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The Top 20 Merchant Service Providers

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The Top 20 Merchant Service Providers

Cash discount processing will save your business money.

Table of Contents

What are Merchant Services?

woman inserting credit card into an EMV card reader

Merchant services help businesses just like yours accept payments made by your customers. They provide merchants with credit card processing services that are only available through merchant service providers.

Some of the products provided by merchant service providers would be credit card terminals, mobile card readers and POS systems. These merchant services provide you with a merchant account.

Why Do You Need Merchant Services?

credit card payment being processed in a coffee shop

Merchant services provide an easy way to accept payment using a credit and debit card. Most payment service providers pass card purchases through secure payment depots.

Merchant service products can come in many forms, like a virtual terminal, mobile card readers or various other credit card terminals.

It’s very helpful to have a merchant service provider, primarily so that your business can actually obtain a merchant account.

A merchant account provides a business with a way to accept alternate forms of payment from cash, like debit and credit card purchases.

This provides a very convenient and easy purchase method for both the business owner and the customer. Most POS systems will provide a very secure payment gateway to ensure that the customer’s payment is safe and secure.

The gateway provider will make sure that the customer’s private information remains private.

Why Are Merchant Services Important?

merchant services are important

Merchant services are important because they give your business more ways to accept payments than just cash. Merchant services also allow your business to be very flexible with in which ways they accept payments.

Depending on the POS software and system that you choose, your business could accept cards via a physical terminal, a mobile card reader or whatever is easiest and most convenient for your business.

Some POS systems can even help with inventory management and project management. 

Your business probably needs a merchant service provider. This is because it is the only way to gain a traditional merchant account.

The importance of a merchant account is that it is the only way to allow you to accept credit cards. It is vital, especially in these days as the use of cash continues to dwindle, that your business be able to accept credit card payments.

As payment technologies continue to evolve, so must your business to be able to satisfy your customers.

What to Look For in a Credit Card Payment Processor

woman paying by credit card in a cafe

When you ask, “How Do I choose a Merchant Provider?” Basically, you want a processor that offers either very low or actually zero credit card processing fees and will not try to sneak any hidden fees into your current rate.

You want a processor that very obviously puts your needs above their own. Doing this will save your business a fortune as you begin to see just how much many credit card processors charge incredibly high rates with all kinds of different transaction fees, many of which you’ve probably never even heard of.

Find a processor that is upfront with you and has plenty of experience in low cost credit card processing.

What to Avoid in a Credit Card Payment Processor

woman making a payment using her phone and NFC

Many credit card processing companies will try to sneak hidden fees onto their customers, hoping that they will not notice their processing rates suddenly skyrocket.

This is hardly a rare occurrence in the credit card processing industry. This has been a practice in the payment card industry for many years, and many companies are continuously basking in the profits that they’re taking from businesses just like yours.

Avoid processors that seem to only be interested in turning your profit into their profit. 

Brick & Mortar

SQUARE

  • Fees – Square offers a flat fee of 2.75% on swiped transactions, and a 3.5% + 15 cents fee on all manually entered transactions. 
  • Reputation – Square is largely known across businesses everywhere, but is used mostly by smaller businesses. This is because they have fairly consistent pricing that doesn’t differ from the rates that they provide.
  • Terminals and Systems – Square Register at $999.00, Square Terminal at $399.00, Square Stand for Contactless and Chip at $199.00, Square Reader for Contactless and Chip at $49.00, Square Reader for Mobile Devices at $10.00.

Dual Payments

  • Fees – Dual Payments offers a zero fee processing system that takes the processing fee away from you, the business owner, and transfers it to the customer.
  • Reputation – Dual Payments has a reputation of being one of the first zero fee processing companies in the United States and is consistently growing month by month. Businesses processing with them will see significant monthly savings from their previous processor.
  • Terminals and Systems – Dual Payments offers three different EMV terminals, the Ingenico ICT220, Pax S80 and Verifone VX520. Dual Payments will actually lend you a terminal at no cost for as long as you stay with them.

CENTURY BUSINESS SOLUTIONS

  • Fees – Century Business Solutions offers a fee of 2.69% + 19 cents on swiped transactions, and a fee of 3.69% + 19 cents on manual transactions.
  • Reputation – Century Business Solutions has been around for a long time and is known for providing a wide variety of payment systems, from online to brick and mortar and mobile processing. 
  • Terminals and Systems – They currently offer six different terminals; First Data FD410, First Data FD130, Ingenico iCT220, Verifone VX 680, Castles Vega3000 and Castles MP200L. Their terminals vary depending on which terminal your business chooses.

