7 Best High-Risk Merchant Accounts Reviewed

Choosing a payment processor when you’re in a high-risk industry is about more than just finding a company that will approve you. It’s about finding a true partner. This isn’t a simple utility you can set and forget; it’s a foundational relationship that directly impacts your cash flow, customer trust, and ability to scale. The wrong provider can leave you with frozen funds and surprise fees, while the right one can offer the stability and tools you need to thrive. This guide is designed to help you look beyond the basic sales pitch and evaluate what truly matters, so you can select the best high risk merchant account for your specific needs.

Key Takeaways

Look beyond the rate sheet: The best high-risk provider isn’t always the cheapest. Prioritize a partner with proven experience in your specific industry, transparent contract terms, and robust fraud prevention tools to ensure long-term account stability.
Your account’s health is in your hands: Getting approved is just the first step. Actively use your provider’s fraud prevention suite, maintain clear customer communication to reduce disputes, and stay on top of compliance to keep your account in good standing.
Scrutinize the fees and fine print: Protect your cash flow by demanding a clear breakdown of all costs, especially chargeback penalties and reserve requirements. A fair contract with a flexible cancellation policy is just as important as a competitive transaction rate.

What Is a High-Risk Merchant Account?

Think of a high-risk merchant account as a specialized payment processing account designed for businesses that traditional banks might consider too risky. If you operate in an industry with a higher-than-average rate of chargebacks or fraud, this type of account is what allows you to accept credit and debit card payments securely. It’s not a penalty; it’s a solution tailored to the unique challenges your business faces, ensuring you can process transactions and keep your doors open.

So, what exactly makes a business “high-risk”? Payment processors assess several factors, but it often boils down to your industry and transaction history. Businesses in sectors like travel and ticketing, subscription services, online gaming, and credit repair are frequently classified as high-risk due to their increased potential for customer disputes and chargebacks. Your processing history also plays a big part. If your business has experienced a high volume of chargebacks in the past, you’ll likely need a high-risk merchant account to continue accepting card payments.

While these accounts typically come with higher fees and stricter terms than standard accounts, they offer critical advantages. Most importantly, they give you a reliable way to get paid. Many high-risk providers also offer advanced fraud detection tools designed to protect your revenue and reduce the very chargebacks that place you in this category. This allows you to serve a broader customer base, including international clients, and gives you the stable payment infrastructure you need to grow your business with confidence.

What to Look For in a High-Risk Provider

Choosing a high-risk payment provider is a huge commitment. This isn’t just about finding the lowest rate; it’s about finding a partner who understands the unique pressures of your industry and has the infrastructure to support your growth. When you start comparing options, it’s easy to get lost in the details. Let’s focus on what truly matters.

First, let’s talk about the fee structure. High-risk accounts often come with different costs, so you need to look closely. Pay special attention to chargeback fees, as these can add up quickly. A provider with lower, more predictable fees for disputes can save you a lot of headaches. Similarly, look for competitive transaction rates and ask about cash reserves. Some processors hold a percentage of your revenue as a security deposit, which can seriously impact your cash flow. Finding a provider with low or no reserve requirements is a major win. Some even offer surcharging support, allowing you to pass a small fee to customers to help offset processing costs.

Next, think about how the provider will fit into your daily operations. If you sell to customers around the world, you absolutely need a processor that handles international payments and currencies without a hitch. Also, check for software integrations. Your payment processor should connect smoothly with the tools you already use, like your accounting software or ecommerce platform. This saves you from manual data entry and keeps your business running efficiently. Make sure they also support all the transaction types your business relies on, whether that’s online, in-person, or over the phone.

Finally, don’t underestimate the value of expertise. Look for a provider that specializes in high-risk industries like yours. They’ll be more familiar with the regulatory landscape and common challenges you face, which translates to better support and fewer surprises. It’s tempting to just pick the cheapest option, but the right partner offers great overall value—blending fair pricing with robust features and knowledgeable support that can help you solve problems before they start.

