Payment Gateway Without Chargeback Option for High Risk Merchants

Payment Gateway Without Chargeback Option for High Risk Merchants

With all this talk about chargebacks, fraud, and risk, some merchants may be demotivated about opening a merchant account, especially a high risk merchant account. One might wonder, is there such a thing as a payment gateway without chargeback options, specifically for high risk merchant accounts? The answer is yes, and we will explain how in the blog below.

What is a Payment Gateway Without Chargeback Options?

A payment gateway without chargeback options is a simple bank-to-bank transfer, which has been proven as a highly effective payment option for high risk merchant accounts. All merchants must do is add a secure bank transfer option on their website checkout and avoid the risk of credit or debit card fraud. The online customer does not need to submit their personal or financial information on the checkout form, removing the risk of chargeback for the high risk merchant.

How does a Payment Gateway Without Chargeback Options Work?

Payment Gateway Without Chargeback Options Function

Now that we have grasped the concept of a payment gateway without a chargeback option let us consider how it functions. The payment option is seen as a simple cash transaction. Simply put, the online customer must approve a bank transfer, and the funds are transferred from their bank account to the merchant's account. 

The transaction happens using checking or saving account numbers, which require no additional personal information. A bank transfer is the only payment method that occurs in real-time, is secure, guarantees merchants the funds they request, and has no risk for chargebacks.

Let us look at the process step by step:

  1. Once an online customer chooses a product or a service, they are taken to the checkout page. Here they are given an option to pay with a bank transfer. 
  2. The customer then clicks on their bank from a list of integrated banking options that the merchant offers, and they are directly linked to the bank's login page. 
  3. Once logged into their bank account, the customer is presented with an invoice for the product or service. The customer then reviews the invoice and authorizes payment to the merchant from their bank account. 
  4. After the payment has been completed, the customer is shown the purchase receipt that they can print and view at any time. 
  5. The merchant receives a real-time authorization of the purchase and the payment. At this point, the customer will be able to receive the goods or services they purchased.
  6. In most cases, the customer's funds are transferred to the merchant within 24-48 hours. 

In this manner, purchasing goods or services do not require a customer to submit any personal information, register, or sign up for anything. They use their existing bank account. This secure online payment method has been surprisingly well-accepted amongst many customers and has been proven to increase customer trust and satisfaction. It is also helped many merchants gain profits.

Advantages of Payment Gateway Without Chargeback Options

If you have not thought of any by now, there are multiple advantages of a payment gateway without chargeback options. With the main one, of course, being:

No Chargebacks – This payment option is like any cash exchange, and there is no option of chargebacks.

Avoiding Reserves – There is no need for reserves since merchants get their money directly, which means that money is not tied up and available.

No Processing Volume – Without the risk of chargebacks, nothing stops merchants from processing as much as they like. Sales volumes are unlimited.

Faster Settlements – The merchant receives cash within 24-48 hours, with no waiting time.

New Payment Method – This is a dream come true for high risk merchants who no longer must jump through hoops to get payment processing approved.

Great High Risk Merchant Alternative – With no chargebacks and fraud, this is the perfect way for high risk merchant account owners to be protected.

Easy Application and Fast Approval – It is also simple to apply and get approved for an account with this type of payment processing option. The approval rate time has been known to be within a couple of days.

Security for Merchants – Real-time authorization and no chance of chargeback are a safety net for high risk merchants.

Privacy for Buyers – With no need to submit personal data and other information, this is the ideal payment option for many buyers as it guarantees privacy.

Which Business Types Benefit from This Option?

Payment Gateway Without Chargeback Options Benefits

The obvious answer to the question of which business types benefit from this payment option is every business. However, with the high risk industry suffering the most chargeback and fraud transactions, it is clear that the option is most rewarding for high risk merchants. High risk merchants have a hard time getting approval for their merchant accounts and face losing their account if there is a high rate of chargebacks.

Plus, high risk merchants benefit from this option because most of their customers prefer discretion.

These businesses include travel, furniture, health and beauty, digital and software products, online games and entertainment, the adult industry such as adult cam sites, accounting, financial institutions, pharmaceuticals, luxury items, and much more.

Note: Take a look at the new Mastercard rules made to prevent unlawful activities. This is especially important for high-risk industries such as adult.


One can see the benefits of a secure online payment method, such as a payment gateway without chargeback options. Perhaps the most benefit can be seen by high risk merchant account owners. With no chance of chargebacks, a secure payout option, and no need to take any personal information from customers, this payment option is becoming popular among the high risk merchants. Now you know why.