CHASE MERCHANT SERVICES

  • Fees – Chase Merchant Services offer a 2.75% fee on swiped transactions, and a 3.5% + 15 cents fee for manual transactions.
  • Reputation – Chase Merchant Services is known to be a payment processor that works well with large businesses that process large volumes, but not as well with smaller businesses because of the higher fees. 
  • Terminals and Systems – Chase offers countertop terminals, pay at table restaurant terminals, on the go solutions, online POS process solutions, and virtual terminals. Each type of terminal varies greatly based on which technology is chosen.

HELCIM

  • Fees – Helcim offers a subscription based pricing model, with retail being $15 a month, and online at $35 a month, along with various fees outlined on their website.
  • Reputation – Helcim is known for being one of the few processors that work on a monthly subscription, rather than charging per transaction fees. They’ve been known to be highly recommended for medium to bigger businesses.
  • Terminals and Systems – Helcim offers a mobile credit card card reader at $30.00, a wired countertop card reader at $229.00, a short range wireless reader at $649.00, and a long range wireless reader at $549.00, as well as a virtual terminal solution.

PAYLINE DATA

  • Fees – Payline Data works on an interchangeplus pricing model. They charge an interchange fee and a markup fee. So, their pricing is .2% + 10 cents and a $10 monthly fee for swiped purchases, and .3% +20 cents and a $20 monthly fee for manual purchases.
  • Reputation – Payline has a reputation of working well with businesses of all sizes, rather than just a certain size of business. 
  • Terminals and Systems – Payline Data offers the Clover Go for $125 + $11 a month, and the Ingenico iCT220 for $275.

PAYMENT CLOUD

  • Fees – Payment Cloud offers a swiped purchase fee of anywhere from .05-.3% + 10 cents, and a manual purchase fee of anywhere from .1-.5% + 15-25 cents.
  • Reputation – Payment Cloud prides themselves on covering high risk types of merchant accounts. They are known for their ability to take on virtually any client that needs a payment processor. If you are a highrisk business, like an insurance firm or real estate company, Payment Cloud could be right for you.
  • Terminals and Systems – They offer a virtual terminal, as well as four brick and mortar credit card terminals; Ingenico iCT 220, Ingenico iCT 250, Ingenico iPP 310, and Verifone VX 520 at varied prices depending on the model chosen.

SAM’S CLUB MERCHANT SERVICES

  • Fees – Sam’s Club Merchant Services offer a couple different pricing models. First, they offer a “value rate” pricing model that starts at 1.29% + 15 cents per transaction. Second, they offer a “simplified pricing” model that starts at 2.29% + 19 cents per swiped transaction, and 3.29% + 19 cents per manual transaction.
  • Reputation – A newer merchant service provider, Sam’s Club is usually not highly thought of. This is because of high rates and the requirement of a lengthy, longterm contract.
  • Terminals and Systems – Sam’s Club Merchant Services offer the Clover Flex, Clover Go, Clover Mini, and the Clover Static. Each comes at a different price available upon contacting them directly.

FLAGSHIP MERCHANT SERVICES

  • Fees – Flagship Merchant Services offers a confusing pricing structure. They charge $99 a year for a PCI compliance fee, $7.95 for a monthly fee, another monthly $7.95 to accept online payments, and a $25 monthly minimum.
  • Reputation – Flagship Merchant Services used to be regarded as the standard in credit card processing. However, due to their confusing pricing methods and very high fees, they have fallen a bit in the minds of business owners.
  • Terminals and Systems – Flagship, similar to Sam’s Club, exclusively used Clover products to process payments. These come in the form of the Clover Flex, Clover Station, Clove Mini, Clover Mobile, and Clover Go and vary on price based on model.

FATTMERCHANT

  • Fees – Subscription based pricing model starting at $99 a month.
  • Reputation – One of the first processors to go based on a subscription pricing model, rather than a per transaction fee, FattMerchant is regarded as a very reputable merchant service company among bigger businesses.
  • Reputation – One of the first processors to go based on a subscription pricing model, rather than a per transaction fee, FattMerchant is regarded as a very reputable merchant service company among bigger businesses.
  • Terminals and Systems – FattMerchant offers both physical and virtual terminals. Specifics about the types of terminals that they offer can be found upon contacting them. 

Online Processors

STRIPE

  • Fees – Stripe charges 2.9% + 30 cents per transaction.
  • Reputation – Stripe is a highly regarded online processor. They process exclusively online, and have a very big customer base thanks to their straightforward pricing model.
  • Terminals and Systems – Stripe uses virtual terminals. Prices per terminal varies, and Stripe should be contacted for the most up to date prices. 

SHOPIFY

  • Fees – Shopify’s pricing varies greatly depending on which of the three plans you choose. They have a Basic, Standard, and Advanced plan for customers to choose from. Each increasing level has a higher monthly cost, but has lower per transaction fees.
  • Reputation – Shopify is used mostly for small to medium sized businesses, and is highly regarded among business of that size.
  • Terminals and Systems – Shopify offers an all-in-one online and retail POS terminal called the “Shopify Retail Kit”. It is built with the purpose of providing both online and retail processing for the products in both the in-store and online shopping cart.

