7 High-Risk Merchant Accounts to Use Instead of Stripe

That sinking feeling when you see an email from Stripe with the subject line “Account Update” is something no business owner should have to experience. For many in industries like crypto, subscription services, or online gaming, it’s a constant worry. The truth is, Stripe is an excellent tool for low-risk businesses, but its automated systems weren’t designed for your industry’s complexities. This can lead to sudden account freezes, held funds, and a lot of stress. If this sounds familiar, it’s not your fault—it’s a sign you need a payment partner who understands your business model. This guide is for you. We’ll show you why finding a dedicated high risk merchant account instead of Stripe is the key to stability and long-term growth.

Key Takeaways

Outgrow Generic Processors for Long-Term Stability: While platforms like Stripe are easy to start with, they aren’t equipped for high-risk industries and can lead to sudden account freezes. A dedicated high-risk account is a necessary upgrade to secure your revenue and ensure uninterrupted operations.
See Higher Fees as an Investment in Security: The costs of a high-risk account fund the advanced fraud prevention and expert chargeback support that protect your business. This investment provides the stability and security that standard, low-cost processors simply cannot offer.
Find a Partner That Supports Your Growth: The right provider does more than just process payments. Prioritize partners with proven expertise in your specific industry, transparent contracts, and the technical ability to handle international sales and integrate with your essential software.

What Is a High-Risk Merchant Account?

Let’s start with the basics. A high-risk merchant account is a specialized payment processing account for businesses that operate in industries with a greater likelihood of chargebacks or fraud. It’s not a judgment on your business practices; it’s a classification based on the statistical risk associated with your industry. Think of it this way: traditional payment processors and banks prefer to work with businesses that have predictable sales patterns and low return rates, like a local coffee shop.

If your business model involves subscription billing, high-value transactions, or operates in a heavily regulated field, you’ll likely be labeled “high-risk.” This means standard processors might see you as a bigger financial gamble. As a result, high-risk accounts come with stricter terms and often have higher fees. This isn’t to penalize you—it’s how these specialized providers protect themselves while giving your business a stable way to accept payments. Without them, many legitimate businesses in essential industries would struggle to process transactions online.

How High-Risk Accounts Differ from Stripe

Many business owners start with a mainstream processor like Stripe because it’s fast and easy to set up. The problem is, Stripe’s automated system isn’t built to handle the complexities of high-risk industries. It’s common for businesses in fields like crypto, online gaming, or nutraceuticals to experience sudden account freezes, held funds, and even termination with little explanation. This happens because their business model triggers red flags in a system designed for low-risk merchants.

This is where a dedicated high-risk provider changes the game. Unlike Stripe, they have underwriting processes specifically designed to understand your business. They expect high ticket sales or recurring billing. They know the ins and outs of your industry’s regulations. Because they specialize, providers that focus on high-risk businesses are a much safer bet for long-term stability. They become a partner in your growth instead of an obstacle.

Which Industries Are Considered High-Risk?

The “high-risk” label can apply to a wide range of industries for different reasons, from regulatory oversight to high chargeback ratios. If your business falls into one of these categories, you’ll almost certainly need a specialized merchant account to ensure your payments keep flowing smoothly.

Here are some of the most common high-risk industries:

Adult entertainment and products
Cryptocurrency and forex trading
Online gambling, casinos, and gaming
Pharmaceuticals, nutraceuticals, and supplements
Tobacco, vape, and CBD products
Travel, tourism, and event bookings
Subscription boxes and recurring billing models
Telemarketing and telecommunications
Financial services like debt collection or credit repair
High-value items like jewelry or electronics

Is Stripe Holding Your Business Back?

Stripe is often the first payment processor businesses turn to. It’s easy to set up, the interface is clean, and it works for a lot of standard online stores. But if you’re in an industry considered high-risk—like crypto, gaming, or subscription services—what starts as a simple solution can quickly become a major roadblock. The very systems that make Stripe efficient for low-risk businesses can become a liability for you.

When your business model doesn’t fit neatly into their standard-risk box, you risk sudden account freezes, held funds, and vague explanations. It’s not personal; it’s just that their platform wasn’t built with your industry’s complexities in mind. Instead of supporting your growth, a generic processor can end up limiting it.

