5 Tips for Opening a Merchant Account for High-Risk Businesses

If you run an adult website or an online casino, you already know the truth: payments are often harder than traffic, content, or even compliance. Banks and processors don’t just look at your revenue—they look at chargeback risk, regulatory exposure, card network rules, reputation, and how “clean” your operational setup is.

The good news: high-risk merchant accounts are absolutely doable—if you approach them the right way. Below are five practical tips that materially increase approval odds and help you keep the account stable once it’s live.

1) Build a “compliance-first” storefront (before you apply for a merchant account)

Most high-risk declines happen because the website (and customer journey) looks non-compliant or unclear. For adult and casino, processors want to see that your site is transparent, reduces disputes, and respects age / jurisdiction rules.

Do this before submitting any application:

• Clear Terms & Conditions, Privacy Policy, Refund Policy (easy to find, not buried)

• Prominent support contact (email + ticket system; phone helps)

• Billing descriptor disclosure (“Your statement will show…”)

• Age gate & age-related language (adult: strict 18+/21+ approach; consistent across pages)

• Gambling disclaimers + responsible gaming links (casino)

• Jurisdiction clarity: where you accept customers, where you do not, and how you enforce it (geo-blocking, KYC flow, etc.)

Why it matters: processors underwrite future chargebacks. A site that looks like it will create “I didn’t know” disputes is a red flag.

2) Prepare your underwriting package like you’re raising capital

High-risk underwriting is not “fill the form and pray.” It’s closer to a due diligence process. The faster you provide clean documentation, the faster you get approved—and the better terms you can negotiate.

Common documents you should have ready:

• Corporate docs (formation, ownership, operating agreement / registry extract)

• Proof of address and IDs for beneficial owners

• Processing history (3–6+ months statements if you have them)

• Bank statements (to show liquidity and operational stability)

• A simple but clear business summary: what you sell, where customers are, average ticket, refund rules, fulfillment (digital delivery), risk controls

Pro tip: include a short “Risk & Compliance Overview” (one page). Underwriters love seeing:

• Chargeback prevention tools

• KYC/age verification plan (where relevant)

• Geo restrictions & enforcement

• Customer support process and response times

3) Choose the right processing structure: don’t force a “low-risk” solution for your merchant account

Adult and online casino are often declined by mainstream aggregators and “easy” payment platforms. Even if you get accepted somewhere, you may face sudden freezes, rolling reserves, or abrupt termination if the platform decides your category violates their policy.

For adult websites:

• Expect higher scrutiny on content types, marketing practices, and subscription billing.

• If you run subscriptions, have clear cancellation flows and email receipts.

For online casino:

• Your structure depends heavily on licensing, jurisdictions, and your business model (operator vs affiliate vs software vs “social casino”).

• Underwriters will look for clear legal basis for offering services in target markets.

Bottom line: match your processor to your category from day one. “Sneaking in” as something else is the fastest way to get shut down and blacklisted by risk teams.

4) Engineer your chargeback and fraud controls (and show them) for your merchant account

Processors price and approve risk based on expected fraud + disputes. If you can demonstrate strong controls, you’re not just more likely to get approved—you can often negotiate better reserve terms.

Baseline controls that help immediately:

• 3DS / step-up authentication (where available)

• AVS + CVV enforcement (with smart exemptions for conversion)

• Velocity limits (per card / per IP / per device)

• Device fingerprinting + proxy/VPN detection

• Clear digital delivery logs (timestamps, IP logs, user account activity)

• Proactive customer support + rapid refunds when appropriate

Adult-specific note: subscription disputes are common (“I forgot,” “I didn’t authorize,” “discreet billing confusion”). Make cancellation and billing descriptor disclosure painfully obvious.

Casino-specific note: you’ll need robust KYC/AML expectations in many contexts. Even when not legally required, processors may expect a solid player verification approach.

5) Negotiate the right terms: reserve, caps, and settlement speed

High-risk merchant accounts aren’t just “approved or not.” The real game is the commercial terms you accept—because they determine your cash flow.

Key terms to watch:

• Rolling reserve (e.g., 5–15% held for 90–180 days)

• Chargeback thresholds and monitoring programs

• Monthly volume caps (often start low and scale with good performance)

• Settlement schedule (T+2, weekly, or longer)

• Early termination / liquidated damages (avoid nasty surprises)

• Match list / risk monitoring language (what triggers account review)

How to get better terms:

• Bring processing history (even from another provider)

• Keep average ticket size realistic (don’t inflate projections)

• Demonstrate low dispute rates and strong controls

• Ask for a clear path to step down reserves after performance milestones

Final checklist before you apply for a high-risk merchant account

Use this quick pre-flight list to improve approval odds:

• ✅ Website policies live + visible (refund, terms, privacy, descriptor, contact)

• ✅ Clean business summary (model, geo, average ticket, refund timelines)

• ✅ Corporate + KYC docs prepared for beneficial owners

• ✅ Processing history and bank statements ready (if available)

• ✅ Fraud/chargeback controls documented and implemented

• ✅ Realistic volume projections and a plan to scale responsibly

Ready to open a stable merchant account for your adult website or online casino—without painful delays, freezes, or surprise shutdowns? Andrea Ricci, CPA helps high-risk online businesses structure their operations and documentation so processors and banks can underwrite them with confidence. From entity setup and cross-border tax considerations to compliance-ready policies and payment-flow planning, Andrea provides practical, risk-aware guidance built for international entrepreneurs. Book a consultation with Andrea Ricci, CPA to review your business model, target markets, and approval strategy—and get a clear, step-by-step plan to move forward.