Running a high risk business offers plenty of opportunities. On one hand, it's an advantageous venture bringing in numerous benefits and, if done by the book, a good profit. On the other hand, the high risk profile could cause some problems and limitations in the long run.
Managing a local high-risk business could be easily done if you deal with cash only. However as you also need to process card payments, you'll need a payment processor. In a world where, more and more people shop online or avoid cash, a payment processor is not a nice thing to have but an actual necessity.
This is where most problems tend to arise. Obtaining a payment processor account can be difficult if your business is deemed high risk. The good news is there are ways around it, as well as businesses only dealing with high risk industries.
This being said, let's check out what makes your business high risk and what you can do to ensure a smooth operation.
The banking industry has never been more complex, while the financial ecosystem spreads in more directions, able to support different businesses in different ways. There are all kinds of small details to pay attention to, and many of them can block your operations if you fail to consider them.
When running a high risk business, the system can be extremely intricate. Some business owners choose to outsource such tasks to different professionals, from bankers to accountants. But then, there are also things you may need to do yourself.
Dealing with high risk payment processing is usually your task. You’ll need to pick a professional service with great reliability and decent rates. It sounds like mission impossible because each service does one or the other, but a little research can push you in the right direction.
Moreover, if handled correctly, payment processing will boost your financial operations and also give you the possibility to attract more customers.
In some jurisdictions or industries, professional payment processing is a legal requirement, too.
But then, what’s high risk payment processing? How do you actually benefit from it?
The concept is fairly simple to understand because it's aimed at businesses in high risk industries, simple as that. Such an account has its own terms and conditions only to handle the operations of such businesses.
In other words, you can forget about taking cash only and dealing locally, as you can also accept card payments to diversify your payment portfolio.
Now, the reasoning behind these accounts is based on some categories defined by the banking industry. Some industries are simply considered to be high-risk, so most banks will refuse to open business bank accounts for them.
From this point of view, businesses can be low or high risk. The risk is defined by the potential issues they can bring to a bank. In theory, banks are protected against too many chargebacks and similar issues. But then, such repetitive challenges are simply too much headache, so most banks avoid them.
For most banking institutions, pretty much the same industries are considered high risk. Of course, there are different factors that can determine the risk of a company, but they don’t seem to change much from one institution to another.
While some businesses go through a comprehensive check before determining the risk status, some others are automatically labeled as soon as they apply for a payment processing option.
Again, the industry you operate in plays a significant role in the process because some industries are automatically rejected.
Sure, you could get accepted if you run a large corporation with an impressive history and even more impressive numbers in terms of profit. But other than that, if you’re not proven yet, chances are you’ll struggle.
Somehow, most banking institutions have added the same industries on their blacklists, showcasing their communication in this field.
Take travel and booking agencies, for example. This is a commission based service or a subscription based service, so chances are the company will be rejected by most processors. Pretty much all subscription based businesses will be in the same situation.
Vitamins and supplements are seen in a similar way. While there are, indeed, many reputable companies in this field, the past few decades have also seen numerous wonder solutions that promised the world. Many of them collapsed before they took off, hence the risks.
The gambling and betting industry has also been affected because there are quite a few question marks around it. Again, there should be no problems for the big players in this industry, but a new business won’t be seen with good eyes.
Online casinos, social networks, adult entertainment, telemarketing, and dating websites and portals go in a similar category.
Things go even further. Alcohol, tobacco and pharmaceuticals are likely to be targeted too. Such industries are too highly regulated by governments, meaning profits are almost inexistent.
CBD products go in the same category. While the CBD industry is still relatively new, there are a few reasons wherefore it's rejected. First, it still requires some regulation despite the laws targeting it at the moment. Second, it's seen as one of those wonder solutions that could fade away after a decade.
A new company in the real estate industry will be affected as well because it's mainly commission-based work. However, even if you flip properties, the profit is less likely to be consistent. Similarly, investment firms might see some issues here, especially since no investment is 100% certain.
