What is a high-risk payment gateway?


Quick Answer

A high risk payment gateway is an intermediary that stands between a business' website and its banks. It ensures that businesses are protected against charges that are fraudulent while keeping chargebacks at a minimum. The business' customers don't come in contact with the gateway. Their information, including the credit card details get submitted thorough the gateway. From there, the information is sent to the high risk merchant account. All the sensitive data is encrypted, according to Merchantworthy.com.

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Full Answer

When customers decide to make a purchase and get to the checkout part of the shopping process, things should run smoothly, notes Unibul. A gateway facilitates the process of online payment by sending a secure order form to the merchant account of the business. Once the information reaches the account, the gateway waits for a response, and once it receives the information, it sends the information back to the site, according to PSBILL.

Gateways don't include other e-commerce features, like merchant accounts, shopping carts or Web hosting. Nevertheless, providers of gateway services might be able to offer such services, according to PSBILL.

To use a high risk payment gateway, the business needs a high risk merchant account, which is an account that processes high risk credit card information, according to Merchantworthy.com. Ideally, such accounts should be able to work with businesses operating in the both the United States and overseas.

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