Every company, physical or online, should accept credit cards and other online payment methods. It is important to work with a reputable payment service provider, but finding the right one is difficult; most payment processing companies serve ordinary businesses and retailers, but finding a reliable service provider for high-risk merchants is challenging.
Most businesses that are considered high-risk are either turned down by traditional payment processors or require a high-risk merchant account with specialised support and tools to avoid fraud. It is vital to have knowledge regarding high-risk businesses and the finest payment processing companies that provide merchant accounts for them.
What is a high-risk merchant?
A high-risk merchant or business is one that payment processors, banks, and other institutes perceive risky to work with—such businesses have a significant risk of fraudulent transactions and are vulnerable to chargebacks from customers. Each processor determines various factors before deeming a business high risk, which is why one payment processor may consider a firm to be high-risk, whereas another might not.
Businesses with poor personal credit, high chargeback rates, high average sales, multi-level marketing, etc., are generally considered high risk. Some examples include legal services, vape and CBD companies, gambling and betting companies, subscription services, travel and tourism, etc. Even startups and offshore vendors are considered high-risk most of the time.
Need of a high-risk merchant account
Certain factors are considered before giving a loan or insurance coverage to a business. Similarly, businesses find it hard to open a traditional merchant account if they are deemed high risk and don’t fall under the policies of a traditional bank; in this case, you need to find a payment processor that works with high-risk merchants.
High-risk merchant accounts usually involve very high account fees and processing rates; they offer long-term contracts and charge money for early termination. There are some payment processors that have fair pricing and specialize in such accounts, they have quality services with a lot of benefits to risky businesses.
- Provide high protection against frauds and scammers
- Low restrictions on international payments and transactions
- You can use recurring billing
- Reduce chargebacks through load balancing and process high-volume sales
Businesses may need to spend more on opening high-risk merchant accounts, but it is certainly worth it. Such payment processors reduce fraudulent transactions and reduce risky, troublesome situations for your business.
The best high-risk payment processing companies
High-risk businesses should take a look at our following list featuring the best payment processors for risky merchants, most of them are well-known and trusted by many merchants. Even though opening such accounts is costly, most of these companies offer fair prices and secure services to their clients.
Businesses need to contact several companies and compare their prices and services before making a final decision. Go with a payment service provider that suits your requirements and fits your budget. Here are the best options available out there:
Most merchants consider PaymentCloud to be the best option out there. The company partners with multiple acquiring banks and processors to get a high-risk merchant account approved at reasonable prices. There are no account setup or application charges for new clients and merchants also get a free virtual terminal upon opening an account.
The company has a 98% approval rating from partner banks, and you can get a quote for free. Most obacco, CBD, vape companies, diet coaches, tech support companies, etc., work with PaymentCloud.
Host Merchant Services
Host Merchant Services accommodates multiple high-risk businesses and is a great option for merchants who can get approved. It used to be a web hosting company and is ideal for E-Commerce businesses. The company uses TSYS Merchant for its backend. Merchants can get a free EMV terminal if they process over $20,000 monthly.
Businesses have the option to choose Host Merchant’s Transaction Express, Authorize.net, or any other payment gateway. If your business is approved by the company, you don’t need to pay any application or early termination fees. Clients have access to 24*7 customer support, but low-volume merchants may find the company expensive.
Among the oldest and most recognizable payment processors in the industry, Durango is loved by merchants for fair pricing, exceptional customer support, and transparency. It does not disclose prices and uses a quote system based on the business. The company works with US-based processors, but you can set up an offshore account too.
Its payment gateway is secure and offers all payment features. Each merchant account holder gets a dedicated account manager to look at any issues. Retail merchants can get NFC and EMV based payment terminals. The power to work with offshore providers is what sets Durango apart from others.
A fast-growing payment processor, PayPound offers various high-risk companies with secure payment solutions. The company’s payment gateway has great security and protection, fraud-prevention technology, reporting tools, and free lifetime customer support. PayPound serves multiple industries like Cyptocurrency, CBD and Vapes, Forex, Adult Industry, etc.
Many customers prefer paying with their local currency, and PayPound offers alternate payment methods to make it possible. The company is great for risk evaluation and management that helps provide comfortable payment solutions to clients.
Many CBD, adult products, pawnshops, travel, vape, and similar high-risk businesses trust PayKings with their payment services. PCI-DSS certification ensures the security of data and transactions made through PayKings. They offer you chargeback management and recurring billing features along with basic services.
The processor offers ACH payments and Level 1, 2 and 3 credit card processing. This is based on the details and info needed to process a transaction. PayKings charge a 2.49% transaction fee, but it can vary based on a business’ past transaction processing history.
For high-risk merchants, finding the proper payment processing provider is a difficult task. If you do not maintain a seamless money flow between your customers and yourself, your business may collapse. High-risk payment processors are often more pricey and have rigid rules.
However, The payment processors mentioned above provide high-quality, secure payment solutions at reasonable costs, many high-risk retailers rely on PaymentCloud, PayPound, and other firms for safe payments. If you operate a high-risk firm, it’s a good idea to work with one of these payment processors.