Our Top 7 High-Risk Merchant Account Providers

Finding the right partner to handle your payments can feel overwhelming, but it doesn’t have to be. We’ve done some of the legwork for you by looking at some of the most trusted names in the industry. Each provider has its own strengths, so think about what your business needs most as you review your options. Whether it’s stellar customer service, low fees, or specific industry expertise, there’s a solution out there for you.

1. Borderfree Payments

As specialists in high-risk payment processing, we focus on providing stable, secure, and scalable solutions tailored to your specific industry. We understand the unique challenges high-risk businesses face, from regulatory hurdles to managing chargebacks. Our approach is to build a true partnership, offering dedicated support and a robust infrastructure that handles multi-currency transactions seamlessly. We work to remove payment barriers so you can focus on growing your business globally. Our goal is to provide a reliable foundation that keeps your revenue flowing without interruption, no matter where your customers are.

2. PaymentCloud

If you value strong customer support and easy software integration, PaymentCloud is a solid contender. They are well-regarded for their hands-on service, which can be a huge relief when you’re dealing with the complexities of a high-risk account. According to Forbes, PaymentCloud is known for connecting with many popular software platforms, making it easier to integrate payment processing into your existing workflow. They also offer free card readers if you opt into their zero-cost credit card processing model, which can help you save on upfront equipment costs and get started more quickly.

3. Durango Merchant Services

For businesses in particularly challenging or emerging industries, Durango Merchant Services is a name that comes up often. They specialize in serving very high-risk businesses that other processors might turn away. A key feature is their ability to accept crypto payments, which is a major advantage if you want to cater to a tech-savvy customer base. Durango also provides robust fraud protection tools, helping you secure your transactions and protect your bottom line. Their focus on the highest-risk categories makes them a go-to for merchants who need a truly specialized solution.

4. PayKings

One of the biggest worries for any high-risk business is simply getting approved for an account. PayKings addresses this head-on by promoting a 99% approval rate for new accounts. This can provide significant peace of mind if you’ve been rejected before or are concerned about your industry classification. They focus on getting businesses secure payment processing solutions quickly and efficiently. Their high approval rate suggests a deep understanding of the underwriting process for a wide range of high-risk industries, making them a reliable choice for merchants who need to get up and running without delay.

5. National Processing

If you’re looking for a provider that delivers solid value, National Processing is worth a look. They are known for offering a good balance of features for the cost, making them an attractive option for budget-conscious businesses. A standout feature is their proactive approach to chargebacks; they actively watch for disputes to help you address them before they become bigger problems. National Processing also provides free starting equipment, which helps lower the initial investment required to start accepting payments. This combination of affordability and protective features makes them a strong all-around choice.

6. High Risk Pay

Similar to PayKings, High Risk Pay is another provider that emphasizes accessibility for merchants. They also boast a 99% approval rate, positioning themselves as a dependable partner for businesses that might struggle to find a home elsewhere. This high rate of merchant approval makes them a reliable choice for those in industries like CBD, firearms, or adult entertainment. When you’re in a high-risk category, knowing a provider has a track record of successfully onboarding businesses like yours can make all the difference. Their focus is on creating stable, long-term merchant accounts.

7. Host Merchant Services

For smaller businesses or those with lower transaction volumes, Host Merchant Services offers a flexible and supportive solution. They are recognized for working with a wide variety of high-risk industries and providing excellent customer service, which is crucial when you’re just starting out. One of their key features is the option to add a fee to credit card purchases, a practice known as surcharging. This can help you offset processing costs directly. Their suitability for low-volume businesses makes them an ideal starting point for new entrepreneurs entering a high-risk market.

