5 Best Payment Gateways for Hard to Place Merchants

It’s true that high-risk payment processing often comes with higher fees, but focusing only on the transaction rate is a mistake. The real value is in the features that protect your business long-term. Think robust fraud prevention that stops chargebacks before they happen, expert support from people who actually understand your industry, and flexible terms that adapt as you grow. A cheap gateway that can’t provide this level of security isn’t a bargain; it’s a liability. We’ll show you how to evaluate providers beyond the price tag to find the best payment gateway for hard to place merchants.

Key Takeaways

Understand What “High-Risk” Really Means: This label isn’t a critique of your business; it’s a technical classification for industries that require specialized security and underwriting that standard processors simply don’t provide.
Prioritize Features That Protect Your Revenue: A great high-risk partner offers more than just payment acceptance. Look for essential tools like advanced fraud detection, chargeback management services, and expert support to secure your income.
Prepare for a More Involved Partnership: High-risk processing requires transparency from both sides. Be ready to provide detailed documentation and understand terms like rolling reserves, which are standard practices for building a stable, long-term processing relationship.

What is a High-Risk Merchant?

If you’ve been told your business is “high-risk,” it’s easy to feel a little discouraged. But here’s the good news: it’s not a judgment on your business practices or your potential for success. It’s simply a classification used by payment processors and banks to label industries that have a higher statistical likelihood of chargebacks, fraud, or regulatory scrutiny. Think of it as a category, not a critique. At its core, the ‘high-risk’ label is about financial predictability. Traditional banks and processors thrive on stable, low-chargeback businesses. When a business model introduces variables—like fluctuating sales volumes or complex regulations—it disrupts that predictability.

This is where a high-risk merchant account comes in. It’s a specialized service designed to handle the unique needs of these businesses, underwritten by a provider who understands your industry’s complexities. This allows them to apply different underwriting standards, monitoring protocols, and fee structures to account for the increased financial exposure they take on. While these accounts often come with stricter terms and higher fees, they offer something invaluable: stability. For a high-risk business, partnering with the right payment processor isn’t just a good idea—it’s essential for long-term growth and peace of mind.

What Defines a Business as “High-Risk”?

So, what lands a business in the high-risk category? Payment processors assess several factors to determine their level of financial exposure. It’s not just about your industry; it’s also about your business’s specific profile and history.

Some of the most common reasons a business is classified as high-risk include:

A high chargeback ratio: If more than 1% of your transactions result in a chargeback, you’ll likely be considered high-risk.
Operating in a highly regulated industry: Businesses selling products like CBD, firearms, or adult content face complex legal rules.
Selling high-ticket items: Expensive products like jewelry or electronics carry a greater risk of costly fraud.
Inclusion on the MATCH list: This is a shared database of merchants whose accounts were previously terminated by a processor.
Poor credit history: Both personal and business credit scores are taken into account during underwriting.

Industries That Need Specialized Support

While any business can be flagged for its transaction patterns, some industries are considered high-risk by default. If you operate in one of these sectors, you’ll almost certainly need a specialized payment gateway to secure stable processing.

Common high-risk businesses include:

CBD and hemp products
Firearms and ammunition
Vape and e-cigarettes
Adult entertainment
Online gambling and casinos
Nutraceuticals and supplements
Debt collection services
Dropshipping and subscription models
Travel and ticketing agencies

This isn’t an exhaustive list, but it highlights the types of businesses that require a payment partner who understands their specific regulatory and financial landscape.

Why Standard Processors Don’t Work

You might wonder why you can’t just sign up with a popular, low-cost processor. The reality is, standard providers are built for low-risk businesses and have very little appetite for the complexities of high-risk industries. Many merchants get approved initially, only to have their accounts suddenly frozen or terminated weeks later when an automated review flags their business type.

This can leave you with held funds and no way to accept payments. Worse, some processors prey on high-risk merchants with deceptive contracts, hidden fees, and sky-high rates. Finding a dedicated high-risk payment gateway isn’t just about getting approved; it’s about finding a reliable partner who won’t pull the rug out from under you.

