Resource Center

Esquire Risk Levels

Low Risk Merchants - Risk Level I and Risk Level II

Risk Level I Merchants

Shall have each of the following characteristics:

1. Average ticket is less than $1,000.
2. Monthly volume less than $125,000.
3. Store front merchants with at least 70% card present sales, evidencing the presence of the Card used to affect the transaction.

Risk Level II Merchants

Who do not qualify as Risk Level I and are not considered High Risk or Moderate Risk, shall be designated as Risk Level II.

High Risk Merchants - Moderate and High Risk

Moderate Risk Merchants

Exhibit a slightly higher risk than Level I and Level II merchants for a variety of reasons.
The following merchant types will be considered Moderate Risk.

Moderate Risk Merchants

• Collections/Debt Repayment (7322)
• Computer Network/Inform. Systems (4816)
• Credit Repair (7277)
• Counseling/Coaching/Mentoring (Personal or Marital) (7277)
• Debt/Mortgage Counseling/Consolidation (7277)
• Debt Repayment (7322)
• Digital Goods - Applications (excluding games) (5817)
• Digital Goods - Games (5816)
• Digital Goods - Large Digital Goods Merchant (5818)
• Digital Goods Media - Books, Movies and Music (5815)
• Direct Marketing - Catalog Merchants (5964)
• Direct Marketing - Combined Catalog and Retail (5965)
• Direct Marketing - Door to Door Sales (5963)
• Direct Marketing - Insurance Services (5960)
• Direct Marketing - MOTO (5961)
• Direct Marketing - Not Elsewhere Classified (5969)
• Document Preparation (Business 7399) (Personal 7299)
• Employment Agencies (7361)
• Furniture, Home Furnishings (5712)
• Insurance Services, Direct Marketing (5960)
• Legal Services (8111)
• Massage Business, government licensed/registered or board certified only (7297)
• Motor Home Dealers (5592)
• Motor Home and Recreational Vehicles (7519)
• Non-Financial Institution - Foreign Currency, Money Orders, Travelers Checks (6051)
• Pawn Shops (5933)
• Recreational Vehicles and Motor Homes (7519)
• Search Engine Optimization (7372)
• Security Brokers/Dealers (excluding Forex trades, binary trades, etc.) (6211)
• Taxicabs/Limousines (4121)
• Technical Support (4816)
• Theatrical Producers (7922)
• Video Amusement Game Supplies (7993)
• Website Design/Hosting (7372)

High Risk Merchants

High Risk Merchants are defined as companies operating in high-risk industries/verticals. High Risk Merchants are reviewed on a case-by-case basis and will be considered for acceptance based upon several factors including their financial strength, the quality of goods and services provided and the amount of reserves they agree to maintain if applicable.

Esquire Bank and the Card Brands have identified specific types of merchants considered to be of a higher risk.

These high-risk merchant types may require additional underwriting due diligence, documentation and reserves as well as additional risk/compliance monitoring. Certain high risk merchant types require registration with the Card Brands which is performed by Esquire Bank.

High Risk Business Categories

• Bail Bonds and Bond Payments (9223)
• Bus Lines (4131)
• Casino/Gaming/Chips/Betting Activities (with or without monetary prizes) (requires management approval via a Pilot Program) (5816, 7994, 7800, 7801, 7802) (7995 card present only)
• CBD Merchant (Cannabinoid) (5499)
• Cigarette and Cigar (Vape/e-Cig/Cigarette/Cigar /Tobacco/Nicotine Merchants) (5993)
• Consumer and Credit Reporting Agencies (7321)
• Continuity/Subscription Merchant/Neg Option (5968)
• Dating/Matchmaking Services (7273) (requires Visa registration)
• Direct Marketing - High Risk Negative Option Billing/Continuity/Free trial (5968)
• Drugs, Drug Proprieties, Druggist Sundries - (5122)
• e-Cigarettes (Vape/e-Cig/Cigarette/Cigar/Tobacco/ Nicotine Merchants) (5993)
• Escort/Companion Services (7273)
• Fantasy Sports Merchants (Gambling Related (5816) Digital Good (Visa)/7994 Video Games (Mastercard))
• Firearms (5941)
• Gambling Related - Fantasy Sports (requires management approval via a Pilot Program) (5816 Digital Good Visa)/7994 Video Games (Mastercard)
• Gambling - (Government owned lotteries, Government licensed casinos - online state regulated casinos, (7801)
• Government licensed casinos - online state regulated sport betting, Government licensed horse/dog racing) (requires management approval via a Pilot Program (7802)
• Match Making (7273) (requires Visa registration)
• Membership Clubs (7997)
• Membership Organizations
• Negative Option Response Marketing Sales Methods (i.e., free/low-cost trial offers) (5968)
• Non-Financial Institution Stored Value Purchase/Load/Prepaid Processing (6540) (Digital Wallets prohibited)
• Nutraceuticals / Nutritional Supplements / Herbals / Topicals / Pseudo-Pharmaceuticals (MOTO & eCommerce)
• Online Dating Sites (7273)
• Passenger Railways (4112)
• Online Pharmaceuticals (ecommerce and MOTO) (5912, 5122)
• Railways - Passenger (4112)
• Timeshare Advertising (7012) (Timeshare sale MCC 5962 - prohibited unless approved by Bank Management)
• Tobacco Sales (Vape / e-Cig / Cigarette / Cigar / Tobacco / Nicotine Merchants) (5993)
• Vape/e-Cig/Cigarette/Cigar/Tobacco/Nicotine Merch (5993)
• Subscription/Continuity/Negative Option (5968)

Additional Risk and Compliance Pricing — Risk/Compliance BPS

Certain merchants and merchant types require additional pricing known as “Risk/Compliance BPS”. Please note that not all Risk/Compliance BPS merchant types are listed below. Additionally, not all merchant types listed below are applicable for acceptance unless otherwise approved by management

Esquire Risk/Compliance BPS Tier Structure

Note: Other merchant types may require additional risk/compliance BPS depending on business model.