, especially if the credit card processing industry considers you a risky business. Choosing the wrong payment processing company means you pay more than you should for services that every eCommerce merchant needs. Whatever harms your business hurts ours. Bankcard helps you maintain the right balance between customer service and your company’s financial health. 

Contact Us Today

Do not fight the chargeback battle alone. Contact our professional staff today and find out how the no-chargeback gateway can benefit your business. Let Bankcard minimize your merchant service fees, including chargebacks, while offering superior electronic processing services. 


Bankcard Connect plays nice with others

Bankcard Connect integrates seamlessly with ISV software to simplify payment processing for merchants: any payment type, on any device, anywhere. 

Bankcard integrates with over 99% of the tools you are already using, including popular accounting software and e-commerce apps, regardless of your industry. Our payment services were designed to be adaptable to provide seamless integrations for our customers.

merchant account integrations c

Microsoft Dynamics
Network Solutions

Event Espresso
events manager
Paid Memberships Pro

Drupal Commerce


911 Software, Inc.
ACR Systems
Aldelo Systems, Inc.
Applied Micro Technology
Advanced Retail Management Solutions (ARMs)
Auto star
Cantaloupe Systems
Data Business Systems
Datacap Systems, Inc.
DataTech Corp
Edgil Associates
Epicor (CRS, NSB)
Freedom Pay
Gateway Ticketing Systems
Idalica Corp
IJN Systems
IT Retail
Main Street Softworks
MBS Textbook Exchange
Medasyst, Inc.
/n Software, Inc.
PC America
RATEX Business Solutions
Retail Data Systems
RTL Payment Systems
ScanSource, Inc.
Sicom Systems, Inc.
Slim CD
Tempus Technologies
Tender Retail Systems
The Software Mills
Tomax Corporation
Total Computing Solutions
TouchNet Information Systems
XProtean, Inc. (C-Payment Software)
XPient Solutions
Vista Entertainment Systems

911 Software, Inc.
Data Business Systems
Datacap Systems, Inc.
Main Street Softworks
Menusoft Systems Corp.
Micros Systems
Midnite Express, Inc.
/n Software Inc.
Radiant Systems
Revel Systems
Sicom Systems, Inc.
Squirrel Systems
Tempus Technologies
XPient Solutions
XProtean, Inc. (C-Payment Software)
Elavon (previously Southern DataComm and Global Card Services)

Dresser Wayne
Fuel Links
Fiscal Systems, Inc.
LOC Software
Main Street Softworks
Petro RX
Radiant Systems
VeriFone Ruby System

Datacap Systems
LOC Software

911 Software, Inc.
Hotel Software Systems
Slim CD
Tempus Technologies

Government organizations face a growing need for secure payment processing services while managing highly specific needs for content management and security. 

We can work with popular technology products government agencies prefer, like Ciber and Cubic, to create an integrated solution that meets all your needs for processing payments, managing information, and more.

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High risk merchant account payment gateway

We partnered with Bankcard in 2017 and they've been there for us every time. Everything is super fast and I love how well they communicate with our staff. They really know their stuff, and we work in a very complex industry! My account executive knows our business inside and out.

Alexandria, CMO

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FAQs: Table of Contents

Accepted Industries and Countries​

The industries we accept for high risk merchant accounts include, but are not limited to the below industries.

  • Adult merchant account
  • Bad credit
  • CBD
  • Credit Repair
  • MLM
  • Nutraceuticals
  • Payday loans
  • Private airlines
  • Subscriptions
  • Travel
  • Vape & eCig
  • Illegal business activity
  • Businesses without the proper license
  • Illegal drugs (CBD with less than 0.30% THC is acceptable)

Bankcard can provide merchant accounts to customers in the below countries. Kindly note that many payment solutions are regulated based on location.