Where Stripe Falls Short for High-Risk Businesses

For many high-risk businesses, the relationship with Stripe starts out fine but ends with a sudden account closure. Because Stripe is a payment aggregator, it groups all its merchants into one large account. This means you have less individual control, and their automated risk-detection systems can flag and shut down your account without warning. This is a common issue for businesses in industries like forex, adult content, and online gaming.

Processors like Stripe, Square, and PayPal don’t specialize in high-risk accounts, which makes them inherently risky for those businesses. They might hold a significant portion of your revenue in a rolling reserve or terminate your account altogether, leaving you scrambling to find a new payment solution.

Signs It’s Time for a Specialized Processor

How do you know when you’ve outgrown a generic processor? The signs are usually clear, and ignoring them can put your revenue at risk. It’s time to look for a specialized high-risk processor if you’re experiencing any of these issues.

Your account has been flagged or frozen multiple times, you’re dealing with a high volume of chargebacks, or you’ve simply been told your business is too high-risk. Another key indicator is growth. If you’re consistently processing over $50,000 a month or have plans to expand internationally, you need a payment partner who can scale with you and handle multi-currency transactions without a hitch. A specialized processor is built to support this kind of growth, not penalize you for it.

Common Myths About High-Risk Accounts, Debunked

The term “high-risk” can sound intimidating, and it’s surrounded by a few persistent myths. The biggest one is that it means your business is somehow illegitimate or untrustworthy. In reality, being labeled high-risk is simply an industry classification based on factors like chargeback ratios, business model, or average transaction value. It’s a technical term, not a judgment on your business’s quality.

Another common myth is that high-risk accounts are always prohibitively expensive. While high-risk merchant accounts can have different fee structures, the cheapest option isn’t the best one if it leaves you vulnerable to frozen funds. A good provider offers stability and features that protect your revenue, making it a worthwhile investment in your business’s long-term health.

7 Best High-Risk Merchant Accounts to Use Instead of Stripe

If you’ve discovered that Stripe isn’t the right fit for your business, don’t worry—you have plenty of excellent alternatives. The world of high-risk payment processing is filled with providers who specialize in the very industries that standard processors turn away. These companies understand the nuances of your business model and have built their platforms to handle the complexities that come with it, from managing chargebacks to working with global regulations.

Finding the right partner is about matching a provider’s strengths to your specific needs. Some processors excel at serving brand-new businesses, while others are equipped for high-volume international sales. Some offer rock-bottom rates, while others provide white-glove support and advanced fraud protection that justifies a higher price tag. We’ve rounded up seven of the best high-risk merchant accounts to help you find a payment solution that not only accepts your business but helps it grow.

1. Borderfree Payments

Borderfree Payments is designed from the ground up to be a growth partner for high-risk businesses. Instead of offering a one-size-fits-all solution, we provide tailored payment infrastructure that aligns with your specific industry and goals. Our focus is on creating secure, compliant, and completely reliable payment flows, so you never have to worry about sudden account freezes. With robust fraud prevention tools, multi-currency support for global sales, and expert guidance on complex regulations, we remove the payment barriers that can hold high-risk merchants back. We’re here to provide a stable, long-term solution that scales with you.

2. National Processing

National Processing is a strong all-around choice, especially for businesses looking for value and stability. They are known for their proactive approach to monitoring chargebacks, helping you keep your dispute ratio low. One of their most popular perks is providing free startup equipment, which can save you a significant upfront cost when you’re getting started. According to Forbes Advisor, this combination of features and active support makes them a solid contender for many high-risk businesses that need a reliable processor without breaking the bank.

3. PaymentCloud

If top-notch customer support and seamless software integrations are high on your list, PaymentCloud is worth a look. They have a reputation for being incredibly helpful and responsive, guiding merchants through every step of the setup process. PaymentCloud connects with a wide array of business tools, making it easy to fit into your existing workflow. They also offer an interesting “zero-cost credit card processing” option, which allows you to pass processing fees to the customer. As part of that plan, they often provide a free credit card reader, making it an attractive choice for businesses with in-person sales.

