Did you know that about two thirds of small firms make it past the two-year mark and just about 44% make it to four years?  High-risk merchants are considered high risk due to a variety of factors however, the most commonly known ones are that the business operates within a high risk industry and the risk of financial failure is great. 

To be fair, there are many businesses that aren’t aware that they’re a risk until they’re searching for a credit card merchant account or processor. That’s a problem because they’ll have to pay higher rates and fees for payment processing service.

So you’re probably wondering which businesses are the most risky. Here is a list of the top 10:

1. Communications Equipment Manufacturing in the US: The Communications Equipment Manufacturing Industry produces radio and TV broadcasting equipment, satellites, and GPS equipment, along with lots of other gadgets. The industry is diverse and this means that certain segments will perform better than others. However, since there is a stiff internal and import competition and instability due to the COVID-19 pandemic, industry revenue is thus set to decline. 
2. Credit repair services: The Credit Repair Services industry performs contrary to counteract the fluctuations in an economic cycle. Many consumers that are in debt have chosen not to seek these services and opted to rather declare bankruptcy. As a result, the industry revenue has declined. 
3. Printing in the US: The printing industry in the US is in the midst of a sharp decline due to products becoming digital. Both of the industry’s largest markets: advertising and publishing, have accelerated their online moves, thus reducing the need for printing. Additionally, corporate profit has declined due to the widespread shutdowns as a result of COVID-19. 
4. VoIP in the US: The VoIP industry has battled over the past few years even though there is a growing demand for the service providers by the industry operators. Voice over internet protocol technology converts voice communications into digital data transmitted using high speed connection. The industry has declined due to the rise of vide chat services like FaceTime and Facebook Messenger. 
5. Company Research Services: Company Research Services industry is composed of businesses that do research on the management teams, strategic developments and the financial operations of companies in both the public and private sector. Industry services are mainly catered towards financial institutions like asset managers, bankers and equity traders. The uncertainty in the financial sector has played a role in the volatility of this market. 
6. Bare Printed Circuit Board Manufacturing: The Bare Printing circuit manufacturing board that comprises of companies that manufacture bare printed circuit boards. They are no longer competitive due to the strong US dollar and a declining US manufacturing base. The effects of COVID have impacted on the US manufacturing base thus it has become a high risk industry. 
7. Municipal Building Construction in the US: Municipal Building Construction consists of various non-commercial markets like healthcare and educational. Government funding accounts for almost all of the educational and public building construction. 
8. Cigarette & Tobacco Products Wholesaling: The cigarette and tobacco industry has experienced many challenges in the past few years especially pertaining to regulations and operational challenges. In recent years, the growing popularity of e-cigarettes has caused major players to invest in this product, thus fuelling the growth in this industry. However, COVID-19 has caused a reversal in these numbers because of the stay-at-home measures that were implemented. The e-cigarette industry comes with a large amount of chargebacks thus it is financially risky. 
9. Pharmaceutical industry: The selling of prescription medicines requires a high risk merchant account. This is because there are many chargebacks and people also use the pharmacy’s website to pay. Some people may even pay using crypto currencies and e-checks. 
10. Online Gambling: online gambling is becoming increasingly popular and electronic payments are the only way to process payments from your customers. Even with online gambling there are lots of chargebacks as people often deal with regret from spending so much and making little to no returns. This is when they often request chargebacks, thus making online gambling high-risk. 

There are many other high-risk industries that may be volatile but offer good returns if you are willing to take a chance. Although finding a merchant may seem like a daunting process, there are many merchants that offer good benefits and are willing to offer secure gateway and some even guarantee lower chargeback numbers.