Approximately half of all small businesses fail within the first five years, and those that do not have the ability to accept debit and credit cards are likeliest to struggle the most. When opening a business it could be important to know what is considered a high-risk merchant account. Every bank has its own criteria, but here are a few that will levy an extra cost on each transaction for businesses that are considered risky when it comes to collecting money from their clients.

The rich are different it is said, so opening a business that sells luxury goods can be considered high risk. Exotic leather items and furs might bring in an opulent amount of profit, but the high price tag on each sale is considered by many banks to be risky. Fearful of not collecting their funds, most of them will put this type of business straight into the high-risk category. So how do you determine how to handle merchant accounts for high-risk businesses?

For those who believe the fur and leather business means only those businesses selling to the rich will find price discrimination, selling to the poor also has its own high cost. The majority of people who vape, smoke cigarettes or marijuana are considered to be less than savory by those staid bankers controlling the cash and credit flows of the world. They claim there is a higher rate of fraud in these selling categories, so the rate goes up.

It might seem unfair to only pick on those people who smoke, so anyone interested in purchasing porn, sex toys or even risqué lingerie is on the list. Not paying a credit card debt or using someone else’s debit card might be a good idea if someone does not want their significant other to find out, so perhaps that is why this has become a part of the risky business category.

Many consumers today are looking for the magic business that will get net them a high profit with little investment or work, and the businesses that sell to them have been put on the naughty list. Yes, these types of transactions are often considered less than above board, so the cost of doing business with the bank will likely be going up if it is not already there.

Investment opportunities are out there, and some companies specialize in helping people find them. It might sound like a great idea until it does not work out, and an investor could decline to pay for services. Investment consulting businesses are now a part of the group where risk is considered sufficient to charge more by those same staid bankers who started this type of investing years and years ago.

Many online businesses are considered less trustworthy than their brick and mortar counterparts, and they include online movie, music, and book download sites, fantasy sports, eBay and even SEO services. Yes, all these businesses are considered risky when it comes to collecting money from customers.

It can be difficult to navigate all the different services a business needs to survive in today’s markets, and even having an online presence can constitute a risk when it comes to obtaining a merchant account. It might pay to check around before opening an account to try getting labeled just a regular business working hard to make a profit.