6 Best High-Risk Merchant Account Processors 2022

high risk credit card processing

Chargeback fees range from $20–$45, which may or may not be better—compared to Durango’s fees ($25–$30)—depending on your types of transactions. If you’re selling edibles, flowers, or CBD for pets, we’ve got the payment processing solutions you need to grow your business.

A merchant of a business deemed high risk seeking the ability to accept plastic as payment. They try to understand the level of risk the merchant will attract after approval. High-risk processors cannot violate the guidelines of card brands and governments. If the PSP wants you to sign a very long contract, try negotiating on a minor contract term. You may get better rates from another processor in six months. Sometimes few businesses may have very complex organizational structures or ownership.

How can high-risk businesses increase security in processing online payments?

Yes, your startup or new business can be approved by SoarPay for a merchant account. This article is for business owners who operate in a high-risk industry or have a high rate of chargebacks and are considering payment processing solutions.

Sometimes merchants think that a giant sales projection will impress the underwriter. A higher forecast, lower credit score, and inadequate financial standing will not help. There is a long list of products and services that credit card networks see as too risky for standard merchants. Many travel, telemarketing, gaming, tobacco, and pharmacy businesses will be prevented from working with a traditional credit card processor. All processors work on the assumption that high-risk clients will inevitably produce more chargebacks. They may require higher setup charges and impose larger monthly fees to offset this risk. The ongoing cost of processing will also be more than what merchants would otherwise pay.

Top high-risk payment processors

He explains that the process usually begins with a conversation. “We want to what is credit risk know more about their situation, what makes them high risk,” Roth says.

high risk credit card processing

At those rates, a standard business would pay $1.16 for a $50 charge (if the interchange rate were 2.15% plus 8 cents), while a high-risk merchant would pay $1.76. PaymentCloud specializes in difficult-to-place merchant accounts for credit card processing. These services aren’t fundamentally different from what a low-risk business would use. Durango supports eCommerce merchants through its proprietary Durango Pay payment gateway. This gateway includes all the standard payment and security features you’ll need to run a web-based business, including an Authorize.Net emulator mode. Support for retail merchants consists of a variety of countertop terminals that accept both EMV and NFC-based payment methods, as well as the iProcess mobile payments system. Note, however, that the transaction pricing disclosed on the company’s site applies to low-risk accounts only.

Best High-risk Merchant Account Providers in 2022

Free terminals and other promotions depend on processing volume, credit and qualifications. Get in touch today to learn more about how we support high-risk payments. Don’t let an arbitrary risk-related label affect your ability to thrive and grow.

These excessive charges can make high-risk processing less appealing. Chargebacks can wreak havoc on your cash flow and profitability. This FREE paperback book is your guide for preventing chargebacks and, when they happen, fighting them more effectively. Rates can be negotiated with processors to an extent, but this isn’t always the case. In certain instances, the processor has already gone as low as possible.

Host Merchant Services

Having one primary processor means that it can provide more specific pricing information. On the other hand, it also means that if your business does not qualify for Host Merchant Services’ high-risk merchant qualifications, you’re out of luck. If this is a deal breaker for you, consider Durango or PaymentCloud for more back-end processor options. Overall, PaymentCloud’s customer support is extremely helpful but difficult to get in touch with.

We preach transparency and when it comes to pricing, none of the aspects are compromised. In many cases, a business license is a requirement for our team to approve your application.

How do high-risk accounts differ from regular accounts?

An expert underwriter will review your application and set a processing limit. Meaghan Brophy is the Retail Expert at Fit Small Business focusing on small business retail and ecommerce content. Dachondra Cason is a freelance writer and business consultant in Atlanta, GA. She has over 8 years of professional experience, with a focus on finance and small businesses. Topics she has covered include creating effective business plans, fraud prevention, and digital marketing.

How do you solve high merchant risk?

Make sure your processing is PCI-compliant and 3D Secure. By proxy that means you should have your payment service provider hosting your authentication process. Always verify billing addresses and CVV codes in your gateway. Make sure you're working with reliable and reputable merchant services.

Choose a credit card processing company that will only charge you for transactions conducted on your website or app. However, all PSPs have strict policies against servicing most high-risk businesses. To evade these policies, some merchants fudge the truth about their business’s nature. Lying to your processor about your business will get your account shut down immediately. You’ll also probably be placed on the MATCH list, making it far more difficult to get approved by any merchant account provider.