It's worth noting that the electronic gaming industry is a problem, too, despite its popularity, not to mention multilevel marketing, an industry that keeps popping up every now and then. Most companies using this business model have collapsed over a relatively short period of time.
The list could be much longer, but for most banking institutions, these industries will most likely require a high risk payment processing provider.
From many points of view, it's pretty obvious why you need to go in this direction. For many companies or industries, a high-risk merchant high-riskpay.com account or similar would be the only solution for card processing.
Unless you’re only dealing with cash, chances are you’ll get stuck. For instance, you can’t do cash only if your business also operates online. If you’re exclusively online, card payments are your only option, as well as some online payment platforms.
Therefore, offering some variety is a massive plus.
Moreover, we live in a world where more and more people rely on virtual money rather than cash. Cards are perfectly normal these days, as a lot of people no longer carry cash. Besides, many companies allow crypto payments as well.
Having this form of accessibility also gives your company credibility. If you only ask for cash, something may smell fishy. It just makes you look more professional.
Not only is it more convenient for your customers, but you’ll also show some credibility.
On top of all these, high risk payment processing providers have some strict rules. Following their rules guarantees a high level of protection while trading.
There’s nothing to worry about when it comes to customers because no one ever cares what payment processor you’re using, whether it’s a high risk one or a general one. As long as you provide a good service or product for a good price, people are happy, simple as that.
There are all sorts of extra anti fraud features, guides and solutions to prevent the most common problems in your industry. Each industry has certain risks, so that's why the payment processor will focus on them.
These kinds of features will prove useful in the long run because they can reduce your risks, but also prevent fraudulent operations.
While high risk payment processors are excellent for giving you the possibility to take card payments and provide your customers with more payment solutions, they do have some drawbacks as well. After all, everything is related to the risk you come with.
The problem is you're considered high risk, and not because of what you do, but because of what others have done before you. A decade ago, dealing with high risk payment processing was nearly mission impossible. Today, there are some options.
You could get a high risk merchant account highriskpay.com, or other similar providers, so at least there's a market based on companies specialized in such industries. Unfortunately, the market is not as comprehensive as you may want it to be.
While there's some improvement in this segment, merchants would like to see more companies. The market is limited, and to ensure there are no sketchy schemes, most of these providers will also require extra documentation and paperwork. After all, that's what high risk means.
For instance, you may have to pay to open such an account once you get approved. Processing will also come with some fees. Offering merchant services will add to the costs, too.
Again, different providers have different fees, hence the necessity of doing a bit of research.
Generally speaking, these higher expenses represent the provider's security. You're exposed to all kinds of expenses, including chargebacks, so the provider tries to adopt some security measures. Talking about chargebacks, their fees could also be higher than normal.
An overflow of these chargebacks can trigger account termination. No matter what financial institution you pick, there’s always this risk based on the chargebacks.
Such issues may affect your account.
Of course, getting an account with a professional service is less likely to cause such issues, but it takes time to check out reviews upfront.
Whether it’s gambling, adult entertainment or CBD, payment processor highriskpay.com is likely to deliver. The company has been around for quite some years now, maintaining integrity and offering a wide variety of services to businesses in need.
If your business is considered high risk by a traditional banking institution, HighRiskPay is actually specialized in your circumstances. Online dating, gaming, pharmaceutical and supplement businesses are also supported.
High Approval
HighRiskPay is mainly known for its high approval rate. It's specialized in businesses with a poor credit or no credit at all, as well as businesses in the high risk industry. The high risk credit card processing highriskpay.com can also help businesses with a history of chargebacks.
Numerous Tools
In order to both reduce its risk and help companies, HighRiskPay also provides access to a wide variety of tools to keep chargebacks under control. It also supports disputes in a professional manner, aiming to conduct its own investigations should any issues around.
Different Payment Gateways
Compared to other high risk payment processing companies, HighRiskPay supports an impressive range of payment gateways. No matter what you’re after, chances are you’ll find it as you explore your account options.
Services
It's extremely important to consider the model of your business prior to opening an account, only to determine whether or not a provider can support it. HighRiskPay provides merchant accounts, recurring billing support, fraud prevention tools, and chargeback protection.