Breaking Down the Costs: A Guide to Common Fees

When you’re running a high-risk business, the fee structure for your merchant account looks a bit different. It’s not just about one single rate; it’s a combination of costs that can affect your profitability. Let’s walk through the most common fees so you know exactly what to look for and can compare your options without any surprises. Understanding these costs is the first step to finding a payment partner who truly supports your growth.

Monthly Fees

Think of this as your account’s subscription cost. Providers charge a monthly fee, typically between $5 and $45, simply to maintain your account and provide ongoing support. While it might not be the largest expense, it’s a fixed cost that adds up over time. When you’re comparing providers, make sure you’re looking at the whole picture, not just this single fee. It’s one piece of the puzzle when evaluating different high-risk merchant accounts.

Transaction Fees

This is the fee you’ll pay on every single sale. For high-risk accounts, transaction fees usually start around 1.95% to 2.4% but can climb higher depending on your industry and sales history. Some businesses might see rates from 3.5% to over 10% per transaction. This percentage is directly tied to your business’s risk profile, so a provider who understands your industry can often offer more competitive and stable rates. Always ask for a clear breakdown of these fees.

Setup Fees

A setup fee is a one-time charge for getting your merchant account established. Some providers will waive this to win your business, while others might charge a few hundred dollars. The important thing is to ask about it upfront. You’ll want to get a clear, itemized list of any initial charges before you sign a contract. This helps you avoid any hidden costs that could be bundled into the setup process, ensuring a transparent start to the partnership.

Chargeback Fees

Chargebacks are a major headache for high-risk merchants, and the associated fees can sting. When a customer disputes a charge, your processor will charge you a penalty fee, which can range from $25 to $100 or more per incident. These fees apply even if you win the dispute. Because high-risk industries often face more chargebacks, it’s vital to find a provider with reasonable chargeback fees and, more importantly, one that offers robust tools to help you prevent disputes from happening in the first place.

Reserve Fees

A reserve is a portion of your revenue that the payment processor holds back to cover potential losses from chargebacks or refunds. Think of it as a security deposit. While it’s a standard practice for high-risk accounts, it can directly impact your cash flow. A typical rolling reserve might hold back 5% to 10% of your sales for a set period. Be sure to ask what the reserve percentage is and how long it will be held so you can plan your finances accordingly.

Read the Fine Print: What to Check in Your Contract

Alright, let’s talk about the least exciting but most important part of this process: the contract. It’s easy to skim through the legal jargon, but this document outlines the entire relationship between your business and your payment provider. Taking the time to understand it now will save you from major headaches and hidden costs down the road. A reputable provider will be transparent, but it’s still your job to be your own best advocate.

Think of the contract as the blueprint for your payment processing. It details everything from how long you’re committed to what happens if you want to leave. You’ll want to pay close attention to the terms that directly impact your cash flow and operational freedom. Some providers, unfortunately, bank on the fact that high-risk merchants feel they have limited options and might try to lock them into unfavorable agreements. Don’t let that be you. Grab a cup of coffee, get comfortable, and let’s walk through exactly what you need to look for before you sign on the dotted line.

Contract Length and Cancellation Policies

First up, how long are you committed? Some providers push for long-term contracts that can last for several years. While a long-term relationship can be great, a rigid contract can feel like a trap if your business needs change or if the service isn’t what you expected. Look for providers that offer more flexible arrangements, like month-to-month agreements or one-year terms.

Equally important are the cancellation policies. What does it take to end the agreement? Be on the lookout for steep early termination fees (ETFs), which can cost you hundreds or even thousands of dollars. A fair provider will have a clear and reasonable cancellation process. Before you sign, make sure you understand all the contract terms and feel confident you can exit the agreement without facing a massive penalty.

Fee Adjustments and Reserve Requirements

Next, let’s talk about your money. A key detail to find in your contract is the reserve requirement. A reserve is a percentage of your sales that the processor holds back to cover potential chargebacks or refunds. While some level of reserve is standard in high-risk industries, an excessive one can seriously strain your cash flow. Ask for a clear explanation of the reserve percentage, how long it will be held, and the conditions for its release.

