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High-Risk Merchant

A high-risk merchant is one that has been judged by a processor or bank to present an increased level of risk for chargebacks and fraud. This may be because the merchant operates in a high-risk industry, sells products or services that experience a high level of chargebacks, or is prone to fraudulent transactions. High-risk merchants pay higher payment processing fees and are often unable to open a merchant account with many providers. Read more >>>

Holdback

A merchant reserve is an amount of funds held back by a merchant account provider to cover the costs of potential chargebacks. Merchant reserves are frequently required for high-risk merchant accounts. They often take the form of a rolling reserve, a percentage of each transaction that is held for a predetermined amount of time before being released. Read more >>>