High-risk payment solution 2022

Everyone is very well aware of the term “high-risk payments” Ohh!! You aren’t? Then worry not. In this blog, you will learn about high-risk payments along with the solutions.

You struggle to find a merchant account due to the involvement of risks in your industries. It is always the acquiring bank call, if they want to issue you a merchant account or not.

Don’t ever fall into the trap of lazy brokers or ISOs. Always prefer experts for any type of merchant account as they take care of the risks involved in high-risk businesses.

Instant fund transfers through secure payment channels are what everyone seeks. There is no doubt that everyone is opting for cashless payments. We know that it is comforting and convenient to make payments via cards. Despite this comfort, there is always a chance of fraud, you can never get ahead of those fraudsters who are always active in the online world.

To tackle all these problems like online fraud and theft, payment processors enter like a hero to rescue. These payment processors contain all the essential tools. And also contains the solutions to keep any type of cashless payment safe and secure.

Although, it is not easy for high-risk merchants to find a reputable payment processor. It requires consideration with time and effort to apply for high-risk payment processing.

You must know how to play your cards right, then only you will find a suitable payment processing partner.

We have been talking about high-risk payment processing for so long. So without further ado let’s straight away get into the topic.

But wait!

 Let us first start by understanding the term high-risk payment processing.

Difference between High risk, Mid risk, and Low-risk industries?

What is High-risk payment processing?

In the financial world, for banks and other services, merchant partners are risk bearers. If any business has a huge risk, then it will surely impact their services. In some cases, some providers close their services permanently for high-risk merchants. There are chances that these merchants are at a high risk of chargebacks. 

Not aware of the chargeback? Don’t worry, keep reading, you will have a complete idea about it.

Now let us start this topic by knowing about the payment processor.

Payment processors

Service providers work as a middleman between buyers, financial institutions, and merchants. They make sure of the seamless and secure transactions taking place through various channels. They help this much to complete the cashless transaction without any hassle.

They carry huge responsibilities like:

  • Authorizing debts
  • Standing as a strong guard against fraud and threats, etc.

They assure you of the payments that pass through buyers to financial institutions which come to your merchant account.

What is a chargeback?

It is a term that usually happens when buyers dispute the transactions. They need a complete refund of the payment they paid. This feature is also known as “friendly fraud”, which was made just to protect the buyers. But while requesting a chargeback, banks, card issuers and even businesses have to bear high steep fees.

Now it is clear and very well visible why banks always decline to offer their services to high-risk merchants. Because high-risk merchants bring high chances of loss. They pose the threat of loss not only for themselves but also for financial providers.

No one wants a loss, that is why banks and payment processors run away from any type of partnership with high-risk merchants.

But, it is not always the case. There are so many high-risk payment providers that are willing to provide their services to high-risk clients. There can be slight differences in the services they provide but the goal is the same-

  • Secure
  • Safe
  • Seamless and 
  • Cashless transactions.

Related: Mobile Wallets: A New Revolution To The Payment Space

Features of High-Risk payment processing

It is a cliché that payment processing is just to ease payments but no, there is more to it. it makes sure that money goes through to the merchant account. Payment processing improves the shopping experience of the buyers. They provide various tools, solutions, and features to merchants they serve. You have to do some research to get the best payment processor gateway. They offer tons of features to their clients.

Payment processors offer their various services according to the needs of your business. You must always know of the advantages of the features that payment processors provide to you. Let us see some of the features that payment processors provide to you.

Mobile payments

We have been talking about cashless for a while now, and it indicates mobile payments. This feature lets customers pay or make transactions with ease by using their phones. Payment processors give Card-reader hardware to merchants that they can easily operate-in stores. With this hardware on hand, they can easily transfer the funds without any need for a card.

Related: 10 Benefits of Using a Mobile Wallet

Fraud detection

There is no doubt that is the most important feature a payment processor provides. It is also the most helpful feature of the payment processing tool. Only the best payment processing companies provide this feature to the merchants to limit the risks of chargebacks.

This tool detects any type of potential fraud by scanning customers’ information. If there will be any chances of fraud during the payment, this feature will automatically decline and report to both buyer and the merchant. It will alert the potential threat to both buyer and the merchant.

Virtual terminal

VPOS (virtual-point of sales) is exactly what you think it is. It is a browser-based virtual point-of-sales software. Buyers can send their payment by keying in their card information too without showing their card.

This is a type of card-not-present transaction. It is also the form of online payment processing that merchants can easily use to make sure of their online purchases.

Manages customer information

There has been some research about the buyers. It proves that buyers repeat the purchases if they are sure of the easier and faster process. The feature of customer information management helps you by safely and securely storing:

  • Buyer’s name
  • Card details
  • Contact information
  • Shipping addresses and
  • Payment method preferences

It helps in auto-filling the order fulfillment forms whenever buyers make up their minds to repurchase. This feature also makes sure of the encryption of the data of the buyers. It saves the data from any type of online theft and fraud.

Easy checkout

This feature makes it easy for online buyers to make purchases as it makes the process quite simple to follow.

This feature grants a “Buy now” button to merchants that leads buyers straight to the checkout page. When they arrive on this page they can fill in the necessary information to make a payment.

It also encourages profitable customer action by acting as a virtual call to action function.

Automate recurring billing

This tool acts as a backbone of the business. it provides services or products granted or shipped monthly. When your buyer opt-in for a subscription, this feature will let you bill your buyers according to the schedule.