Fees
In terms of fees, the high risk payment processor highriskpay.com has a crystal clear pricing model. You’ll know the setup fee, potential monthly fees or fees associated with transactions at a glance, without any hidden costs.
Similarly, PayAgency is specialized in businesses considered to be part of high risk industries. If you’ve already faced a few rejections from traditional banks, chances are you’re in a blacklisted industry, so you might as well try your luck elsewhere.
From online gaming and electronic commerce to gambling and adult websites, PayAgency offers a series of different accounts. You could take payments in more currencies, but you could also benefit from superior compliance management solutions.
AI Implementation
Compared to other similar companies in this industry, PayAgency has recently implemented a fraud detection algorithm based on artificial intelligence. The algorithm monitors fraudulent activities in real time and aims to prevent them by triggering warning signals.
Available in More Currencies
PayAgency stands out with its multi-currency accounts. It supports just over 150 currencies and allows converting between different currencies in real time, yet it’s important to consider the conversion rate upfront. They’re not far from the market, but still worth a check.
Chargeback Solutions
Chargebacks are some of the most popular issues associated with high risk payment processing, but also the main reason wherefore many traditional banks refuse such industries. PayAgency has automated tools to manage disputes and chargebacks.
While, in theory, it's a good thing, the truth is a human touch is often necessary in such situations. At the moment, high risk merchant highriskpay com offers the best options for disputes and chargeback management.
Regulations and Laws
Worried that you may need to work more to ensure you comply with all the regulations out there? No problem! PayAgency offers a series of tools to make sure you’re compliant with these regulations. From AML and KYC to classic GDPR, you’re covered.
Fees and Rates
Each account is customized in the smallest details. However, in general, PayAgency will charge a setup fee, as well as monthly fees for as long as you need the account. Transaction fees vary widely from one industry to another, depending on the risk.
Overall, pricing is customized and apart from the risk profile, PayAgency also considers the business volume.
Durango is one of the most recognizable names in terms of high risk payment processing. It's been around for quite a while, and although it offers a series of useful services, the truth is it may feel a bit outdated for some businesses since services haven't changed much lately.
Like other providers, Durango has specialized in high risk industries, meaning it supports businesses dealing with online gaming, travel, CBD, or adult entertainment, among many others. If there's one thing that makes Durango stand out in the crowd, it’s the excellent customer support.
Durango also offers flexible accounts that can be individualized, so every package out there is tailored to the client’s needs and expectations.
Secure Integration
Taking payments online requires a top-notch integration. Security is a primary concern, especially since you're basically handling people's banking details. Durango takes care of that by providing a series of payment gateways, not to mention deeply customized shopping carts.
Support for Chargebacks
Support for chargebacks simply cannot be missed when you're looking for a high risk payment processing provider. Such issues do happen out of nowhere, and finding financial support with them can keep you on track. Durango offers some solutions and tools to manage and reduce chargebacks.
Multiple Currencies
With Durango, you can take payments in more currencies. It’s a must when your products or services are also available online. Even if you only operate or ship locally, some of your customers may have cards or accounts in other currencies, hence the necessity of support.
Services
Every service is customized. While Durango does offer some insights into fees and rates, the truth is you won't know the final costs until you go through a detailed evaluation of your business. Overall, you can have merchant accounts, fraud prevention solutions, chargeback tools and a full integration system.
Fees
Like other high risk payment processing providers, Durango also has a fee system in place. Setup fees are standard for most customers. Monthly fees may not vary too much either, but transaction fees make the difference.
Transaction fees depend on your business. Therefore, the industry you’re part of, the risk level and the business volume will dictate the final transaction fees. Such fees vary widely, so it’s hard to place Durango among cheap or expensive providers because you don’t know anything upfront.
Instabill may not be the most popular high risk payment processing provider out there, but it offers a series of decent services, mainly aimed at new businesses without a massive volume. It supports most high risk industries out there, from pharmaceuticals to travel.
