High-risk merchant account and instant approval: what’s the catch?

We’re here to discuss the high-risk merchant account instant approval catches and help you understand and solve this issue in the best possible way if you have stumbled upon one.

A merchant account is something each company that sells any kind of product must acquire.

Without a merchant account, the company can’t receive payments, and the customers would go and shop for products from other companies. Therefore, these accounts are vital for everyone involved in the sales industry.

Let’s see why it can sometimes be difficult to obtain a merchant account and go around that issue.   

What’s the highest risk in the product selling industry?

As an example, let’s look at the process of selling kratom leaves.

This is an excellent example because kratom is a complex product to sell.

The kratom leaves are used as a herbal medicine in Southeast Asia and have become popular among people worldwide due to their beneficial effects.

Different kratom strains evoke other results in their users, most commonly healing and wellness-improving ones.

Some use it as a powder, some consume it in capsules or brew tea from it but whichever the case, severe and strict regulations follow the distribution of kratom.

Even though most users report the positive side-effects of this herbal product, there is still some controversy around it.

Namely, there are not enough clinical studies of kratom strains that can prove with great certainty that this plant is nothing other than beneficial.

Consequently, laws and regulations around it are in a limbo of constant change.

These changes in laws and regulations prove that there is some risk connected to the same plant.

That’s why those who want to cultivate and sell it usually struggle to acquire a kratom merchant account through a payment processor.

All this can apply to any high-risk product.

Now, let’s delve deeper into what a merchant account is.

What’s a merchant account?

As mentioned, a merchant account is something each company in the product selling industry has to have.

This account is used to carry out payments, process high-risk credit cards, and safely collect all the payments from customers before the money is stored in your primary account.

These merchant accounts are specifically for businesses that carry out most of their sales online, where they also receive all the payments for what they sell (in the above case, kratom strains).

As most businesses sell their products online, a merchant account is inevitable.

A merchant account in the sales business ensures that high-risk payments will be the top priority for processing.

No company would be able to receive digital payments without such an account and would lose customers.

Therefore, each owner of a business must acquire a merchant account.

Since some products are still new to many parts of the world, and there is insufficient evidence to support their push to the market, many banks and payment processors refuse to work with certain companies. 

What’s the catch with high-risk merchant accounts?

MERCHANT ACCOUNT: Companies selling products require a merchant account

If you’re wondering what’s the catch with merchant accounts and why many companies have trouble obtaining one, we’ve got just the answers for you.

Namely, some payment processors usually ban your right to a merchant account if you are in a high-risk industry.

Other payment processors sometimes even try to shut you down and ensure that you don’t get any payment processor when they realize you want to sell certain products online.

You may now be wondering, what’s the best payment processor? Here’s the deal.

PayPal, for example, is strict when certain companies want to use this platform for payment processes.

They have a history of putting restrictions and limits on all those selling certain products online.

In some cases, the user’s money could get locked for up to 180 days.

On the other hand, Stipe is a bit more flexible but still has restrictions for users who have accounts related to specific industries.

Why is this so? You may now be asking yourself, what’s the catch, and can this issue be solved?

In a nutshell, some products fall under the category of high-risk payment processing because there’s still some controversy about the lack of medical research on the product itself.

Banks and payment processors see these products as risky and expect scams to be related to them.

Plus, some industries are still new and young, which means that new rules and regulations are yet to come.

For the time being, all you can do is try to find the best payment processor on the market until the controversy around your product nulls. 


Yes, there are certain high-risk products with insufficient research, and many payment processors are skeptical about processing payments related to these industries.

Hopefully, it will change in time, but for now, thorough research on the best payment processor is all companies from these high-risk industries can do.

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