High-risk merchants such as telemarketers, Internet/e-commerce businesses, merchants in the travel and cruise industries, businesses that conduct Internet auctions, and businesses offering membership clubs may face difficulty opening a merchant account.

Just because you have a high-risk business it does not necessitate the fact that you cannot open any merchant account, you would be required to open a high-risk account. The banks and independent organizations that provide merchant account services will evaluate your case on the basis of certain information such as how long you've been in business, your credit history, and any previous merchant accounts you've held.

In such a scenario, the length of time that your business has been operational would really make the difference. If your business has been operational for long time, that would act as an assurance to the account provider. If you own a business for a long time the provider is aware that you do understand the matrix of running a business and the high risk involved.

The second aspect that the provider would view is your credit report. This is to confirm your capability to repay loans and disclose any information on bad credit such as bankruptcies or liens. The better you credit score better your chances to open the high-risk merchant account.

If you already have another merchant account or if you had previously owned a merchant account, then the way you managed your account would reflect in a positive or negative way on your current application. If you or the provider terminated a merchant account it will show up on the Member Alert to Control High-Risk Merchants file.

The providers would also check on information such as default payments and charge backs on your previous merchant account. If there are too many of these then it could create a negative impact on opening a future account.