Instabill is catching up with other leading providers, implementing a series of modern approaches to such an account. Compared to the high risk merchant account high-riskpay.com or other leading names, its offer is not that impressive, while customization is relatively limited.
Global Solutions
Instabill allows high risk payment processing in more currencies, allowing business owners to expand their operations internationally. Most major currencies are accepted, so businesses should have no issues dealing with customers from abroad.
Solutions Against Fraud
Fraud can take more forms. And while it may sound unreal, chargebacks can also turn abusive and be used as a fraudulent way to get money. From this point of view, Instabill has a few tools to monitor transactions and chargebacks in real time before analyzing them in-depth.
Chargeback Prevention
Assessing fraudulent transactions and issues isn’t everything. Instabill also offers access to some tools you can implement in order to reduce chargebacks. Obviously, authentic chargebacks based on real problems won’t be affected, but mainly fraudulent ideas.
More Options
Instabill allows a few different types of accounts. It depends on what kind of industry you operate in, not to mention your volume. Based on these factors, fees will also be charged differently, so you’ll have to go through a deep analysis of your business before being accepted.
Fees
Like other providers, Instabill offers variable fees for transactions, depending on their volume and size. Other than that, the initial account will be setup for a fee. Monthly fees will also apply further on for as long as you have the account.
PaymentCloud has gained popularity over the past few years with its intuitive and easy to use services. Setting up an account is fairly simple and won't take ages. You won't be bugged with all kinds of paperwork out of nowhere either, and the customer support seems friendly and knowledgeable.
However, nothing’s perfect and PaymentCloud makes no exception either. Compared to other similar providers, its services seem more basic. While suitable for a new business, they’re not the best options for big companies with a high transaction volume.
New Payment Solutions
Implementing PaymentCloud will give you access to a series of different options. Once up and running, the system will allow you to take credit card payments straight away, but also ACH, eCheck and even cryptocurrency payments.
You can take all these payments through online checkouts, mobile checkouts or POS devices.
Hardware for Payments
Taking card or other similar payments in person through a POS device will also require the integration of such a system. If you require hardware for such cards, PaymentCloud offers free mobile or retail EMV terminals. However, this terminal comes with a credit card processing account.
Wide Variety of Businesses
PaymentCloud caters to businesses of any risk level, including cruise lines, consulting, pharmacies, guns, legal offices, tech support, dating websites and accounting, among many others. While suitable for low risk businesses, too, fees aren't great for this category.
Popular Software Integrations
PaymentCloud has partnered up with more portals in order to provide a wide variety of software integrations. Simply put, it can support businesses in different industries in one full package rather than force customers to get different services from different providers.
Fees, however, aren’t listed publicly, as each package is individualized. However, there are fees and rates for account setup, maintenance and transactions. There are different rates for swipes and keys in payments, not to mention fees for the actual high risk profile of a business.
Superior Customer Service
PaymentCloud is easy to use and offers access to different services, but choosing the right ones for a custom package could make the job confusing for clients. Customer service is among the top-rated ones in this industry.
Payline Data offers high risk payment processing for a wide variety of industries. From healthcare and CBD to digital stuff and electronic commerce, there are literally no restrictions. As long as the business is registered and running, there should be no issues whatsoever.
The company offers multi-channel payment solutions and can provide countertop terminals, POS devices, shopping card integrations, invoicing services, recurring billing support and comprehensive API and developer documentation for those who need more.
Flexibility
Given the wide variety of services offered, Payline Data supports all kinds of payments. Whether you need online support, mobile payments, or even in-person terminals for card payments, you can get all these in a deeply customized package.
Excellent Fraud Prevention
While some basic companies leave fraud prevention to you, Payline Data offers some tools for real-time monitoring of your transactions. While continuous monitoring is definitely good, high risk payment processing also requires a human touch should any issues arise.
Clear Prices
This is definitely a plus, as many high risk payment processing providers don't provide their prices publicly. The fee structure from Payline Data is clear and has no hidden costs or charges in the terms and conditions. What you agree on is what you pay in the long run.