4. Durango Merchant Services

For businesses in the highest-risk categories, Durango Merchant Services is an industry veteran. They have a long history of serving merchants that others won’t touch, including industries like bail bonds, gaming, firearms, and even fortune-telling. Their expertise in these areas means they come prepared with powerful fraud protection tools designed for high-stakes transactions. They are also forward-thinking, offering merchants the ability to accept cryptocurrency alongside traditional payments. If your business operates in a particularly challenging niche, Durango’s specialized experience is a major advantage.

5. eMerchantBroker

eMerchantBroker (EMB) has built a strong reputation for its high approval rates and its willingness to work with a diverse range of high-risk industries. They are known for finding solutions for merchants who have been denied elsewhere, making them a go-to for businesses that are hard to place. EMB offers a full suite of services, including chargeback prevention programs and a secure payment gateway. Their experience means they understand the common pain points for high-risk merchants and have developed services specifically to address them, providing a reliable and understanding partnership.

6. High Risk Pay

If you need to get up and running quickly and affordably, High Risk Pay is a fantastic option. They boast an impressive 99% approval rate, which means you can secure an account with minimal hassle. Their fee structure is also very appealing, featuring a low monthly fee and competitive rates for in-person transactions. This straightforward pricing makes it easier to predict your monthly costs. For new businesses or those wanting to avoid a lengthy and uncertain application process, High Risk Pay offers a fast and accessible path to accepting payments.

7. PayKings

PayKings stands out for its dedicated focus on preventing and managing chargebacks—a critical concern for any high-risk business. They provide merchants with alerts and sophisticated tools to stop disputes before they happen. According to Technology Advice, their smart fraud protection is a key feature. Perhaps most importantly, PayKings is known for working with businesses on the MATCH list (Member Alert to Control High-Risk Merchants). Getting on this list can make it nearly impossible to get an account, so having a provider willing to work with you is a huge lifeline.

Breaking Down the Costs: High-Risk Accounts vs. Stripe

Let’s talk about the money side of things. It’s easy to look at the pricing for a high-risk merchant account and compare it to Stripe’s seemingly straightforward fees, but that’s not the full picture. While high-risk accounts often have higher baseline fees, they provide something far more valuable for your business: stability. The real cost of using a standard processor like Stripe in a high-risk industry isn’t just the transaction fee—it’s the risk of a sudden account freeze, held funds, or outright termination with little to no warning.

When your revenue stream is cut off, those few percentage points you saved on processing fees become meaningless. A specialized high-risk provider prices its services to account for the risks associated with your industry, which means they are equipped to support you for the long haul. They won’t get spooked by a sudden spike in sales or a higher-than-average chargeback rate. Think of it as an investment in your business’s continuity and peace of mind. Instead of just comparing percentages, it’s important to understand what you’re paying for and why those costs exist. Let’s break down the specific fees you can expect.

Understanding Transaction Fees and Processing Rates

The most noticeable difference you’ll see is in the transaction fees. While standard processors might offer a flat rate, high-risk merchant account service providers have rates that reflect the level of risk they’re taking on. You can generally expect transaction fees to be a bit higher than what you’d see with a low-risk account.

This higher rate isn’t arbitrary; it helps the processor manage the increased likelihood of chargebacks and fraud common in industries like gaming, crypto, or subscription services. It’s the cost of having a payment partner who understands your business model and won’t pull the plug when you start scaling. Instead of a one-size-fits-all fee, you get a rate tailored to your specific industry and business needs.

What to Expect for Monthly Fees, Setup Costs, and Reserves

Beyond transaction rates, there are a few other costs to anticipate with high-risk merchant accounts. Most providers charge a monthly fee for account maintenance, which typically falls in a reasonable range. Some may also have a one-time setup fee to get your account integrated and running.

You might also encounter a “reserve.” A reserve is when the processor holds a percentage of your revenue for a short period to cover potential chargebacks. It’s like a security deposit that protects both you and the processor from financial loss. While it can affect your cash flow initially, it’s a standard practice in high-risk processing that demonstrates your provider is actively managing risk, which ultimately helps keep your account healthy and active.

