Request a callback

What is a high risk business?


Question

What is a high risk business? What businesses the banks consider as high-risk? List of high risk businesses.

Answer

Index [Hide] [Show]

To carry out high risk businesses means additional controls and problems for its owner. When trying to open a corporate bank account or contract virtual POS, it is very often to hear that the financial entity doesn't offer its services to high risk businesses and therefore can not provide you with necessary tools to develop your commercial activity.  In general, the level of risk is measured by the percentage of chargebacks and refunds, years of impecable banking history, possibility to use the company for money laundering and country of incorporation. 

Having a high risk business doesn't mean carrying out illegal commercial activity, even though some people confuse these two definitions viewing them as the same concept. What it actually means is that your business involves risks or its nature is not socially accepted. For example, many banks reject applications of Tinder-type websites just because they don't want to include this type of activity to its portfolio, because of the bad reputation it can give, even though it is completely legal. 

Another reason why a financial entity rejects a Virtual POS and payment processing services to business owners is because the product it sells is considere legal in one country and in another involves a great bureaucracy, for example, tobacco-related businesses.

We would like to repeat, since it is very important to leave it clear that high risk business has nothing to do with illegal activities. Illegal businesses are those that have a very high risk of money laundering, and therefore are heavily prosecuted by governments. No financial entity or acquiring bank in the world can prosecute illegal business, the card brands will automatically close the purchaser's license and denounce it to the competent authorities.

List of high risk businesses 

The businesses considered by financial institutions as high risk are the following:

Tarot, application and cancellation of credits, dating websites and escort services, software sales, payment methods, financial services, Forex currency exchange, insurance contracting, erotic content, erotic content videos , sports betting, bingo, casino and gaming in general, legal services, loans between individuals, marriage services, multi-level marketing, payment protection insurance, social gaming networks, purchase and sale of shares, computer support, telemarketing, investments, virtual currencies (Bitcoin, PeerCoin, Ripple, Dogecoin, Litecoin, Ethereum), satellite channels, scholarship application, sex shops, plane tickets sale and travel agencies, sale of first-signature clothing, sale of tobacco and cigars, electronics stores (mobile and computers), product auctions, pharmacy (license required) and nutritional, e-Cigar, growshops, clubs, weight loss supplements, sales on social networks.

As you can see in the list of high-risk businesses, all businesses are legal, but there are some businesses that are in limbo due to lack of regulations. TPVVirtual offers its services to high risk and low risk businesses. If you want to receive more information, please contact us. 



Make a question or comment

Recent posts

PSD2

What international payment methods are the most used on the Internet?

What is a payment gateway? How does it work?

What is a traditional virtual POS for Web sites?

What is a POS? Types of POS.

Difference between credit cards and debit cards.

Fake credit cards: learn the ways they can be used.

Online credit cards: easy and fast solutions.

PAYMENT METHODS

Payment gateway website

MOTO payment

Recurring payment

Bank accounts