Tailored Solutions
Each business is different, so what works for some may not work for others. That’s why Payline Data provides tailored solutions based on your unique needs. Of course, a custom package comes with changes in the fee structure as well.
Fees and Rates
Similar to other companies, fees include setup and monthly expenses, as well as rates for each transaction.
Such fees vary based on the type of services you need. For example, online support comes with a monthly fee of $20, while in-person support only requires $10 a month. In-person transaction fees are set at 0.4%, while online transaction fees go up to 0.75%.
National Processing supports industries like enterprise, e-commerce, food and beverage, services, retails, wellness and high risk businesses. While aimed at low risk companies, the truth is fees could be a bit higher compared to what you'll get from other providers.
Solutions vary widely, but most importantly, they’re customized based on your unique needs and available budget. Even if you rarely use the terminals or solutions provided, you’ll be charged for maintenance on a monthly basis, so you’ll need to assess your business operations first.
Tailored Growth
While National Processing offers detailed pricing on its official website, your growth strategy must be tailored to your expectations and business operations. You don’t want to pay for services you don’t need, do you?
At the same time, this also means that the pricing you see on the website could be different from what you’ll need to pay.
Online Solutions
National Processing seems to focus on online payment solutions. This means you'll be able to accept ACH payments, but also online payments through your electronic commerce website and shopping card.
In-Person Solutions
In-person solutions cover multiple implementations. Business owners have the opportunity to order POS devices and optimize in-person sales, as well as advanced terminals for efficient checkout solutions. Different devices come with different prices, of course.
Third Party Integrations
You no longer need to reach from one company to another in order to find the services you’re after, since National Processing also supports multiple third party integrations, including shopping carts or checkout packages.
Pricing
What you need to pay is relatively easy to determine upfront or at least an idea. National Processing has a simple calculator on its page, allowing you to determine the perfect plan for your unique business needs.
You’ll have to enter the industry, average monthly processing volume, average monthly number of transactions, average monthly total processing fees and whether or not you’ll need a POS system for your business.
Now, how do you pick the best high risk payment processing provider? Here are the most important things to take into consideration.
You need to find a provider who can prove their success while serving companies in such industries. More specifically, find someone with experience in your unique industry. After all, each industry has its own challenges.
Your provider should also be aware of some of the most important laws and regulations in your chosen industry, not to mention patterns in terms of transactions or obstacles businesses like you might face.
These being said, your provider must be able to provide a customized package with all these things in mind.
A customer service rep should be available to take your concerns and questions, but also help with chargebacks, assist with disputes and reduce costs. Once again, assistance and experience with regulatory compliance are extremely important in the process.
Most companies offer customized packages based on your business type, industry, volume and so on. While you may find some pricing on the official website, that’s mainly as general guidance, since small details can affect the fee structure.
Companies like High Risk Pay provide a detailed breakdown of your fees, whether monthly or occasional, for transactions.
Monthly and transaction fees are some of the most important ones to pay attention to. These are your primary expenses when running a merchant account, and they often depend on the business volume, so you need them as low as possible.
Chargebacks may also occur out of nowhere. Fees for chargebacks can add up if you have too many, so again, you need to consider these fees as well.
Then, think about the rolling reserve requirements, an expense no one really talks about. These expenses are basically some funds kept by the provider. Their primary role is to handle possible chargebacks.
It’s worth noting that some providers charge more for international transactions, which also involve conversion fees.
Last, but not least, it doesn’t hurt to ask if there are any discount rates. Some providers deduct a particular percentage of each transaction from the processing fees.
More professional providers take customization even further. For example, you may deal with more currencies. Maybe you want a POS device for in-person transactions as well, or you only need the online platform.
How about some extras for your online platform? Optimization, shopping cart integration, quick checkouts, you name it. There are lots of options out there, and each one comes with a price.
Generally speaking, it’s cheaper to get all these things from the same provider as a package, rather than from different sources.
