Cutpay Merchant Services LTD

Major merchant account providers such as World Pay, Elavon, Global Payments and the high street banks categories certain business sectors high-risk and generally refuse to provide merchant accounts to them.
Risk is assessed according to several criteria which include the credit risk of the business, its trading history and prospects, and the business sector in which it operates.
Majority of High Street Banks and other mainstream merchant account providers refuse to provide merchant accounts for high-risk businesses however luckily there are many high-risk merchant account providers who are keen to provide merchant accounts for businesses within high risk sectors.
Bad credit can refer to an individual who is a director or owner of the business and the business itself, or both. Credit records will show details of borrowing and repayments while highlighting any missed or late payments as well as any defaults, county court judgments (CCJs) or bankruptcies.


Risk Assessing

Merchant account providers use complex and rigorous processes in assessing merchant risk. These normally include factors specific to the individual enterprise as well as ones that relate to the business sector in which the enterprise operates. Read on for the main factors.

Company Longevity and Financial Stability

The track record of a business is an important consideration. New start-ups with limited capital are generally considered to be high-risk, particularly if the credit card processing volume is high compared to cash in the bank.

Credit Worthiness of Directors and Owners

If the business principals have a blemished credit record then the likelihood of the business being considered high-risk is increased; though this can be ameliorated if the principals can offer personal guarantees. Business model The way in which the business accepts payments is important in assessing risk. If the business takes payments in advance, for instance for a subscription, the risk is considered to be higher. When there is a long span of time between payment and delivery there is an increased chance the business could fail due to cash flow and stop trading. The further in advance the business collects payments, the higher the risk.

Additionally, payments taken Payment Gateways or over the phone (CHNP) are considered to be higher risk than those taken when the card holder is present (CHP) during the transaction.

Industry Sector

Merchant account providers consider certain business sectors as being high-risk because of the proportion of charge-backs, cancellations, and non-authorizations of payment that occur during the day-to-day running of the business. For instance, businesses that relate to travel are considered high risk, as factors such as the vagary of the weather, the inclination of travelers to change their travel plans, and the potential for cancelled flights result in a higher than average proportion of charge-backs.

Some examples of high risk sectors are:

Gambling 1


Tickets 1

Ticket brokers

Transactional Data 1

Payment Gateways auctions

Receipt 1

Payment Gateways pharmacies

Pharmacy 1

Health and nutritional supplement products Payment Gateways

Passport 1

Travel and timeshare

Computer 1


Egyptian Pyramid 1

Pyramid selling

Id Card 1

Monthly membership and subscription services

Borrow 1

Debt management and collection agencies

Age 1

Adult services


Online Dating


CBD & Cannabis Seeds

Additional Things To Consider

Naturally as the providers are accepting a high risk, it is only normal that they will mitigate this by offering accounts on less favorable terms. Shopping around for the best provider is essential. Contact Cutpay now to secure the most favorable terms in the industry.



For instance, they are likely to charge higher transaction fees, an extended settlement period to reduce the possibility of a charge back, a rolling reserve fund to act as a payment buffer, and high annual and monthly fees. It is common for high risk merchant account service providers to charge businesses a fee for applying for an account.


Attitude To Risk

Not all high-risk merchant account providers assess risk in the same way. While some might consider you to be very high risk and make it difficult for you to obtain a merchant account on reasonable terms, others might treat your business as being just a medium risk and be able to provide you with competitively priced merchant services.


Offshore High Risk Merchant Accounts

For merchants who cannot obtain a high risk merchant account in the UK, a fallback position is to set up an offshore merchant account. There are several offshore high-risk merchant account providers that you can research, but it is important to be aware of all the consequences of an offshore account.
The downsides of an offshore account can be considerable. It might only be possible if you incorporate your business in the relevant jurisdiction; it might be difficult and expensive to deal with any legal disputes with the supplier; rates could be significantly higher; and it could have a negative impact on your business reputation. However, there are upsides too; for instance, there could be tax advantages especially in some market sectors such as gaming.

How to Get a Merchant Account for High Risk Sector

Even if you have bad credit, this shouldn’t stop you getting a merchant account, though you should be prepared to put some work into the process and shop around for the high-risk merchant account services that are right for your business.

Future Is Bright

Ensure that you have a business plan that is both accurately honest and detailed, which should show where your business is heading in the future and how you will ensure that your cash flow balance can meet all your commitments. Providing a Personal Guarantee

What Are The Downsides To A High-Risk Merchant Account?

Compared to a standard merchant account, a high-risk merchant account will impose one or more terms that are less favorable than with a regular merchant account.

For Example:

Settings 1

Setup fees

Transaction 1

A minimum monthly number of transactions

Fees 1

Higher transaction fees


A longer settlement period

Rolling Reverse

A rolling reserve

Piggy Bank 1

An annual fee

Terms & Conditions

These terms and conditions, together with our privacy policy, constitute the entire agreement between you and us in relation to your use of our website, and supersede all previous agreements in respect of your use of this website.

Law and jurisdiction

These terms and conditions will be governed by and construed in accordance with English law, and any disputes relating to these terms and conditions will be subject to the exclusive jurisdiction of the courts of England and Wales.

What’s Next?

Are you looking to inquire or apply for a Merchant account? Then look no further,
The full name of our company is Cutpay Merchant Services LTD. We are registered in England under registration number: 09492222. You can contact us by email to info@cutpay.co.uk or call us on 0191 500 6575.