How to open an account in the payment system for a high-risk business

Being a part of the payment system would allow a business owner to accept payments on the website. But the specific nature of the business itself does influence the process, especially such characteristics as high-risk. In this article, Genome will talk about types of bank accounts, high-risk businesses, high-risk payment processing, and how to open a high-risk merchant account.

The difference between bank accounts

There are three types of accounts in the banking world: personal, business, and merchant. Each serves various purposes and consists of different functionalities. Thus, a personal eWallet allows an owner to benefit from the financial services with electronic money. 

A business eWallet comes in handy for any business, from freelance for the comfortable funds’ separation to big corporations with multiple business account roles and expenses tracking. Both business and private bank accounts allow receiving money, collecting it, transferring it, and performing purchases, which represent the basic financial operations.

However, a merchant account is a little bit of a different entity. Its primary function is to receive electronic payments from payment cards and other payment options available. Its second function is to transfer these accumulated funds to a business account of the same owner. And that’s about it. Using a merchant account, a person can’t purchase intentionally nor subscribe to automated payments and can’t transfer funds to any other space except their business eWallet. 

Notice that a merchant account is the only account that authorizes a business owner to accept electronic payments both in retail and online via eCommerce platforms. Other bank accounts are not eligible and simply won’t do the job. Without a merchant account, the payment itself can not be made, but there are other options.

Private account	Business account	Merchant account
Allows a client to participate in managing their funds	Allows managing business funds	Authorized to collect electronic payments from customers

Quick overview of what is a high-risk business

A high-risk business is a business that potentially can generate a considerable volume of chargebacks. As simple as it is, it’s risky for banks to work with such companies: chargebacks are pretty dangerous to financial systems as they can withdraw funds automatically from banking systems and hide fraudulent actions. And that is why they label them high-risk. To clarify, to be high or low-risk is not equal to being in bad or good business. Instead, it is just a category that separates different ways of financial treatment. 

For instance, to open a high-risk merchant account would mean going through a more complicated procedure of issuing, and in general, an owner would face more requirements and pay higher fees for launching and processing. It is also how opening a high-risk merchant account differs from a regular merchant account issuing. The launching procedure is usually more welcoming and undoubtedly less pricey for the standard low-risk account.

How does a merchant account give access to a payment system?

An opening of a high-risk merchant account is just a first step that enables an owner to proceed with implementing a payment system including a high-risk payment processor. The thing is that when one does want to sell through a website, there must be several steps performed until it is possible.

Steps of implementing a high-risk payment processor

1. Find a reliable merchant account provider.
2. Open a high-risk merchant account.
3. Implement the payment gateway tool onto the website.
4. Test the connection with a high-risk payment processor.
5. Start accepting payments online.

How to open a high-risk merchant account?

We recommend a reliable and secure provider, to open a high-risk merchant account that provides European accounts in all areas, including Denmark. Genome offers a full financial ecosystem that includes private, business, and merchant accounts* with lots of financially fluent features. 

Besides that, Genome exists fully online and supports financial innovations. Thus, merchants* and business owners are welcome to benefit from simplified processes of application and verification. Yet, extremely secure ones.

Open personal account	Open business account	Open merchant account*
create separate accounts in one eWallet	all of the benefits of a personal account + perform business transfers with templates	all of the benefits of personal and business accounts + accept payments online from payment cards and other methods
keep and exchange funds in GBP, EUR, USD	share and administer the account access to other employees	use Genome ecosystem to do finance fluently
benefit from instant transfers	advanced business analytics	have access to merchant analytics

*Please note that Genome’s merchant services have been temporarily unavailable since September 2024.

Genome: open a high-risk merchant account online*

1. To open an account online, create a business eWallet; 
2. Fill in the merchant data such as descriptor, website address, account name.
3. Attach the following required documents: domain ownership proof, processing history of the last 3 months or a composed business plan for new merchants, supply agreement to the website.
4. Pass the verification.
5. Contact the team in order to install the payment system on your website.
6. Accept payments online and benefit from financial services including a high-risk payment processor.

*Please note that Genome’s merchant services have been temporarily unavailable since September 2024.

FAQ

How do I open a high-risk merchant account?

Find a reliable provider. For instance, Genome presents a full ecosystem of private, business, and merchant accounts*. And it enables all the merchant services needed for eCommerce.

What is a high-risk payment processor?

A payment processor is responsible for electronic payment facilitation. A high-risk payment processor would take care of the payments made to a high-risk business.

How do I implement a payment gateway in my business?

First of all, you would need to open a high-risk merchant account. Then, the provider would enable merchant services, where a payment gateway is available. After, a provider sets up the service.

How much does a high-risk merchant account cost?

This would really depend on the business type, transactions amount per month, and merchant services required. Note that a high-risk account would cost more than a low-risk one. To find out the exact price, please contact Genome*, a financially reliable provider.