A deeply customizable billing cycle is desired, too, and should be aligned to the actual cash flow of your business. Then, look for payment thresholds, basically, you should set some limits in place to keep funds under control and prevent potential issues with the cash flow.
Consider risk management as well. It’s not just a matter of security standards, but also a matter of mitigating fraud.
Even if some companies don’t advertise such a high degree of customization, it doesn’t hurt to ask upfront.
Unless you deal locally and people are happy to take cash from an ATM to pay for your products or services, you need a merchant account. A merchant account allows you to take card payments. Without such an account, you won’t be able to get the funds out of your customers’ accounts.
Most commonly, such accounts can be applied for over the Internet. However, some local vendors may also require you to complete classic paperwork applications. Your odds of being approved depend on factors such as your industry, credit score, or even location.
Some providers allow you to calculate rates briefly on their websites, so at least you’ll have an idea about what to expect. Some others provide upright pricing plans on their websites.
Generally speaking, fees are customized. Also, since you’re operating in a high risk industry, you’ll be charged more than businesses operating in a low risk field.
Generally speaking, they'll need identification details for yourself and your business, as well as banking details for your businesses. If you require a license to run the business, they'll most likely ask you to see it, too.
Furthermore, without such an account, you won’t be able to charge people online or take card payments, whether in person or online.
It’s a serious limitation that can halt your business growth. Based on what you do or what industry you operate in, the merchant account could be a necessity you simply cannot avoid.
Managing a local high-risk business could be easily done if you deal with cash only. However as you also need to process card payments, you'll need a payment processor. In a world where, more and more people shop online or avoid cash, a payment processor is not a nice thing to have but an actual necessity.
This is where most problems tend to arise. Obtaining a payment processor account can be difficult if your business is deemed high risk. The good news is there are ways around it, as well as businesses only dealing with high risk industries.
This being said, let's check out what makes your business high risk and what you can do to ensure a smooth operation.
Understanding the Concept of High Risk Payment Processing
The banking industry has never been more complex, while the financial ecosystem spreads in more directions, able to support different businesses in different ways. There are all kinds of small details to pay attention to, and many of them can block your operations if you fail to consider them.
When running a high risk business, the system can be extremely intricate. Some business owners choose to outsource such tasks to different professionals, from bankers to accountants. But then, there are also things you may need to do yourself.
Dealing with high risk payment processing is usually your task. You’ll need to pick a professional service with great reliability and decent rates. It sounds like mission impossible because each service does one or the other, but a little research can push you in the right direction.
Moreover, if handled correctly, payment processing will boost your financial operations and also give you the possibility to attract more customers.
In some jurisdictions or industries, professional payment processing is a legal requirement, too.
But then, what’s high risk payment processing? How do you actually benefit from it?
The concept is fairly simple to understand because it's aimed at businesses in high risk industries, simple as that. Such an account has its own terms and conditions only to handle the operations of such businesses.
In other words, you can forget about taking cash only and dealing locally, as you can also accept card payments to diversify your payment portfolio.
Now, the reasoning behind these accounts is based on some categories defined by the banking industry. Some industries are simply considered to be high-risk, so most banks will refuse to open business bank accounts for them.
From this point of view, businesses can be low or high risk. The risk is defined by the potential issues they can bring to a bank. In theory, banks are protected against too many chargebacks and similar issues. But then, such repetitive challenges are simply too much headache, so most banks avoid them.
Why Are Some Industries Considered High Risk?
For most banking institutions, pretty much the same industries are considered high risk. Of course, there are different factors that can determine the risk of a company, but they don’t seem to change much from one institution to another.
While some businesses go through a comprehensive check before determining the risk status, some others are automatically labeled as soon as they apply for a payment processing option.