What to Look for in a High-Risk Payment Gateway

Choosing a payment gateway when you’re in a high-risk industry feels like a much bigger decision—because it is. The right partner won’t just process your transactions; they’ll actively protect your business and help you grow. Standard providers often miss the mark, lacking the specific features needed to keep your operations smooth and secure. When you’re comparing options, it’s not just about finding a processor who will approve your account. You need a gateway built from the ground up to handle the unique challenges you face every day, from higher chargeback ratios to complex compliance rules. The best high-risk gateways offer a combination of powerful technology, flexible contract terms, and dedicated support. These elements work together to create a stable foundation for your revenue, letting you focus on running your business instead of worrying about your payment processing. Think of it as finding a true partner, not just a service provider. This means looking beyond the surface-level transaction fees and digging into the features that will actually safeguard your income and reputation in the long run. A solid gateway acts as your financial infrastructure, so it’s crucial to choose one that’s both resilient and adaptable to your needs.

Advanced Security and Fraud Tools

For high-risk businesses, security is non-negotiable. Your payment gateway should be your first line of defense against fraudulent activity. Look for providers that offer a suite of advanced tools designed to spot and stop fraud before it results in a chargeback. This includes features like AVS (Address Verification Service), CVV verification, and sophisticated fraud scoring that uses AI to analyze transaction patterns. Some processors also provide customizable filters, allowing you to block transactions from specific IP addresses or countries. These fraud prevention tools are essential for protecting your revenue, reducing chargebacks, and maintaining a healthy merchant account.

Flexible Processing Capabilities

A one-size-fits-all approach doesn’t work for high-risk industries. Your payment gateway should offer flexible terms that align with your business model. This starts with clear, transparent pricing tailored to your sales volume and risk level, not a generic tiered structure. Beyond rates, review the contract terms carefully. Many high-risk specialists offer shorter contract periods or more lenient termination clauses, giving you the freedom to adapt as your business evolves. The right partner will work with you to create a custom processing solution that supports your operations without locking you into an unfavorable long-term agreement.

Robust Chargeback Protection

Chargebacks are a major concern for any high-risk merchant, and your payment gateway should provide more than just basic processing. Look for a partner with robust chargeback management services. This includes real-time alerts that warn you of potential disputes, giving you a window to resolve the issue directly with the customer. The best providers also offer dispute resolution assistance, helping you gather the necessary evidence and fight illegitimate chargebacks. Proactive chargeback prevention is key to keeping your merchant account in good standing and avoiding the high fees associated with excessive dispute rates.

Seamless Integration Options

Your payment gateway needs to fit perfectly into your existing tech stack. Before committing, confirm that the provider offers seamless integrations with your sales platforms. Whether you run an e-commerce store on Shopify or WooCommerce, use a specialized CRM, or have a custom-built website, the gateway should have ready-made plugins or a flexible API to make the connection simple. A smooth integration process ensures you can get up and running quickly without costly development work, allowing you to accept payments through your preferred online, mobile, or in-person sales channels without a hitch.

Expert Customer Support

When issues arise, you can’t afford to wait in a queue for a generic response. High-risk businesses need access to expert support from people who truly understand their industry. Look for a payment gateway that provides dedicated customer service, ideally with a designated account manager who knows your business. This person should be your go-to resource for everything from navigating the initial application and setup to resolving technical problems or clarifying compliance questions. Responsive, knowledgeable support is a sign of a true partner who is invested in your success and can help you keep your payments flowing smoothly.

The Best Payment Gateways for High-Risk Businesses

Finding the right payment gateway can feel like searching for a needle in a haystack, but the right partner is out there. A specialized gateway doesn’t just process transactions; it provides the security, support, and stability you need to operate confidently. They understand the nuances of your industry and have the infrastructure to handle challenges like chargebacks and regulatory hurdles. Let’s look at some of the top players in the high-risk space who can help you secure reliable payment processing.

Borderfree Payments

As a specialist in high-risk payment processing, we built Borderfree Payments to remove the barriers that hold businesses like yours back. We provide a completely tailored payment infrastructure designed for security, compliance, and reliability. Our approach is hands-on, offering expert guidance to help you manage regulations and scale your operations. With robust fraud prevention tools and seamless multi-currency support, we empower you to accept payments from customers around the globe without friction. We’re not just a processor; we’re a dedicated partner invested in your long-term growth and stability.

