Banks are hesitant to give merchant credit card accounts to certain businesses that they deem to be particularly high credit card risks. High-risk businesses are usually those that have a history of fraudulent activities, a history of high chargeback rates, or a high failure rate. Although there is no standard "list," here are a few that are routinely considered to be high-risk businesses (the * denotes businesses that will have an especially difficult time getting card privileges):

• adult bookstores*
• airlines*
• automobile rentals
• bail bondsmen*
• bars without a restaurant
• businesses without a storefront
• check cashing businesses*
• collection agencies*
• credit unions*
• dating/escort services*
• gambling facilities*
• health club memberships*
• infomercials
• insurance sales
• limousine services
• massage parlors*
• merchants who have declared bankruptcy within the past 10 years
• pawn shops*
• real estate-related businesses
• self-improvement courses
• sexually explicit telephone businesses*
• tour companies
• thrift travel agencies*

If you fall into one of the categories above, it does not mean that you cannot get a credit card account. It means simply that you're going to have more trouble (in some cases, a lot more trouble) getting an account than most other businesses.

What to do? If you're on the list, you may have to shop around more than other businesses, and you may not have as many choices as they do. Also, you're probably going to pay higher fees. The credit card transaction fees range generally from 2.5 percent of sales to 5.5 percent of credit sales. If you're on the list, you're probably going to pay nearer the upper end of the scale or, in some case, above the upper limit.

If your bank won't let you open up a merchant account, consider using an Independent Service Organization. You can contract with the ISO to open a merchant account, and the ISO will contract with the bank. The ISO, in effect, bears the risk of doing business with you. Of course, the ISO will charge you for its services. Please be careful here. Although there are more than 1,400 ISOs in the U.S., they are not regulated. Make sure that you understand all the extra charges before you enter into an agreement. Sometimes you can be grossly overcharged for the equipment that the ISO provides you and for other hidden charges.