Credit History
The overall credit history is one of the first elements in the process. Obviously, the higher it is, the better. But at the same time, a company with a poor credit history must’ve had some issues in the past, hence the risk assessment and almost instant rejection.Account Termination
A bank will naturally check the history of a company upfront. If there’s a history of account termination issues, those who check will need to know more. However, having a background of account termination issues is a red flag.Industry
The industry you're part of can usually suggest an instant rejection. Certain industries are considered high risk because of numerous factors, such as the potential profits or the amount of chargebacks. No matter how well the company is doing, being part of these industries will get you instantly rejected.Subscription Services
Based on the company profile, high risk payment processing could be the only option if you deal with subscription based services or products. There’s no consistency in the stream of income, so your business isn’t seen as a viable option.More Currencies
While it wouldn't necessarily be an issue, operating with numerous currencies within a single business is seen as a bad sign by most payment processors. While, in theory, they should appreciate the idea of gaining more fees for conversions, that's a red flag.High Transactions
This is another reason that doesn't necessarily make sense. Having high transactions or dealing with large amounts of money is usually a reason to get rejected. This isn't a general rule, though, as your industry is just as important.Location
Locating a business in a particular country could be good for your tax optimization, but there are things that require more research, too. For instance, if a certain country has a history of chargebacks or a potential risk, you're less likely to be accepted.Multinational
High risk payment processing could be your only option if your business is international, too. Again, there are some standards here. Large companies with a proven history won't be affected, but a relatively new business will most likely be rejected.Most Popular Types of High Risk Industries
Getting a high risk merchant account at highriskpay.com or other high risk payment processing companies is usually your main option if you’re part of certain industries.Again, the industry you operate in plays a significant role in the process because some industries are automatically rejected.
Sure, you could get accepted if you run a large corporation with an impressive history and even more impressive numbers in terms of profit. But other than that, if you’re not proven yet, chances are you’ll struggle.
Somehow, most banking institutions have added the same industries on their blacklists, showcasing their communication in this field.
Take travel and booking agencies, for example. This is a commission based service or a subscription based service, so chances are the company will be rejected by most processors. Pretty much all subscription based businesses will be in the same situation.
Vitamins and supplements are seen in a similar way. While there are, indeed, many reputable companies in this field, the past few decades have also seen numerous wonder solutions that promised the world. Many of them collapsed before they took off, hence the risks.
The gambling and betting industry has also been affected because there are quite a few question marks around it. Again, there should be no problems for the big players in this industry, but a new business won’t be seen with good eyes.
Online casinos, social networks, adult entertainment, telemarketing, and dating websites and portals go in a similar category.
Things go even further. Alcohol, tobacco and pharmaceuticals are likely to be targeted too. Such industries are too highly regulated by governments, meaning profits are almost inexistent.
CBD products go in the same category. While the CBD industry is still relatively new, there are a few reasons wherefore it's rejected. First, it still requires some regulation despite the laws targeting it at the moment. Second, it's seen as one of those wonder solutions that could fade away after a decade.
A new company in the real estate industry will be affected as well because it's mainly commission-based work. However, even if you flip properties, the profit is less likely to be consistent. Similarly, investment firms might see some issues here, especially since no investment is 100% certain.
It's worth noting that the electronic gaming industry is a problem, too, despite its popularity, not to mention multilevel marketing, an industry that keeps popping up every now and then. Most companies using this business model have collapsed over a relatively short period of time.
The list could be much longer, but for most banking institutions, these industries will most likely require a high risk payment processing provider.
Reasons to Go for a High Risk Payment Processor
From many points of view, it's pretty obvious why you need to go in this direction. For many companies or industries, a high-risk merchant high-riskpay.com account or similar would be the only solution for card processing.
Unless you’re only dealing with cash, chances are you’ll get stuck. For instance, you can’t do cash only if your business also operates online. If you’re exclusively online, card payments are your only option, as well as some online payment platforms.
Accessibility
A high risk payment processing account gives you the option to operate at full power. Being able to take such payments will give your clients more options. If you don’t have their preferred payment option, chances are they’ll turn around and use your competition.Therefore, offering some variety is a massive plus.
Moreover, we live in a world where more and more people rely on virtual money rather than cash. Cards are perfectly normal these days, as a lot of people no longer carry cash. Besides, many companies allow crypto payments as well.
Having this form of accessibility also gives your company credibility. If you only ask for cash, something may smell fishy. It just makes you look more professional.