  • Andorra
  • Austria
  • Bear Island 
  • Belgium
  • Bulgaria
  • Canada
  • Channel Island
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Faroe Islands
  • Finland
  • France
  • Gibraltar
  • Greece
  • Greenland
  • Hungry
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Monaco
  • Germany
  • Netherlands
  • Norway
  • Portugal
  • Romania
  • San Marino
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Turkey
  • United Kingdom
  • United States
  • Vatican City

Being a start-up business will not hinder a business from getting approved for a merchant account. While having a processing history helps your likelihood of getting approved,  the lack of processing will not necessarily stop you from getting an approval. Consult an experienced Account Executive today to learn more. 

There are never guarantees when it comes to the approval of a merchant account. However, we do work with merchants that have low credit scores. Reach out to an Account Executive today for a consultation. 

If you’re a United States citizen applying for a merchant account for a United States registered business, a social security number is required. 

A merchant account can be labeled high risk for many reasons. You can be labeled as such due to high average tickets, being in an industry that historically has high chargebacks, or an industry that tier one banks do not support.

Applying for a merchant account

To apply for a high-risk merchant account, you need to complete our pre-qualification form and upload all required documentation. Once the pre-qualification is complete your Account Executive will locate the best placement for your account, and send you a final agreement. Once that final agreement is signed, underwriting will complete a full package review for approval. 

There is no fee to apply for a merchant services account with Bankcard. However, If you get approved with us there may be a small setup fee for your gateway account.

Square, Stripe, and Paypal are all payment facilitators and do not accept high-risk merchant accounts. Signing up with Bankcard gives you a direct merchant relationship with a sponsor bank. The approval process requires more documentation, but you’re at a significantly lower risk of getting terminated.

This depends upon how quickly you, the merchant, completes our pre-qualification form. Once we have all of your documentation, we get to work. We can typically locate placement for your merchant services account in 48 hours.  

Once you get an approval, you’ll be able to accept credit card payments within 24 business hours. 

Depending upon the program, you will receive your funds anywhere from 24 to 72 hours after the batch is settled. 

The industry type is a major determining factor when it comes to risk levels of merchant services. But, other factors such as credit, card-present vs not present, and chargeback ratios can also push an account into the high-risk category as well. 

Completing the Application

Your legal business name should match the business name on the state business registration or licensure. However, if you are a sole proprietor, your name would be the legal business name. 

If you’re not sure how much processing you’ll do, we recommend applying for $5,000 to $10,000 monthly. You don’t need to hit that number each month, but if you’re close to going over, reach out to your Account Executive for assistance. 

Your average transaction amount should be the average of all transactions you would accept with your merchant account. Your maximum transaction should be the anticipated maximum amount accepted in one transaction. If you attempt to process a transaction that is higher than the maximum amount provided, additional proof of purchase may be requested. 

You may provide personal bank statements in lieu of bank statements if your business bank account is new or does not have any activity. 

If you’re applying for a merchant account for ecommerce processing you will need a fully functional website with products or services listed with associated pricing. 

Yes, a credit check is required in order to obtain a high-risk merchant account. Once a final agreement is signed, a hard credit pull is done.  Credit scores are taken into consideration when underwriting reviews a full application for merchant services. 

If you’re a United States citizen applying for a merchant account for a business registered in the United States, your social security number will be required to apply. 


The first step to applying for a high-risk merchant account is completing the pre-qualification form. Three months bank statements, three months processing statements (if applicable), a voided check or bank letter, and driver’s license or passport will be required to apply. 

If your business does not utilize checks, we can accept a bank letter that includes your full account and routing number as well as the business or account holder’s name. The letter should be on bank letterhead, be dated within the last 30 days, and be signed by a bank representative. 

If you don’t have three months of business bank statements, don’t fret. We can accept three months’ personal bank statements from a business owner, or director. 

Bank statements show a lot about a prospective merchant, namely, processing activity, and the average monthly ending balance. If a merchant is currently processing, we want to know why they’re switching, if we know a merchant’s pain points we can find better solutions for their needs. The average monthly ending balance is also relevant to show financial stability within the business as well as validating the monthly volume requested.