This allows the payment processor to automatically charge the linked account of buyers. This will disburse the funds right into your merchant account without any type of human intervention.

eCheck processing

Nowadays buyers and merchants prefer this payment method as it has a low processing cost. It is not a cup of cake for every payment processor to provide this feature of eCheck processing.

The payment processors that provide this feature are popular as the Best payment processing gateways. This feature helps you expand your payment options thus allowing you to grow your customers.

Related: What is Transaction Monitoring and why is it important?

High-risk payment industries

There are a specific amount of High-risk industries. The reason is the high amount of chargebacks along with the number of online frauds. Businesses in these high-risk industries always have trouble finding merchant services. High-risk industries include:

  • Hemp
  • Kratom payment processing
  • Payday loans
  • Travel merchant account
  • Adult entertainment, products, and services
  • Travel merchant account
  • Alcohol
  • Automotive
  • Charter
  • Forex
  • Cryptocurrency
  • Firearms
  • Digital products and vouchers
  • Subscription
  • Jewelry
  • Property management
  • Guns and ammunition
  • Pharmaceuticals

Related: Different types of risk in a high-risk industry?

Financial service providers hesitate to provide their services to businesses in this industry. A well-known bank will think a thousand times before providing its services to adult entertainment services.

It does not change the fact that like every other business, these businesses should be able to enjoy seamless, secure, and fast payments. That’s why some high-risk payment processors have taken this task upon their shoulders.

Related: Why is Fintech considered the Future of Finance?

Benefits of High-risk payment processing

You should always look out for high-risk payment processing to partner up with. There are various services other than the cashless payment that this payment processing provides. So what are we waiting for, let’s straight away jump into the benefits of high-risk payment processing?


We’re very aware of the fact that security is a top concern. Why shouldn’t it be? You are a high-risk merchant. It brings great change if you partner up with a trustworthy payment processor.

Keep an eye on the security features they provide to their clients.


High-risk payment processing provides tools to ease the payment process for buyers and businesses. Some of those features are-

  • Quickbooks
  • Automated recurring billing
  • Customer information management

These tools take a lot of burdens away from customers’ shoulders. It also increases the chances of repurchasing by those customers.


Yes, it is true there can be only one preference but providing various options to your customers can turn out to be fruitful for your business. It is not only the cashless payment features that payment processors provide. They provide more options like eChecks, mobile payments, and credit and debit cards.


Instant and fast payouts can result in normalizing cash flow. Merchants do not have to wait too long to receive the payments with the help of a payment processor as they authenticate the payment in a flash.

What is the fee for High-risk payment processing?

Well, of course, nothing is free in this world, these services aren’t free either. Merchants surely have to pay some decent amount to get all these services. Payment processors look out for some factors before charging for their services. Let us look at some of those factors:-

Payment method

You wouldn’t know but card-not-present transactions pose a higher risk than an actual physical card. There is only one problem with the actual card fee being quite high during the payment.

This makes sure that the method of payment has the most important role in the processing fees.

Fees for a merchant account

You can use payment processing services shoulder to shoulder with a merchant account. The acquiring banks can ask for a per-transaction fee. They ask for this fee for every processing payment that goes into the merchant account.

These acquiring banks that manage the merchant accounts can also ask for maintenance fees and even possible disputes.

Interchange rates

Issuers like Mastercard and Visa card impose interchangeable rates that keep on changing from issuer to issuer. Card banks assume certain risks and these interchange fees cover those risks.

How can you choose a High-risk payment processor?

You have plenty of options to choose from as there are so many payment processors that are ready to work for your business.

But how can you guarantee the growth that a payment processor promises to bring? To help you in this situation let us tell you about some points. You have to keep these points in mind while choosing a reliable high-risk payment processor.


Not every payment processor provides the features that are well-suited for your business. For this, you must be aware of the functions that you would need in a payment processor. Functions like- Customer retention, fraud protection, security, and efficiency.

After researching, look out for the payment processor that is providing these services. So you don’t get disappointed after setting up the partnership.

Positive feedbacks

Reviews are an important thing for every business. It shows the satisfaction from goods and services. If there are negative reviews for the payment processor then it does not matter how good a payment processor is.

Reasonable price

Partnership with a payment processor is not cheap, you will have to loosen up your pocket a bit. If we consider the fees they impose on every transaction that they process. Make sure that you are working with affordable payment processing.

How to apply for High-risk payment processing?

Are you ready to hop on to the next step? We hope you have found a reliable high-risk payment processor for your business. Well, be ready with the proper documents that will help in the fast approval of the application.

To accomplish this, follow these steps:

A merchant account is a must

You should have a merchant account before looking for payment processing services. If you don’t have a merchant account, most of the processors will open that account for you.

They provide you with the whole package as they have partner acquirers.

Prepare the documents

You have to provide all the necessary documents to your provider. To make sure of the full preparation you can ask for a list of requirements from the processor.

Submit the application form and documents

You first have to complete the application form and then submit the documents for review. Processors will take enough time to make sure that you are the right fit for their services.

The process is also called the “merchant underwriting process”.

Negotiate terms

After reviewing your application and documents, the processor will likely get back to you. They will assign a full contract containing the details of the partnership’s specifics, and charges you will have to pay for their services.

Read the whole contract they hand you over and do not hesitate to ask for any doubt that goes against your will.


Interested in taking your business to new heights? We’re in the same boat. Paypound Processing specialises in high-risk payment processing for merchants who are hard to find. Our simplified, refined, & professional tools & features. That put us ahead in the race & set our merchant partners on the fast track to accomplishing.
To learn further about our services, immediately contact or apply to initiate the process. Cashless payments are now more feasible than before thanks to Paypound Processing.

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