How to Spot Hidden Fees in Your Contract

When you’re reviewing an agreement, your goal is to find a partner who is upfront about their pricing. It’s crucial to read your contract carefully and ask questions about any charges you don’t understand. Some providers might try to sneak in unexpected costs like high PCI compliance fees, batch fees, or steep early termination fees that lock you into a long-term commitment.

Look for a provider who clearly explains all potential costs. Even platforms like Stripe acknowledge the importance of watching out for hidden fees when choosing a processor. Ideally, you want a partner who offers transparent pricing and flexible, month-to-month contract terms. This gives you the freedom to make sure the relationship is a good fit without being penalized if you decide to switch.

Why High-Risk Accounts Are Better at Fighting Fraud and Chargebacks

If you’re in a high-risk industry, you know that fraud and chargebacks aren’t just occasional annoyances—they’re a constant threat to your bottom line. Standard payment processors like Stripe offer a one-size-fits-all approach to security that often leaves high-risk businesses exposed. A specialized high-risk merchant account, on the other hand, is built from the ground up to manage these specific threats. It’s like having a security detail that’s been trained to protect your exact type of business, giving you a much stronger defense against financial losses.

A Look at Smarter Fraud Prevention Tools

High-risk merchant accounts come equipped with sophisticated fraud prevention systems designed for the unique challenges you face. Instead of basic filters, these platforms use advanced technology like machine learning algorithms to analyze transaction patterns in real time. They can spot suspicious activity that a standard system might miss, flagging potentially fraudulent orders before they’re even processed. This proactive approach means you have strong fraud protection tools that learn and adapt, providing a more intelligent and robust defense against evolving fraud tactics. It’s a level of security that’s tailored to the realities of your industry.

How to Reduce Chargebacks and Win Disputes

Chargebacks can feel like an uphill battle, but a high-risk account gives you the tools to fight back effectively. These providers help you prevent disputes before they start with features like real-time transaction monitoring and alerts. When a dispute does occur, they offer streamlined processes to manage it. More importantly, providers that specialize in high-risk industries understand the specific reasons chargebacks happen in your field. They know the nuances of dispute resolution and are better equipped to help you win. This makes them a safer bet because they’re invested in your success and are far less likely to terminate your account over a few disputes.

Getting Security That’s Built for Your Industry

Generic security just doesn’t cut it when your business has specific vulnerabilities. The best high-risk providers know your industry inside and out. They understand the common fraud schemes targeting businesses like yours and build security protocols to counter them directly. This industry-specific expertise is invaluable. Beyond the technology, many of these providers offer dedicated support from a team that understands your business. Having an expert you can call—someone who can guide you through setup and help you manage risk—makes all the difference. It’s a partnership designed to keep your payments secure and your business growing.

What to Look for in a High-Risk Merchant Account

Once you start exploring alternatives to Stripe, you’ll find that not all high-risk merchant accounts are built the same. The goal isn’t just to find a processor that will approve you; it’s to find a true partner who understands your business and can help you grow safely. Think of this as a checklist for vetting potential providers. The right account should do more than just move money—it should offer the tools, support, and expertise to protect your revenue and open up new opportunities.

Choosing a processor is a major business decision, so it pays to be thorough. A provider might have low rates, but do they offer the fraud tools you need? They might have a flashy website, but is their customer support team available when you actually need them? Asking the right questions upfront will save you from headaches down the road and ensure you partner with a company that’s invested in your success. The following criteria will help you separate the basic processors from the ones that can truly support a high-risk business.

Does It Support Multiple Currencies and International Sales?

If you have any ambition to sell outside your home country, this is a must-have. A processor that handles multiple currencies allows you to sell to customers in their local currency, which can significantly improve trust and conversion rates. When shoppers see prices they understand, they’re more likely to complete a purchase. This capability is fundamental for any business looking to build a global customer base. Don’t limit your growth potential by choosing a provider that can only process domestic payments. Ask potential partners about their solutions for cross-border commerce and which currencies they support.