If a merchant is currently processing credit card payments and successfully managing a merchant account this can increase the likelihood of getting approved. Some payment facilitators such as Paypal, Stripe, and Square might not supply monthly processing statements. Underwriting may request login credentials so they can get an overview of the processing activities. 

Equipment and Gateways

For in-person retail card acceptance, Bankcard can provide equipment that will arrive programmed and ready to accept payments. Discuss your equipment options with your experienced Account Executive.

Here at Bankcard, we do offer our own gateway solution that’s exclusive to merchants that sign up with us. Of course, if there’s a gateway you prefer we are willing to work with you as long as integration is possible. Please reach out to your dedicated Account Executive for details. 

Bankcard integrates with NMI,, and more. For specific gateway integration questions reach out to an experienced Account Executive. 

Your merchant account will be set up to accept Mastercard, Visa, American Express, Discover, and ATM cards. 

Load balancing is the strategy of spreading transactions over more than one MID. It’s not necessary for all high-risk accounts, but can be considered as a way to manage chargeback ratios with high-risk merchants. 

Existing Merchant Accounts

Not to worry, this number can be increased as needed. However, the bank underwriting your merchant account needs to be aware of the expected monthly volume to ensure they have capacity available for all merchants processing with that bank. 

If you go over by a small amount you might be asked for a copy of the invoice or receipt. However, if you go over the monthly limit by a large amount there is a chance your excess funds might be held temporarily. 

When it comes to high-risk accounts, banks ideally want chargeback ratios below the 3% threshold. If you can provide long term processing history the bank may take this into consideration. Lower chargeback ratios are ideal. Consult your knowledgeable Account Executive for assistance in lowering your chargeback ratio. 

Rolling reserves are a way to financially protect the processing bank from potential losses from chargebacks or refunds. Not all high-risk merchant accounts require a rolling reserve. The risk department will determine if and when a rolling reserve is required. 

Interchange fees refer to the issuing credit card brand fees such as Mastercard, Visa, Discover, and American express. These fees vary depending on the card type, American Express tends to be the most expensive card to process. Interchange rates can range from 1% to 2.5%. 

Of course! Once you’ve established a healthy processing history, you may reach out to your Account Executive for a rate review. We recommend only doing this if your processing history shows low chargeback ratios and relatively low refund activity. 

You may request an increase in your monthly volume at any time. However, it’s recommended to wait until your merchant account reflects healthy processing history as well as financial stability from your bank statements. 

Reach out to our support team, or your dedicated Account Executive for any account-related updates you may need. 

Depending on the program your merchant account fees are either taken at the beginning of each month. Some programs require daily discounts. Program details will be notated on your final agreement and if you have further questions you can always consult your Account Executive. 

ACH payments

Bankcard can assist with ACH or eCheck services. An application and approval process still applies to this service, or it can be an added service with your processing account. Reach out to your Account Executive for details. 

The approval process requires less documentation than applying for a merchant services account. And if you’re already processing with Bankcard an approval can be expedited. 

Every account is different, however, most programs allow next-day settlements for ACH transactions. 

ACH payment acceptance can be integrated into most website platforms. Reach out to a dedicated Account Executive for more information. 

Pricing and Approval

High-risk merchant accounts are priced higher than low-risk accounts because fewer banks are willing to work with businesses labeled “high risk”. Banks also need additional financial protections from loss on these accounts.  

Bankcard will always provide fair pricing based on the risk level of every merchant. And if a current processing statement is provided we’ll do everything in our power to beat the merchant’s current rates. 

While we love working with merchants that are considered high risk. There are limitations put in place by bank and card brand rules. If a merchant does not abide by the specific program rules described by the Account Executive assisting them we cannot ensure an approval.

Think of merchant accounts as a loan or a line of credit. And processing banks take on the risk of transactions getting charged back. Banks can end up liable for the actions of merchants, a problematic merchant can damage the reputation of the bank funding and processing the transactions.