A business is typically classified as high risk if it operates in an industry with elevated chargeback rates, regulatory scrutiny, or has a significant history of fraudulent activity. Examples include online gambling or adult services.

High risk merchants can reduce chargebacks by implementing strong fraud prevention measures, providing clear customer service options, and maintaining transparent refund policies to avoid misunderstandings.

Yes, many payment processors specialize in high risk merchant services, offering tailored solutions to accommodate the unique needs of businesses considered high risk.

Fees vary by provider but can include setup fees, monthly maintenance fees, and higher transaction fees compared to low-risk merchant accounts. It's essential to review terms before signing up.