Check for Key Integrations and Technical Support

Your payment processor needs to play well with the other tools you use to run your business. Before you commit, make sure the provider offers seamless integrations with your ecommerce platform, accounting software, and any other critical systems. Whether you use Shopify, WooCommerce, or a custom-built site, a smooth integration prevents data silos and manual work. Equally important is the quality of their technical support. When a payment issue arises, you need access to a knowledgeable human who can resolve it quickly—not an endless phone tree or a 48-hour ticket response time. A provider with robust support is a sign they value your business.

Find a Provider with Real Industry Expertise

A one-size-fits-all approach to payment processing simply doesn’t work for high-risk industries. A provider who specializes in your specific field—whether it’s CBD, subscription boxes, or travel—will understand your unique challenges. They’ll be familiar with the regulations, chargeback risks, and customer behaviors common to your industry. This expertise translates into better fraud prevention, more effective dispute management, and underwriting that actually understands your business model. A partner with industry-specific knowledge can offer tailored advice and solutions that a generalist processor like Stripe simply can’t provide.

Ensure It Meets Compliance and Regulatory Standards

This is non-negotiable. Any payment processor you consider must be fully compliant with the Payment Card Industry Data Security Standard (PCI DSS). This is the global standard for protecting sensitive cardholder data from fraud and security breaches. Compliance isn’t just about checking a box; it’s about protecting your customers and your business from devastating data theft and financial penalties. Ask any potential provider to provide their proof of PCI DSS compliance. If they are hesitant or vague, walk away. Your customers’ trust and your business’s reputation depend on it.

How to Choose the Right High-Risk Provider for Your Business

Finding the right payment partner is one of the most important decisions you’ll make for your business. It’s not just about accepting payments; it’s about finding a provider who understands your industry, supports your growth, and won’t leave you in the lurch. For a high-risk business, this choice is even more critical. The wrong partner can mean frozen funds, surprise account closures, and a constant state of uncertainty that stifles your ability to plan for the future. The right one, however, becomes a true ally, providing the stability and tools you need to thrive in a competitive market.

So, how do you tell the difference between a provider that just wants your business and one that truly wants to support it? It comes down to asking the right questions and knowing what to look for. This isn’t the time to skim the fine print or go with the first provider that says yes. You need to get into the details of their reputation, their pricing structure, and their operational capabilities. Think of it like hiring a key team member. You want someone who is reliable, transparent, and genuinely invested in your success. A little due diligence now can save you from major headaches down the road. In the following sections, we’ll walk through exactly what to evaluate to make sure you’re choosing a partner that will help your business grow securely, from checking their track record to confirming they can handle your volume as you scale.

Evaluate Their Reputation and Track Record

Before you sign any contracts, do some digging into the provider’s history. You want a partner who has a proven track record of working with businesses like yours. A generic processor won’t understand the specific challenges and regulations of the CBD, gaming, or subscription box industries. Look for a provider who proudly showcases their industry expertise.

Don’t just take their word for it. Check third-party review sites, forums, and testimonials to see what other merchants are saying about their experience. A reputable provider should be able to connect you with case studies or references from businesses in your niche. This is your chance to hear directly from people who have been in your shoes.

Demand Transparent Pricing and Fair Contract Terms

Pricing in the high-risk space can be complex, but it should never be a mystery. A trustworthy provider will be upfront about all their costs, with no hidden fees lurking in the fine print. Ask for a complete fee schedule that clearly explains transaction rates, monthly fees, chargeback fees, and any other potential charges. If a provider is cagey about their pricing, consider it a major red flag.

Pay close attention to the contract terms. Avoid getting locked into a long-term agreement with steep early termination fees. Many of the best high-risk providers offer more flexible month-to-month options. This shows they’re confident in their ability to earn your business every month, rather than trapping you in a restrictive contract.

Confirm Their Approval Requirements and Processing Limits

The application process for a high-risk account is more involved than with a standard processor, so it’s best to be prepared. Most providers will ask for documents like business licenses, recent financial statements, bank statements, and a clear business plan. Having these items ready will make the underwriting process much smoother.

Look for a provider that offers dedicated support from the very beginning. Having an account manager to guide you through the application and setup can make a world of difference. You should also discuss processing limits upfront. Make sure the provider can handle your current sales volume and has a clear path for increasing your limits as your business grows. You need a partner who can scale with you, not hold you back.

