High Risk Merchant Account & Payment Processing Solutions

Choose High Risk Pay as your merchant account provider

Beyond that, High Risk Pay’s expertise and long-term relationships with banks and other financial institutions ensure that your business is always tapped into the most reliable services in the industry. Our high-risk merchant account solutions offer several valuable features for new and existing businesses alike, including chargeback management, credit card acceptance, fraud prevention, and ACH/eCheck processing.

By providing only the best industry-leading services, we strive to become the preferred high-risk merchant account provider for businesses throughout the U.S. Manage your payments faster, safer, and for less. Get instantly approved for your high-risk merchant account with us today.

Instant Approval for High-Risk Merchant Account

The underwriting process for high-risk businesses may take up to a few extra days than usual, especially in highly regulated industries. Rest assured, though, that our team works as hard as possible to get you approved quickly. 

The approval process at High Risk Pay typically takes 24 to 48 hours, which is faster than most other high-risk merchant account approvals. Our number one priority is to get your merchant account up and running as quickly as possible. A 99% approval rate means that your unique business is almost guaranteed approval and that you can begin accepting payments quickly and easily…

High-Risk Merchant Services for Any Credit History

We can set you up with a high-risk merchant account, even with bad credit. Not convinced? Our high-risk merchant account high average approval rate is 99% – the highest in the industry. With High Risk Pay, quickly get a bad credit merchant account with fast approvals and no setup and cancellation fees. It’s very easy to apply online. Find out more about our bad credit merchant accounts here.

High-Risk Merchant Account at Competitive Rates

What about fees? A high-risk merchant account can have higher taxes and restrictions on it. Fees vary by provider and heavily depend on your company’s specific needs. But at High Risk Pay, we don’t believe in punishing customers for being in a business that presents a greater risk of fraud or chargebacks.

Through High Risk Pay, fees are similar to traditional card processors. In return, you as a business owner get many ways to accept credit cards and debit cards for transactions. You will have the pleasure of serving your customers, while making transactions as convenient for them as possible. 

In addition, while other high-risk merchant account providers may charge up to a couple hundred dollars for application or setup fees, High Risk Pay charges nothing to set up your own high-risk merchant account.

What exactly is a high-risk merchant account?

Are you running an online store and wondering what a high-risk merchant account is? In that case, you might already have found yourself in a rather unique set of circumstances. It’s a known fact that most business owners will never hear the term “high-risk merchant account”. That is, unless their business has been flagged as such. The first time you hear about it, it may feel like a rather personal attack on your business or your capabilities as an entrepreneur. However, we’re here to assure you that’s not the case. A company labeled as “high-risk” is rarely a result of anything personal. In reality, it’s all very quantitative and has nothing at all to do with how you run your business. 

Payment processing institutions assume some risk with each transaction. The payment processor automatically assumes liability when a merchant does not have the funds to reimburse a customer for a disputed or fraudulent charge. So, in order to reduce this liability, payment processors (and by extension, merchant account providers) are selective about the kinds of businesses they work with. They won’t offer merchant services to businesses in certain verticals if they deem them too risky or inherently susceptible to chargebacks and fraud.

Consequently, these high-risk businesses are referred to as “high-risk merchants”. A high-risk merchant can be any company that sells products within a niche market, be it online or in physical stores. Travel agencies, adult stores, SaaS providers, dating websites, firearms dealers, and other unique verticals fall into this category.

High-risk merchant accounts are therefore necessary for businesses of this nature. Certain merchant account providers, such as High Risk Pay, specialize in working with high-risk businesses and offer merchant accounts that are specifically designed for this purpose. Through these merchant accounts, high-risk businesses can continue to handle non-cash payments from customers such as credit cards, ACH, and eChecks. 

How To Determine Whether My Business Is High-Risk

Each payment processor, bank, and account service provider define its own standards for identifying high-risk merchants. There are usually two major factors to consider: your industry (some verticals aren’t as stable or secure as others) and your financial profile (credit history, past performance, etc.). 

Moreover, they may also consider how heavily regulated a business’s industry is at both the federal and state levels, and how saturated its market segment is with similar companies. But in general, the one big red flag that would make payment processors flag merchants as high-risk is if the industry is more prone to fraud and chargebacks. This alone is usually enough to send them running in the other direction.

Here are all the factors payment processors typically use to determine whether your business is high-risk:

• Fraud & Chargeback Rates – Businesses with a high chargeback or fraud rate are automatically classified as high-risk by banks and payment processors. Businesses with a chargeback ratio over 1% are usually considered high-risk. Chargebacks can occur for any number of reasons, from customers forgetting they signed up to getting billed without their consent.
• Types Of Products And Services – Products such as software, tickets, seasonal items, etc. can point to a business with more unusual or inconsistent revenues. Payment processors consider this a very red flag and a sign of financial uncertainty.
• Reputational Risk – Companies that deal with sensitive customer information may suffer reputational consequences. This includes companies in the adult and tech sectors.
• Recurring Payments – Certain business models with high instances of chargebacks or fraud can send a warning signal to payment processors. A common example is recurring or subscription-based providers, with an increased risk of chargebacks, identity theft, and account takeovers. 
• Monthly Sales Volumes or Transaction Value – Financial institutions might consider a business high-risk if they routinely accept high-value transactions. B2B companies mostly have to deal with this factor.
• Credit Score – Banks are less inclined to lend money to individuals or businesses with poor credit scores. As a result, if you have a low personal credit score, your business may fall into high-risk categories.

To put it simply, the majority of institutions will consider a merchant high-risk if they have either a high fraud rate, a high sales volume, a poor credit score, or use recurring payments. 

Still having trouble determining whether your business is considered high-risk? Here are some questions that will help you:

• Is your business susceptible to chargebacks?
• Do you have a history of poor financial stability (bad credit, recent bankruptcy, etc.)?
• Is your average ticket or sales volume very high?

If you answered yes to any of the above questions, it’s possible that you may be considered a high-risk business by most payment processors and financial institutions. 

Frequently Asked Questions

What about PayPal, Square, and Stripe? Do they accept high-risk merchant accounts?

Unfortunately, there is no online payment processor that will work with high-risk businesses. For example, all three payment processors mentioned above do not allow merchant accounts for adult entertainment, gambling, or CBD companies – to name a few. Their policies are understandably restrictive in this regard. 

On the hunt for a PayPal, Square, or Stripe alternative? High Risk Pay has got you covered. High Risk Pay offers high-risk merchant accounts and payment gateway solutions to businesses from all verticals. We don’t discriminate. We offer fair, transparent pricing for high-risk merchants, starting from 1.79%. Plus, you’ll never be charged a setup fee or application fee. Get started today.