A merchant having a high risk of fraud and chargebacks is classified as a high-risk merchant. A high-risk merchant has to pay a considerably higher amount for the same services than low-risk merchants because banks have to use more resources and face higher risks when onboarding high-risk businesses. Difference between low risk and high-risk merchant accounts Low-risk accounts have a zero or low chargeback ratio, whereas high-risk accounts have bad credit history and excessive chargebacks. High-risk merchants require services that offer them secure, faster, reliable, and low-rate services to accurately manage their accounts and operations. A trustworthy low-rate merchant service provider can reduce the risk of frauds and chargebacks and ensure high trading volumes.