PaymentCloud

PaymentCloud is widely recognized as a top all-around choice for high-risk merchants. They stand out for their personalized service, working with you to create custom fee structures that fit your business model. With an impressive 98% approval rate, they often get businesses up and running within 48 hours. PaymentCloud is particularly helpful for merchants who have landed on the MATCH list, offering a path forward when other processors have said no. If you need a provider that offers extensive support and a customized payment plan, they are an excellent option to consider.

Durango Merchant Services

If you’ve been turned down by other providers, Durango Merchant Services might be the solution you need. They specialize in finding homes for hard-to-place merchants by leveraging their extensive network of banking connections in the US and internationally. This wide reach allows them to serve a diverse range of niche industries that often struggle to find processing partners. While approval can take a little longer—typically four to six business days—their expertise in navigating complex industry requirements makes them a reliable choice for businesses that don’t fit the standard mold.

PayKings

For businesses struggling with chargebacks, PayKings offers a powerful suite of tools designed for prevention and management. They equip merchants with smart fraud protection technology to stop fraudulent transactions before they happen. With a 99% approval rate, PayKings is also willing to work with businesses on the MATCH list, providing a much-needed lifeline. Their focus is on creating a secure processing environment to protect your revenue. It’s important to note that they primarily handle domestic payments, so if your business is focused on the US market and needs strong chargeback protection, PayKings is a strong contender.

eMerchantBroker

eMerchantBroker (EMB) operates as a dedicated high-risk specialist that connects merchants with a broad network of acquiring banks. This broker model significantly increases your chances of approval, as they can shop your application around to find the best fit. EMB has a reputation for securing accounts for a wide variety of industries, from startups to established businesses with high sales volumes. They focus on providing stable, long-term merchant accounts with features like chargeback prevention and fraud protection. Their expertise lies in understanding the risk factors of different industries and matching them with the right banking partner.

How High-Risk Gateway Pricing Works

Let’s talk about money. When you’re running a high-risk business, the pricing for your payment gateway will look a bit different from a standard one. It’s not just about a simple transaction fee; there are several components you need to understand to get a clear picture of your costs. Think of it less as a penalty and more as a reflection of the specialized support and security you’re getting. Processors that work with high-risk industries take on more financial liability, and their pricing reflects that reality.

The key is to go in with your eyes wide open. Knowing what to expect helps you budget accurately and avoid any unwelcome surprises down the road. From processing rates and monthly fees to things like rolling reserves, each element plays a role in your overall cost. We’ll break down each of these pieces so you can confidently evaluate different providers and find a partner whose pricing is transparent and fair. Understanding these details is the first step toward building a stable and predictable payment infrastructure for your business. It’s about finding a partner who is upfront about their costs and invested in your long-term success, not just processing transactions.

Decode Processing Rates and Fees

The most visible cost is the processing rate—the percentage you pay on each transaction. For high-risk accounts, these rates are typically higher, often ranging from 2.9% to 6%. But don’t stop there. Ask for a full schedule of fees. Are there additional charges for cross-border transactions, different card types, or refunds? A transparent provider will give you a clear breakdown of every potential fee associated with a transaction, so you know exactly what you’re paying for. This clarity is crucial for managing your margins effectively and forecasting your expenses without any guesswork.

Know Your Setup and Monthly Charges

Beyond per-transaction fees, most high-risk gateways have other standard charges. You might encounter a one-time setup fee to get your account established and a recurring monthly fee for account maintenance and access to the gateway’s features. These fees cover the provider’s initial underwriting process and ongoing monitoring, which are more intensive for high-risk businesses. While these costs are standard, they can vary between providers, so be sure to compare them when you’re shopping for a solution. It’s all part of the investment in a secure and reliable processing relationship.

Rolling Reserves, Explained

The term ‘rolling reserve’ can sound intimidating, but it’s a standard practice in high-risk processing. Think of it as a safety net. Your processor will hold back a small percentage of your revenue for a set period to cover potential chargebacks or refunds. This protects both you and the processor from financial risk. While it does impact your immediate cash flow, a rolling reserve is a sign of a responsible payment processor. A good partner will be transparent about their reserve policy, including the percentage held and the holding period, so you can plan your finances accordingly.