You also need to understand how and when your fees can be adjusted. Does the provider have the right to change your transaction rates with little to no notice? A transparent partner will outline a clear process for any fee modifications. The goal is to avoid surprises on your monthly statement and find a provider that doesn’t impose excessive reserves that tie up your working capital.

Flexibility and Transparency

Ultimately, what you’re looking for is a partner who is both flexible and transparent. The contract should be written in a way that you can actually understand, without needing a law degree. If a provider seems evasive when you ask questions about specific clauses or fees, consider it a red flag. A trustworthy company will be upfront about all its terms and work with you to ensure you feel comfortable with the agreement.

This is where doing your homework pays off. Check online reviews and see what other merchants say about their experience with the provider’s contract and overall transparency. A provider committed to fairness won’t rely on confusing language or hidden clauses to make a profit. They’ll offer a straightforward agreement that supports your business’s growth, rather than holding it back.

How to Choose the Right Provider for Your Business

Finding the right payment processor can feel like a huge task, but it’s one of the most important decisions you’ll make for your business. The right partner won’t just process your payments; they’ll provide stability, support your growth, and help you keep more of your hard-earned revenue. Instead of picking the first provider that approves you, take a strategic approach. By focusing on your specific needs, comparing specializations, and checking their security tools, you can find a provider that truly fits your business.

Define Your Industry-Specific Needs

Before you start comparing providers, get clear on what you actually need. The term “high-risk” covers a wide range of industries, from CBD and firearms to subscription boxes and travel agencies. Each has its own set of challenges. Are you dealing with complex regulations? Do you need to accept payments in multiple currencies? Is your business model prone to a high volume of chargebacks? Make a list of your top three to five operational and regulatory hurdles. This simple exercise will give you a clear checklist to measure potential providers against, ensuring you find one equipped to handle your specific situation.

Compare Provider Specializations

Not all high-risk processors are created equal. Some are generalists, while others focus on specific niches. A provider with deep experience in your specific sector will understand the nuances of your business, from compliance requirements to common fraud patterns. They often have stronger relationships with acquiring banks that are comfortable with your industry, which can lead to better terms and a more stable account. When you speak with potential providers, ask them directly about their experience with businesses like yours. A specialized partner acts as a guide, not just a gateway, offering more tailored support and a smoother path to success.

Evaluate Their Fraud Prevention Tools

For any high-risk business, chargebacks are a constant concern. That’s why a provider’s fraud prevention suite is non-negotiable. Look beyond the basic features and ask about their specific tools for stopping fraudulent transactions before they happen. Do they offer robust address and CVV verification systems? What about advanced tools like 3D Secure, IP intelligence, or AI-powered fraud scoring? The best high-risk merchant account service providers offer a multi-layered defense system. These tools are your first line of defense in protecting your revenue and keeping your chargeback ratio low, which is essential for long-term account stability.

Get the Most From Your High-Risk Account

Securing a high-risk merchant account is a huge step, but the work doesn’t stop there. Think of it as the beginning of a partnership. To keep your account in good standing and your business thriving, you need to be proactive. This means actively working to minimize chargebacks, staying on top of compliance, and using the support your provider offers. It’s not about setting it and forgetting it; it’s about ongoing management. By focusing on these key areas, you can manage risks effectively, maintain a healthy relationship with your provider, and ensure your payment processing runs smoothly. It’s all about making the most of the tools and resources now at your disposal. This approach helps you protect your revenue and build a stable foundation for growth, turning a potential challenge into a powerful asset for your business. When you treat your merchant account as an integral part of your operations, you’re not just processing payments—you’re building a more resilient and successful company. Your provider has approved you because they see your potential, and by being a responsible partner, you prove them right.

