17 Mar
17Mar

If your business falls into the "high-risk" category, securing a merchant account in Singapore can be challenging. High-risk businesses often face more scrutiny from banks and payment processors due to factors like industry type, chargeback risks, and regulatory concerns. However, with the right approach, you can successfully obtain a high-risk merchant account in Singapore. This expert guide will walk you through the process, requirements, and best practices to increase your chances of approval.

What Is a High-Risk Merchant Account?

A high-risk merchant account is a payment processing solution designed for businesses that operate in industries with higher levels of financial risk. This may be due to frequent chargebacks, regulatory issues, or high transaction volumes.

Industries Considered High-Risk in Singapore

Businesses that commonly require high-risk merchant accounts include:

  • Forex and cryptocurrency trading
  • Online gaming and gambling
  • Adult entertainment
  • Subscription-based services
  • Telemarketing and digital marketing agencies
  • Travel and ticketing agencies
  • E-cigarettes and vape businesses
  • Nutraceutical and CBD products

If your business falls into one of these categories, traditional banks may be hesitant to approve your merchant account.

Steps to Get a High-Risk Merchant Account in Singapore

1. Find a High-Risk Merchant Account Provider

Traditional banks may not always approve high-risk businesses, so working with a high-risk payment processor is essential. Some well-known high-risk payment processors in Singapore include:

  • PayCly
  • PaynetSecure
  • iPayTotal
  • Durango Merchant Services

These providers specialize in working with high-risk businesses and offer tailored solutions.

2. Prepare the Required Documentation

High-risk merchant account providers require detailed documentation to assess your business. The necessary documents typically include:

  • Business registration documents (ACRA registration in Singapore)
  • Bank statements (last 3–6 months)
  • Processing history (if applicable)
  • ID proof of business owners
  • Compliance and licensing documents (if applicable)
  • A detailed business plan and website compliance review

Having all documents in order will speed up the approval process.

3. Ensure Website Compliance

Your website must meet the standards required by payment processors. This includes:

  • A clear refund and cancellation policy
  • Terms and conditions page
  • A secure SSL certificate
  • Proper business contact details
  • Privacy policy and data protection measures

A non-compliant website can result in application rejection.

4. Lower Your Chargeback Ratio

High chargebacks are one of the main reasons banks and payment processors decline high-risk businesses. To improve your chances:

  • Implement fraud prevention tools
  • Use chargeback alerts and prevention services
  • Offer clear customer support to resolve disputes before they escalate
  • Use 3D Secure authentication to reduce fraud risks

5. Be Prepared for Higher Fees

High-risk merchant accounts often come with higher processing fees, such as:

  • Transaction fees (3%–8%)
  • Rolling reserve (a percentage of funds held for chargeback protection)
  • Setup fees (one-time cost)

Understanding these costs upfront will help you plan your business finances better.

Alternative Payment Solutions

If you struggle to get a high-risk merchant account, consider these alternatives:

  • Offshore merchant accounts – Providers outside Singapore may have more flexible requirements.
  • Cryptocurrency payments – Some businesses accept crypto to bypass banking restrictions.
  • Third-party payment processors – Platforms like PayPal, Stripe, or Payoneer may allow high-risk transactions, though with limitations.

Final Thoughts

While getting a high-risk merchant account in Singapore can be difficult, the right approach and preparation can significantly improve your chances. Work with experienced high-risk payment processors, maintain compliance, and actively reduce chargeback risks to ensure long-term success.Are you looking for a reliable high-risk payment processor in Singapore? Let us know your business needs, and we’ll help you find the right solution!


Source By : How to Get a High-Risk Merchant Account in Singapore   : An Expert Guide

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