Key Contract Terms to Review

Your merchant agreement is more than just a formality—it’s a critical document. Before you sign anything, read the contract carefully. Pay close attention to the contract length, any early termination fees, and the dispute resolution process. Make sure all the fees you discussed are clearly listed. If anything is unclear, ask for clarification in writing. Some business owners even have a lawyer review the agreement. Taking the time to understand your contract upfront prevents major headaches later and ensures your partnership starts on solid, transparent ground.

How to Choose the Right Payment Gateway

Finding the right payment gateway is more than just a technical decision—it’s about finding a partner who understands the unique challenges of your industry. For a high-risk business, this choice is even more critical. The right gateway provides the stability and security you need to operate confidently, while the wrong one can lead to frozen funds, rejected payments, and endless headaches that stall your growth. It’s easy to get caught up comparing transaction fees, but the real value lies in a provider’s ability to support your business long-term. Think of it this way: you’re not just buying a piece of software; you’re building a relationship with a team that will be instrumental to your financial operations. A great partner will offer tailored solutions, proactive support, and the kind of industry expertise that helps you anticipate problems before they happen. To make the best choice, you need to look beyond the surface-level costs and evaluate how a provider will protect your revenue, manage risk, and scale with you. Let’s walk through the key steps to finding a payment gateway that truly has your back.

Evaluate Your Business Needs

Before you start comparing providers, take a moment to outline exactly what your business needs. Are you planning to expand internationally soon? Do you need a system that can handle a high volume of transactions without flagging them? Look for a provider with proven expertise in your specific industry. A partner who understands your business model will offer better support and more tailored solutions. When you’re vetting options, ask about their client support, security features, and how they can scale with you. Finding the right high-risk merchant account means matching their strengths to your long-term goals.

Check for Key Compliance Certifications

Protecting your customers’ sensitive data is non-negotiable. Your payment gateway is on the front lines of this effort, so it must meet the highest security standards. The most important certification to look for is PCI DSS compliance. This is the industry-wide standard for ensuring that credit card information is processed, stored, and transmitted in a secure environment. A gateway that is PCI DSS compliant uses powerful tools like encryption to keep financial data safe from breaches. Don’t just take their word for it—confirm their compliance level and make sure they prioritize security in every part of their service.

Assess Their Risk Management Tools

For high-risk businesses, managing risk is a daily reality. A great payment gateway does more than just process payments; it helps you protect them. Look for a provider that offers a strong suite of risk management tools. This includes advanced fraud detection that can spot suspicious transactions before they become a problem and robust systems for managing chargebacks. The best gateways provide early warnings for potential chargebacks, giving you a chance to resolve disputes before they impact your account standing. These tools are your safety net, helping you keep your revenue secure and your merchant account in good health.

Prepare Your Documentation

Getting approved for a high-risk merchant account involves a thorough underwriting process. Processors need to verify that your business is legitimate and stable, so be prepared to provide detailed documentation. This can include your business license, financial statements, processing history, and supplier agreements. The processor will look closely at your business model and may monitor your transactions regularly. They might also require a “rolling reserve,” which is a percentage of your revenue held temporarily to cover potential chargebacks. It’s a standard practice in high-risk processing that acts as a safety net for both you and the processor.

Understand the Implementation Process

A smooth checkout experience is essential for keeping customers happy and sales flowing. Your payment gateway should integrate seamlessly with your website and accept all the popular payment methods your customers prefer, from major credit cards to digital wallets like Apple Pay and “buy now, pay later” services. If you sell to a global audience, check that the gateway supports multi-currency transactions and popular regional payment options. Ask about the technical side of implementation, too. A straightforward integration process with clear instructions and helpful support will get you up and running much faster.

Taking Your Business Global

Expanding your business to international markets is an exciting step, but it introduces a new layer of complexity to your payments. Customers around the world have different expectations for how they shop and pay online. The right payment gateway doesn’t just process transactions; it helps you create a seamless and localized experience for every customer, no matter where they are. This builds trust and makes it easier for you to grow your global footprint.

Accept Multiple Currencies

One of the quickest ways to lose an international sale is by forcing a customer to pay in a foreign currency. Displaying prices and accepting payments in a customer’s local currency makes them feel more comfortable and confident in their purchase. A great high-risk payment gateway will handle currency conversions automatically, so you can sell in multiple currencies without needing to manage separate bank accounts or worry about fluctuating exchange rates. This simple feature shows customers you’re serious about serving their market and can significantly improve your conversion rates.