Your Step-by-Step Guide to Switching from Stripe

Making the switch from a general processor like Stripe to a specialized high-risk provider might feel like a big move, but it’s a straightforward process when you know what to expect. Think of it less as starting over and more as upgrading to a system built to support your growth. Breaking it down into a few key phases helps you prepare for a smooth and successful transition. It’s all about getting your information organized, understanding the review process, and integrating your new partner into your workflow.

Get Your Documents in Order First

The best way to speed up your application is to have all your paperwork ready before you even start. High-risk processors need a complete picture of your business to offer you the best terms and ensure a stable partnership. It’s their way of doing due diligence to protect both you and them. Before you apply, gather key documents like your business licenses, recent financial and bank statements, and a clear business plan. Having these files organized and on hand shows that you’re a serious, well-managed business and makes the underwriting process much faster. It’s the first step in building a foundation of trust with your new payment partner.

What to Expect from the Application and Approval Process

Unlike Stripe’s often-automated onboarding, applying for a high-risk merchant account involves a more personal and detailed review. This is actually a good thing. It means a real person is analyzing your business to understand its unique needs and risks. While the underwriting process is stricter, it’s designed to set you up for long-term success, not to catch you out. Be prepared for the provider to ask questions about your business model, sales volume, and chargeback history. Honesty and transparency here are key. This thorough vetting ensures that once you’re approved, you have a reliable partner who won’t suddenly freeze your account when your business starts to scale.

Go Live with Your New Payment Processor

Once you’re approved, it’s time to integrate your new payment processor and go live. A great provider will make this final step as seamless as possible. Before you commit, confirm that their system integrates smoothly with your existing tools, whether it’s your e-commerce platform, accounting software, or inventory management system. Your new partner should offer clear instructions and technical support to help you connect everything. This is where you’ll start to see the real benefits of a specialized solution—from accepting multiple currencies to using advanced fraud prevention tools. A dedicated support team can help you get everything running perfectly so you can focus on what you do best: running your business.

Frequently Asked Questions

Does being labeled ‘high-risk’ mean my business is doing something wrong? Not at all. Think of “high-risk” as a technical term used by payment processors, not a judgment on your business’s quality or integrity. It’s an industry classification based on statistical factors. Your business might be in this category because it uses a subscription model, has a higher-than-average chargeback rate, or operates in a field with complex regulations. A specialized provider understands these factors are just part of your business model and won’t penalize you for them.

Are high-risk merchant accounts always more expensive than Stripe? While some fees might look higher on paper, it’s important to consider the total cost of doing business. The real expense of using a standard processor like Stripe is the risk of having your funds frozen or your account shut down without warning. A high-risk provider‘s pricing reflects the stability and specialized support they offer. You’re paying for a reliable partner who understands your industry and won’t pull the plug when you start to grow, which is an investment that protects your revenue in the long run.

How difficult is it to switch from Stripe to a high-risk provider? Making the switch is more straightforward than you might think, and a good provider will guide you through the entire process. The key is preparation. Before you apply, gather your essential business documents, like bank statements and licenses. The application itself is more detailed than Stripe’s because a real person is taking the time to understand your business. This thorough review ensures they can support you properly once you’re approved, making for a much more stable partnership.

What happens if I get a lot of chargebacks? Will a high-risk provider shut me down? This is exactly where a specialized provider proves its worth. Unlike standard processors that might automatically flag and close your account for a spike in disputes, high-risk providers expect them and are equipped to handle them. They offer advanced tools and expert support to help you manage and reduce your chargeback ratio. Their goal is to work with you as a partner to resolve these issues, not to abandon you at the first sign of trouble.

Can I still get an account if Stripe already terminated mine? Yes, absolutely. This is a very common situation, and it’s one of the main reasons businesses seek out a high-risk specialist. Providers that focus on high-risk industries are accustomed to working with merchants who have been dropped by aggregators like Stripe or PayPal. They have the expertise to underwrite businesses that don’t fit the standard mold and can often provide a solution when others have said no.

7 Best High-Risk Merchant Accounts Instead of Stripe