High-risk merchant account for digital goods and in-game item sellers with a Georgian company

Xavion secures card processing for Georgian digital goods sellers by building a file that meets the specific requirements of high-risk acquirers. Our process begins with a detailed review of your business. We analyse your product type (e.g., in-game items, digital keys), your supplier agreements, and at least six months of processing history, focusing on chargeback and refund ratios.

Next, we build your underwriting submission. This includes a full KYB (Know Your Business) pack on the Georgian LLC and its ultimate beneficial owners (UBOs), a review of your website for compliance with card scheme rules, and an assessment of your anti-fraud tools. For sellers of in-game items or digital keys, demonstrating clear permission from publishers or official distributors is critical. We ensure this is clearly documented.

Finally, we identify and introduce you to acquirers, typically EEA-licensed institutions, that are equipped to underwrite Georgian entities in the digital goods space. We manage the application and underwriting Q&A process, ensuring your business model and risk mitigations are clearly presented. Post-approval, we assist in setting up settlement accounts and configuring settlement and reserve arrangements.

Underwriters for high-risk accounts focus on several key areas for digital goods sellers. First and foremost is processing history. They will require a minimum of six months of statements from previous acquirers to verify your turnover, chargeback rates (ideally below 0.7%), and refund patterns. Spikes in chargebacks or refunds are a major red flag.

Second, they scrutinise your supply chain and product legitimacy. For resellers of in-game items or software keys, this means providing copies of publisher or distributor agreements. Underwriters must be confident that you are not dealing in grey-market or stolen goods, which is a primary source of disputes in this sector. They will not approve businesses without this documentation.

Third is compliance. Your website, terms of service, and refund policy will be checked against card scheme regulations. The checkout process must be secure, and your company details must be clearly displayed. Finally, underwriters conduct thorough KYC and KYB checks on the Georgian entity's directors and UBOs to ensure transparency and compliance with anti-money laundering regulations.

Using a Georgian LLC for a gaming goods business presents specific advantages and requirements. Georgia's corporate registry is efficient, allowing for company formation within a couple of days. The National Bank of Georgia regulates financial services, including virtual asset service providers (VASPs), showing an understanding of digital business models. This makes it a credible jurisdiction for acquirers to underwrite.

However, the entity's substance is important. While easy to set up, a Georgian LLC with no local presence can be a concern for compliance teams. Having a local director or demonstrating regular management presence in Georgia strengthens the file. For banking, while local banks have historically been welcoming to foreign founders, scrutiny is increasing, especially for crypto-related revenue streams. Acquirers will expect clear segregation of funds and transparent accounting.

From a documentation perspective, your file must include a fresh extract from the National Agency of Public Registry, the company charter, and proof of a local address. All documents not in English will require certified translations. Compared to a jurisdiction like Estonia, Georgia offers a simpler tax structure but requires careful management of banking relationships.

Merchant accounts for digital goods are often declined or closed due to risks inherent in the business model. The primary driver is chargebacks. Instant, irreversible delivery of intangible items makes the industry a target for fraud, including the use of stolen credit cards and account takeovers. Acquirers see this as a direct financial risk. If your chargeback ratio on past processing exceeds 1%, approval is unlikely.

A second common reason for decline is a lack of verifiable supplier relationships. Acquirers are wary of resellers of unauthorised or grey-market digital keys and in-game items, which can lead to disputes and brand damage for the card schemes. A file that lacks clear, written permission from the original publisher or a licensed distributor will be rejected.

Finally, weak compliance or KYB can terminate an application. This includes unclear UBO structures, a history of dissolved or struck-off companies, or a website with non-compliant terms and conditions. Our process prevents these issues by ensuring every element of your business is documented and presented according to the specific standards of high-risk underwriters, demonstrating that you operate a legitimate, compliant business with robust fraud controls.

For a Georgian company selling digital goods, the typical timeline from submitting a complete underwriting file to a live merchant account is between two and six weeks. This period allows the acquirer's underwriting and compliance teams to conduct their due diligence on your business, processing history, and KYB documentation. The process can be faster if your file is well-prepared and all necessary documents, such as publisher agreements and processing statements, are provided upfront.

Once approved, the focus shifts to maintaining a healthy account. Staying live requires active management of your transaction profile. This involves monitoring your chargeback and fraud ratios closely to keep them within the acquirer's accepted thresholds. Many acquirers will implement a rolling reserve, typically holding 10% of your turnover for 180 days, to cover potential future chargebacks. They may also set monthly processing volume limits, which can be increased over time as you build a record of stable, low-risk processing.

Consistent communication with your provider is key. If you plan to change your product mix or expand into new markets, informing the acquirer in advance can prevent your account from being flagged for unusual activity. We help you establish this relationship and provide ongoing support to ensure your payment processing remains secure and uninterrupted.