Simplify Cross-Border Transactions

Moving money across borders can be complicated, with different banking systems, regulations, and fees to consider. A payment gateway built for global commerce simplifies these cross-border transactions by acting as a bridge between international banks. It ensures that payments are routed efficiently and securely, regardless of where your customer is located. Look for a provider that offers both a gateway and a merchant account together and integrates smoothly with major e-commerce platforms. This unified approach removes major operational headaches and lets you focus on growing your business, not managing payment logistics.

Meet Global Compliance Standards

When you sell internationally, you become subject to a web of global regulations, from data privacy laws like GDPR to country-specific financial rules. For high-risk businesses, adhering to these standards is non-negotiable. A specialized payment gateway is designed to help you meet global compliance standards by providing secure, certified payment infrastructure. This is one of the main reasons why specialized gateways are often the only reliable option for high-risk industries—they provide the framework you need to operate safely and legally in different markets, protecting you from potential fines and penalties.

Offer Regional Payment Methods

Credit cards are popular, but they aren’t the only way people pay. In many parts of the world, customers prefer using local payment options, such as bank transfers, digital wallets, or country-specific methods like iDEAL in the Netherlands or Boleto in Brazil. Offering these familiar regional payment methods can dramatically increase your sales in new markets. A payment partner that understands global commerce will support a wide range of these options, allowing you to create a truly localized checkout experience that meets your customers’ expectations and builds lasting trust.

Smart Ways to Manage Payment Risk

Getting your high-risk merchant account is just the first step. The real work is in managing it effectively to ensure long-term stability and growth. Proactive risk management isn’t about being restrictive; it’s about creating a secure environment where your business can thrive without the constant threat of account holds or closures. By partnering with the right payment gateway and adopting smart practices, you can protect your revenue, reduce headaches, and build a resilient payment infrastructure. Let’s walk through the key strategies that make a real difference.

Implement Strong Fraud Prevention

Fraud is a major reason businesses land in the high-risk category, so tackling it head-on is non-negotiable. Your payment gateway should be your first line of defense. Many high-risk processors offer advanced tools designed to spot and stop fraudulent transactions before they can cause damage. These systems go beyond basic checks, using tools like Address Verification Service (AVS), CVV verification, and IP geolocation to flag suspicious orders. Some even use machine learning to detect unusual patterns. By using these fraud prevention tools, you can significantly lower your risk of chargebacks and protect your bottom line. Think of it as a digital security guard for your checkout page.

Reduce and Manage Chargebacks

Chargebacks are more than just lost sales; too many can put your entire merchant account in jeopardy. The key is a two-part strategy: prevention and management. First, prevent disputes by providing excellent customer service, writing clear billing descriptors (so customers recognize the charge on their statement), and being transparent about your policies. Second, when a chargeback does happen, you need the right tools to handle it. Look for a payment gateway that provides real-time chargeback alerts and a straightforward system for submitting evidence. This helps you resolve disputes efficiently and demonstrates to your processor that you are actively managing your account health.

Monitor Your Transactions

As a high-risk merchant, your transaction patterns will be under a microscope—both yours and your processor’s. This is a good thing. Your processor will look closely at your business and might watch your transactions regularly to catch red flags early. You should be doing the same. Keep an eye on your sales data for anything unusual, like a sudden spike in orders from a new location or multiple failed attempts from one customer. To manage their own risk, processors sometimes hold a portion of your funds in a rolling reserve. While it can affect cash flow, it also serves as a safety net, protecting both you and the processor from unexpected losses from chargebacks.

Build Long-Term Processing Stability

Finding a payment gateway that will approve you is one thing; finding one that will support you for the long haul is another. True stability comes from a partnership with a provider that genuinely understands your industry. They won’t be spooked by your business model because they’re equipped to handle its specific risks. When you choose a provider that offers dedicated support and tailored solutions, you can focus on running your business instead of worrying about payment issues. They should feel like an extension of your team, helping you remove payment friction and get you selling quickly and securely, setting you up for sustainable growth.