QUICKBOOKS ONLINE MERCHANT SERVICES

  • Fees – Quickbooks offers a 2.4% fee for swiped transactions, 2.9% for invoiced transactions, and 3.4% for manual transactions. Each fee has an additional 25 cents per transaction added to each fee.
  • Reputation – Quickbooks Payment Processing specializes in online and mobile processing. They have been known to work best with companies that already use Quickbooks’ accounting software to accept integrated payments for their personal or business accounting.
  • Terminals and Systems – Quickbooks has a variety of products available on their website and they should be contacted if you have interest in their services.

PAYPAL PAYMENT PROCESSING

  • Fees – PayPal Payment Processing charges 2.9% + 30 cents on swiped transactions, and 3.5% + 15 cents per manual transaction.
  • Reputation – People usually ask, “Is PayPal a merchant service provider?” Yes, PayPal is a merchant service provider for medium and small businesses. However, they are more known for processing smaller online transactions.
  • Terminals and Systems – PayPal exclusively offers a virtual terminal to process credit card payments. If you’re wondering “How long does it take to set up a PayPal merchant account?”, you should expect to wait around five business days as PayPal tries to set up your merchant account with your bank account.

AMAZON PAY

  • Fees – Amazon Pay charges a 2.8% + 30 cent processing fee on all transactions. 
  • Reputation – Amazon Pay, a newer processor, processes exclusively online. They have high reviews across the internet and work best with medium sized businesses.
  • Terminals and Systems – Amazon Pay exclusively uses a virtual terminal. Prices for their virtual terminals can be found upon contacting Amazon Pay directly.

BLUEPAY

  • Fees – BluePay has a confusing tiered pricing model that can be found on their website. On top of that, they charge many fees, including an early termination fee.
  • Reputation – BluePay largely has a poor reputation because of their pricing model and expensive, hidden fees and cancellation fees. Most companies that choose BluePay are medium sized.
  • Terminals and Systems – BluePay advertises on their website that they are compatible with all major types of terminals.

BRAINTREE

  • Fees – Braintree offers a flat fee of 2.9% + 30 cents on all transactions.
  • Reputation – Braintree, a branch of PayPal, processes almost exclusively online. The additional benefit that Braintree offers is the ability to accept PayPal and PayPal credit cards, in addition to being able to accept all major credit cards like Visa, Mastercard and American Express.
  • Terminals and Systems – As mentioned earlier, Braintree works almost exclusively online. Besides offering a virtual terminal, they offer an in-store, contactless card reader. The card reader, however, is meant for small volume purchases and is not recommended for bigger storefronts.

PAYSIMPLE

  • Fees – PaySimple offers two different monthly payment methods; Pro or Enterprise. Pro starts at $49.95 a month, Enterprise at $99.95 a month. The difference between the two pricing methods is that Pro offers a fee from 2.49% + 29 cents per purchase, while Enterprise has customized rates based on what the business owner wants.
  • Reputation – PaySimple can be used for an online store or an in-store businesses, but usually is more highly regarded overall for smaller businesses. 
  • Terminals and Systems – PaySimple offers a virtual terminal for online businesses, as well as a credit card terminal or an iPad POS system for storefronts and a mobile app capable of accepting mobile payments for on-the-go businesses. 

Non-Profit Processors

DHARMA MERCHANT SERVICES

  • Fees – Dharma seeks to keep your fees low. Their costs will vary depending on what type of business you are running, but their retail fees stay around .15% + 7 cents per transaction.
  • Reputation – Dharma Merchant Services has a strong reputation of being the best credit card processor for non-profit businesses. This is thanks to their lower rates and willingness to adapt to any changes that your non-profit might face.
  • Terminals and Systems – They offer a few different ways to accept payment depending on what your business is looking for. A few terminals they offer are the Verifone Vx520 at $179, the FD-130 at $269, and the Poynt at $599.

iATS PAYMENTS

  • Fees – iATS fees can vary, but usually fall between 2.49% and 3.2% per card transaction, depending on what kind of card is used and if the purchase is swiped or manual.
  • Reputation – iATS Payments is solely a non-profit processor. Unlike Dharma, who also work with retail businesses and restaurants, iATS is known for just working with nonprofits, and is highly regarded in doing so.
  • Terminals and Systems – iATS offers credit card readers in a couple different ways. Their readers can attach to already existing POS systems, computers or mobile devices in addition to the iATS app.
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Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

Turn Your Residuals into Immediate Cash Today

Selling your residuals doesn’t impact your merchants—they’ll keep processing happily. So, if you need extra funds, explore a credit card residual buyout. It’s fast, easy, and a smart move for your financial game plan.