Reduce Chargebacks

Chargebacks are a major headache for any business, but they can be especially threatening in high-risk industries. The best defense is a good offense. Your payment processor should offer a suite of tools designed to spot and stop fraudulent transactions before they happen, which is the leading cause of chargebacks. Make it a priority to learn how to use these features. Many providers offer robust fraud detection that can flag suspicious orders, verify customer identities, and ultimately help you prevent chargebacks. Don’t wait for a dispute to happen; actively use these tools to protect your revenue and keep your chargeback ratio low.

Maintain Compliance

Compliance is the foundation of a stable merchant account. Your business was likely classified as high-risk because your industry is more susceptible to fraud or regulatory scrutiny—think subscriptions, travel, or nutraceuticals. It’s crucial to understand and adhere to your provider’s terms of service. Take the time to carefully read every detail of your merchant account plan, paying close attention to the rules around transaction processing, marketing claims, and billing. Staying compliant isn’t just about avoiding fines; it’s about demonstrating that you’re a trustworthy merchant, which is essential for a long-term relationship with your payment processor.

Use Your Provider’s Support

Don’t think of your provider’s support team as just an emergency hotline. They are a valuable resource for the day-to-day running of your business. Reliable and responsive customer support is a key feature of any good high-risk account, so don’t hesitate to use it. Have a question about a fee on your statement? Ask them. Need help setting up a fraud filter? Reach out. A great support team wants to see you succeed and can offer guidance on everything from technical issues to best practices for your industry. Building a good rapport with them can make all the difference in ensuring your operations run without a hitch.

Common Hurdles (And How to Clear Them)

Operating in a high-risk industry means you’ll face a few extra challenges, but don’t let that discourage you. With the right partner and a proactive mindset, you can handle these hurdles and build a resilient business. The key is to anticipate potential issues and have a clear plan for addressing them before they become major problems. Think of it as building a stronger foundation for your business to grow on. Let’s walk through the most common obstacles and the practical steps you can take to clear them.

Manage Higher Fees

It’s true: high-risk merchant accounts almost always come with higher processing fees. Processors take on more financial risk when they partner with you, and their pricing reflects that. While you can’t avoid this reality entirely, you can certainly manage it. The first step is to get complete clarity on what you’re being charged. A reputable provider will be transparent about their costs, but it’s on you to read the fine print. A clear understanding of the fee structure—including setup, transaction, and monthly fees—is essential for forecasting your expenses accurately and protecting your profit margins from the start.

Ensure Account Stability

Nothing disrupts business like a frozen or terminated merchant account. For high-risk businesses, the biggest threat to account stability is a high chargeback ratio. Because these businesses are more susceptible to disputes, you need a processor that does more than just handle transactions. Look for a partner with robust chargeback prevention tools and alerts that help you stop disputes before they happen. Remember, you aren’t powerless here. Even with a high-risk account, you can take active steps to lower your chargebacks by refining your customer service, providing clear product descriptions, and ensuring timely shipping. A stable account is a sign of a healthy, well-run business.

Stay Compliant with Regulations

High-risk industries are often subject to a complex web of regulations that can change without much notice. Staying compliant isn’t just good practice; it’s essential for keeping your payment processing active and avoiding hefty fines. This is where a specialized provider becomes invaluable. Some processors specialize in specific high-risk industries, like CBD, firearms, or subscription services, because they have deep expertise in those particular regulatory landscapes. Partnering with an expert who understands the nuances of your field gives you a powerful ally in maintaining compliance, letting you focus more on running your business and less on deciphering legal jargon.

What’s Next for High-Risk Payments?

The world of high-risk payments is anything but static. As e-commerce continues to expand into new industries, the technology and regulations that support it are evolving right alongside. For you, this means that the solutions available are becoming more sophisticated, secure, and user-friendly. Staying aware of these trends helps you make smarter decisions for your business and partner with a provider who is prepared for the future. The landscape is shifting toward smarter technology, tighter regulations, and a much stronger emphasis on the merchant’s experience. This is great news for business owners, as it signals a move toward more stable and supportive payment processing for everyone.