Find a Partner That Grows With You

Choosing a high-risk payment gateway isn’t just about solving an immediate problem; it’s about finding a long-term partner who can support your business as it evolves. The right provider won’t just get you approved—they’ll offer the infrastructure and expertise you need to thrive for years to come. As your transaction volume increases, your product lines expand, or you venture into new markets, you need a payment solution that can keep up without causing disruptions. A forward-thinking partner anticipates your needs and provides a stable foundation, so you can focus on your vision instead of your payment processing.

Look for Scalable Features

Your business today won’t be the same business it is next year. A payment gateway that works for a startup might not handle the demands of a rapidly growing company. Look for a provider whose services are designed for scalability. Can their system handle a sudden spike in sales without crashing? Do they offer features like multi-currency processing that you can activate when you’re ready to sell internationally? A scalable partner provides a flexible framework that adapts to your transaction volume and business goals, ensuring you never outgrow your payment infrastructure.

Plan for Future Tech Integrations

Your payment gateway is just one piece of your operational puzzle. It needs to communicate seamlessly with the other tools you rely on, from your ecommerce platform to your accounting software. Before committing to a provider, map out your current and future tech stack. The best gateways offer robust APIs and pre-built integrations that make it easy to connect your systems. This creates a more efficient workflow, reduces manual data entry, and gives you a clearer picture of your business performance. A partner who prioritizes smooth integrations helps you build a connected and automated business.

Stay Ahead of Regulatory Changes

High-risk industries are often subject to complex and shifting regulations. A payment partner who understands this landscape is invaluable. They should do more than just process transactions; they should provide expert regulatory guidance to help you stay compliant. This is especially critical if you operate across different countries, where rules can vary significantly. Your provider should be proactive, keeping you informed of changes that could impact your business and offering tools to help you adapt. This level of support protects your business from fines and interruptions, giving you peace of mind.

Choose a Future-Ready Solution

Ultimately, you want a partner who is invested in your success. This means choosing a provider that deeply understands your industry’s unique challenges and opportunities. They should offer more than just technology; they should provide dedicated, human support from experts who can help you solve problems quickly. A future-ready solution is one that combines reliable technology with a supportive partnership. By selecting a provider that is committed to your growth, you can build a resilient payment strategy that supports your business now and wherever you decide to take it next.

Frequently Asked Questions

Why is my business considered high-risk even though it’s perfectly legal? This is a super common question, and it’s important to know that the “high-risk” label isn’t a reflection of your business’s integrity. It’s a financial classification that banks and processors use based on statistics. Industries are often flagged due to a higher likelihood of chargebacks, complex regulations, or high-ticket sales. Think of it as an insurance category—it’s all about the processor managing their financial exposure, not about judging your business model.

What’s the biggest red flag to watch out for when choosing a high-risk processor? The biggest red flag is a lack of transparency. If a provider is vague about their fees, won’t give you a clear contract to review, or seems to gloss over the details of their chargeback and fraud tools, you should be cautious. A true partner will be upfront about all costs and terms because they want to build a long-term relationship. Vague promises and hidden fees are signs of a processor that isn’t invested in your success.

Will I ever get the money from my rolling reserve back? Yes, you will. A rolling reserve can feel a bit alarming, but it functions like a security deposit. The processor holds a small percentage of your revenue for a predetermined period to cover any potential chargebacks. Once that holding period is over and the transactions are cleared, the funds are released back to your account. A reputable provider will clearly outline the reserve percentage and holding period in your contract so you know exactly what to expect.

How can I speed up the approval process for a high-risk merchant account? The best way to streamline your approval is to be prepared. Before you even apply, gather all of your essential documents—this includes your business license, recent financial statements or bank statements, and any previous payment processing history. Having everything organized and ready to go shows the processor that you’re a serious, well-managed business, which can make the underwriting process much smoother and faster.

Can my account still be terminated even if I’m with a high-risk specialist? While it’s far less likely than with a standard processor, termination is still possible if you violate the terms of your merchant agreement, such as exceeding the agreed-upon chargeback threshold. This is why it’s so crucial to view your processor as a partner. A good high-risk specialist will provide the tools and support to help you manage chargebacks and stay compliant, making account closure a rare occurrence. The goal is to work together to maintain a healthy account for the long haul.

5 Best Payment Gateways for Hard-to-Place Merchants