Navigating the world of payment processing sometimes involves rules for certain types of businesses. If your business operates in an industry that Visa and Mastercard have identified as high risk, they may need additional fees from you.
This article is here to clearly explain the card brand High-Risk Merchant Program and what it might mean for your business.
In this article
What is the High-Risk Merchant Program?
Visa and Mastercard created the High-Risk Merchant Program because certain industries statistically face a higher chance of issues like payment disputes or fraud. This is especially the case when payments are accepted without the customer's card being physically present.
| Think of when transactions keyed in manually online or over the phone, rather than tapped or inserted into a reader. |
To help manage this increased risk, the card brands require extra monitoring and specific fees. It's important to know that this is a standard requirement across the payments industry, implemented by Visa and Mastercard themselves, not something unique to Helcim.
Who are considered high-risk merchants?
The High-Risk Merchant program applies to merchants operating under specific Merchant Category Codes (MCCs) who process transactions in a card-not-present environment (for instance, manually keyed transactions via the Virtual Terminal).
If your business operates in one of the following areas, these High-Risk Program rules and fees might apply:
Direct marketing services (including inbound/outbound telemarketing and subscription services)
Dating services
Gambling or betting services
Pharmacies and drug stores
Quasi-cash or cryptocurrency services
Computer network or information services (like cyberlockers or file-sharing)
Digital goods - games (especially involving skilled game wagering)
Securities dealers or financial trading platforms
Tobacco or e-cigarette sales
What additional fees are required?
Acquiring Fee
If you identify with one of the high-risk industries listed above and are accepting card-not-present transactions, you may be subject to an annual Acquiring Fee.
Fee amount
Canadian Merchants: $100.00 CAD annually
U.S. Merchants: $25.00 USD annually
Billing
This fee is automatically debited from your merchant account. You'll be charged initially in the month you sign up (if applicable) and then annually every April.
Notification
You’ll receive an email notification prior to annual billing.
Registration Fee
Some high-risk industries also require formal registration with the card brands, which involves a separate Registration Fee.
Currently, this applies to:
5122/5912 (Pharmacies/Drug Stores)
5993 (Tobacco Sales)
Fee amount
This fee is charged per card brand annually:
VISA: $950.00 annually
Mastercard: $500.00 annually
Billing
If you own a pharmacy or sell tobacco, you’ll be charged an initial fee in the year you register your MCC, and then annually every September.
| Example: if you registered and paid in Jan 2025, the next annual bill won’t come until Sept 2026. |
Registration thresholds
Registration (and the associated fee) is typically required only if your keyed transaction volume exceeds certain limits set by the card brands:
Pharmacies: Can key up to 25% (Visa) or 50% (MasterCard) of total Visa/MC volume before registration is usually needed.
Tobacco/Vape Sales: Can key up to 0.01% (Visa) and 50% (MasterCard) before registration is usually needed.
Fee waiver for pharmacies (VISA)
Visa may waive their $950 registration fee if your pharmacy provides proof of specific certifications (e.g. NABP’s HMA/DDA, or LegitScript’s Healthcare Certification).
| Note: Mastercard does not offer a similar waiver. |
What if I don’t pay high-risk merchant fees?
Visa and Mastercard set up this program for certain business types. If it applies to you, taking the required steps helps ensure you can continue accepting their cards without interruption.
If your business needs to participate and the required steps aren't followed (like completing registration or paying the fees), it could affect your ability to accept Visa and Mastercard payments.
Potential outcomes could include:
A temporary hold on accepting Visa and Mastercard payments while things get sorted out.
A permanent stop on accepting Visa and Mastercard payments.
It could potentially lead to closing your payment processing account.
It's also helpful for you to know that these card brand rules are industry-wide. This means switching payment processors won't change these requirements for your business, and any registrations needed with Visa or Mastercard usually can't be moved from one processor to another.
Conclusions
Here are the main takeaways from this article:
The High-Risk Merchant program is a Visa/Mastercard requirement for specific industries processing keyed transactions.
An annual Acquiring Fee applies to all merchants identified in the program.
A separate, more substantial annual Registration Fee (per brand) applies only to a few specific industries (like Pharmacies and Tobacco Sales), often triggered by keyed volume limits.
These requirements are standard across payment processors.
Next steps
Unsure about your MCC? If you're uncertain whether your business falls under one of these high-risk MCCs or if the program applies to you, please contact Helcim support for clarification.
FAQs
How do I know if this program applies to my business?
It primarily depends on your Merchant Category Code (MCC) assigned during signup and whether you process card-not-present (keyed) transactions.
If your business falls into one of the listed MCCs, the Acquiring Fee likely applies. Registration fees only apply to specific MCCs like pharmacies and tobacco sales, often based on volume thresholds.
Do I have to pay both the Acquiring Fee and the Registration Fee?
Possibly. All merchants in the program pay the Acquiring Fee. Only those in the specific MCCs requiring registration (currently Pharmacies/Tobacco) pay the Registration Fee (per brand), usually once certain keyed volume limits are met.
Why do Visa and Mastercard have this program?
The card brands implement these programs to manage the higher potential risk of fraud and chargebacks associated with certain industries, especially when cards aren't physically present for the transaction.
Can I avoid these fees by switching payment processors?
No. This is an industry-wide program mandated by Visa and Mastercard. The requirements will follow your business regardless of your payment processor.