The Rise of Smarter Fraud Prevention

One of the biggest shifts is in how we fight fraud. Processors are moving beyond basic filters and are adopting more advanced fraud detection tools that use machine learning and AI to identify suspicious activity in real time. Instead of just reacting to chargebacks, these intelligent systems learn your transaction patterns to predict and block fraudulent payments before they ever happen. This proactive approach is a game-changer for high-risk merchants, as it helps protect your revenue, lower your chargeback ratio, and create a more secure environment for your legitimate customers. It’s less about building a wall and more about having a smart security guard who knows exactly what to look for.

Keeping Pace with Evolving Regulations

It’s no secret that regulatory oversight is increasing across the board. As digital commerce grows, governments around the world are implementing stricter rules for payment processing, especially in high-risk sectors. While this can feel daunting, it’s ultimately about creating a safer and more transparent market. The key is to work with a payment provider who is an expert in compliance. A great partner will not only keep their own systems up-to-date but will also provide you with the guidance and tools needed to ensure your business remains compliant. This lets you focus on running your business, not on trying to decipher complex legal changes.

A Greater Focus on Customer Experience

For a long time, high-risk merchants had to settle for clunky interfaces and complicated onboarding. That’s changing fast. As demand for high-risk solutions grows, providers are competing to offer a better customer experience. This translates to more intuitive dashboards, streamlined application processes, and more responsive support teams. Processors are realizing that a user-friendly platform is just as important as a secure one. This focus on experience is often fueled by partnerships with innovative fintech companies, leading to better technology and more seamless integrations that make managing your payments easier than ever.

Frequently Asked Questions

Why are the fees for high-risk accounts so much higher? Think of it as a form of insurance for the payment processor. Because your industry has a higher statistical likelihood of chargebacks, the processor takes on more financial risk by partnering with you. The higher fees help them cover potential losses from customer disputes and fraud. It’s not a penalty against your business, but rather a reflection of the risk associated with your industry as a whole. A good provider balances this risk with fair pricing that still allows your business to be profitable.

If my business is labeled high-risk, is it permanent? Not necessarily, but it does take time and a lot of consistency to change that classification. After you’ve maintained a stable processing history with a very low chargeback rate for a significant period—often a couple of years—you may be able to apply for a standard, low-risk account. It requires building a strong track record that proves your business is a minimal risk. For now, the best approach is to focus on running your business responsibly within the high-risk framework.

What’s the deal with a “rolling reserve” and when do I get that money? A rolling reserve can feel confusing, but it’s essentially a safety net for the processor. They hold a small percentage of your daily sales (often 5-10%) in a non-interest-bearing account for a set period, usually around 180 days. This fund is used to cover any potential chargebacks that might arise. After the holding period for a specific day’s sales passes, that money is released back to you. It creates a continuous cycle where funds are always being held and released, which can impact cash flow but is a standard practice for protecting the processor.

What happens if my application for a high-risk account gets rejected? First, don’t panic. A rejection from one provider doesn’t mean you’re out of options. The best first step is to ask the provider for the specific reason you were denied. Sometimes it’s a simple issue you can fix. If not, focus your search on providers who specialize in your exact industry niche, as they have a better understanding of your business model and often have higher approval rates. Providers like PayKings or High Risk Pay, for example, build their reputation on getting merchants approved.

Besides lowering my chargebacks, what’s the best way to keep my account in good standing? Clear and proactive communication is your best tool. Keep your provider in the loop about what’s happening with your business. If you’re about to launch a big marketing campaign that you expect will cause a spike in sales, let them know ahead of time. This prevents your account from being flagged for unusual activity. Treating your provider like a partner and being transparent about your operations helps build trust and demonstrates that you are a responsible merchant.

7 Best High-Risk Merchant Accounts for Your Business