A rise in environmental awareness has led to the growth of eco-friendly businesses. Many companies proclaim eco-friendly practices. However, there are a few “green” businesses where sustainability is the primary focus.

These green industries include environmental-friendly architecture and energy.

The shift to a more sustainable future has opened up doors for green industries. For these businesses to survive, they must understand their high risk level and how that affects their success.

What are Eco-Friendly Companies?

Eco-friendly companies revolve around sustainability. Other industries can also be environmentally-friendly. The difference between eco-friendly companies and others is a product or service that makes sustainability possible for consumers.

  • Waste Management (Compost, Recycling, etc.)
  • Renewable/Sustainable Energy
  • Energy Auditing
  • Environmental Technology
  • Sustainable Fashion
  • Water Resource Management
  • Environmental Law
  • Sustainable Cleaning
  • Eco Food Services
  • Green Vehicles
  • Ecotourism
  • Eco Home Products and Toys
  • Environmental Apps

A slew of eco-friendly startups has emerged within the past few years. New businesses are the most vulnerable to risk and may have trouble starting off without help from banks.

Are Eco-Friendly Companies High Risk?

Payment processors and financial institutions seek to provide for stable businesses. High and low risk are labels describing how financially stable a company is.

These risk levels are largely determined by the likelihood of chargeback occurrence. Chargebacks are the result of unresolved or lost disputes from customers. They can also come from fraud, a prevalent problem in eCommerce.

Companies that are susceptible to fraud, new, online, or selling unconventional products are likely to have more chargebacks than other businesses or industries.

Multiple aspects of eco-friendly companies increase the chance of chargebacks. Therefore, most traditional banks would label eco-friendly businesses as high risk.

Why are Eco-Friendly Businesses High Risk?

An Unfamiliar Initiative 

Environmental awareness emerges while many question whether sustainability is necessary. This attracts certain demographics while leaving out others. Unlike fashion and furniture, eco-friendly businesses have a hard time reaching outside of their audience.


It’s easy to type up claims and paste them onto products. Some consumers are jaded by “greenwashing” companies. Businesses have misused sustainability marketing and leave people wondering which merchants are genuine.

Additionally, eco-friendly products and services can be unlike what consumers are used to. An example is vegan meat that is meant to taste and look like real meat. Many are not willing to try vegan meats and may not understand how purchasing these foods can help the environment.

Some eco-friendly products and services are much like nutraceuticals. Companies make statements about how their product can work in favor of users. Customers often dispute charges against merchants when they don’t have the promised experience.


Start-ups are inherently high risk. The lack of merchant success history makes it less likely for new businesses to obtain merchant accounts and payment processing.

A large number of eco-friendly companies are start-ups, as entrepreneurs follow the budding sustainability movement. As virtuous as they are, they can have a difficult time launching off as they search for quality merchant services.

Need Help With Your Eco-Friendly Business?

Your Content Goes HereWhether you’re a new business owner or have been in the game for a while, Revitpay has merchant services ready to cater to your needs. Lower your chargeback rate and your risk with our payment processing, chargeback management, and more.