Compliance
From the same point of view, your company has to comply with some standards and regulations when using card processing. It’s a good sign for customers. It’s one thing to be asked for cash (assuming you deal in person) and another thing to take any type of payment.Not only is it more convenient for your customers, but you’ll also show some credibility.
On top of all these, high risk payment processing providers have some strict rules. Following their rules guarantees a high level of protection while trading.
There’s nothing to worry about when it comes to customers because no one ever cares what payment processor you’re using, whether it’s a high risk one or a general one. As long as you provide a good service or product for a good price, people are happy, simple as that.
Less Risk
When your business is seen as part of a high risk industry, high risk payment processing providers tend to provide access to a series of extra tools and features. When your business is risky, they take a risk too, so they try to minimize it by giving you some extra tools.There are all sorts of extra anti fraud features, guides and solutions to prevent the most common problems in your industry. Each industry has certain risks, so that's why the payment processor will focus on them.
These kinds of features will prove useful in the long run because they can reduce your risks, but also prevent fraudulent operations.
Disadvantages Associated With High Risk Payment Processors
High risk payment processing isn’t perfect. You’re seen as a high risk business, so that’s already a drawback. No matter how careful you are about your business or how good your plan is, you’re still a risk. Banking institutions won’t make a difference at this point anyway.While high risk payment processors are excellent for giving you the possibility to take card payments and provide your customers with more payment solutions, they do have some drawbacks as well. After all, everything is related to the risk you come with.
Limited Options
If you were part of a low risk industry, pretty much any banking institution would accept your business. You would get a bank account overnight, not to mention payment processing, You’d be able to take card payments with no issues whatsoever.The problem is you're considered high risk, and not because of what you do, but because of what others have done before you. A decade ago, dealing with high risk payment processing was nearly mission impossible. Today, there are some options.
You could get a high risk merchant account highriskpay.com, or other similar providers, so at least there's a market based on companies specialized in such industries. Unfortunately, the market is not as comprehensive as you may want it to be.
While there's some improvement in this segment, merchants would like to see more companies. The market is limited, and to ensure there are no sketchy schemes, most of these providers will also require extra documentation and paperwork. After all, that's what high risk means.
Prices and Fees
Fees are also different. In general, high risk payment processing is more expensive than the low risk alternative because the provider takes more risk. There are different fees for most types of transactions.For instance, you may have to pay to open such an account once you get approved. Processing will also come with some fees. Offering merchant services will add to the costs, too.
Again, different providers have different fees, hence the necessity of doing a bit of research.
Generally speaking, these higher expenses represent the provider's security. You're exposed to all kinds of expenses, including chargebacks, so the provider tries to adopt some security measures. Talking about chargebacks, their fees could also be higher than normal.
Short Lifespan
This issue could affect some companies, hence the necessity of doing your research. Some of these providers end up generating more chargebacks than normally, mainly because of the risks they're exposed to.An overflow of these chargebacks can trigger account termination. No matter what financial institution you pick, there’s always this risk based on the chargebacks.
Such issues may affect your account.
Of course, getting an account with a professional service is less likely to cause such issues, but it takes time to check out reviews upfront.
Top 7 Best Rated High Risk Payment Processors
There are quite a few high risk payment processors out there, but once again, it pays off to browse the market to find a service suitable for your business. These being said, here are some of the top rated high risk payment processing companies these days.HighRiskPay
Whether it’s gambling, adult entertainment or CBD, payment processor highriskpay.com is likely to deliver. The company has been around for quite some years now, maintaining integrity and offering a wide variety of services to businesses in need.
If your business is considered high risk by a traditional banking institution, HighRiskPay is actually specialized in your circumstances. Online dating, gaming, pharmaceutical and supplement businesses are also supported.
High Approval
HighRiskPay is mainly known for its high approval rate. It's specialized in businesses with a poor credit or no credit at all, as well as businesses in the high risk industry. The high risk credit card processing highriskpay.com can also help businesses with a history of chargebacks.
Numerous Tools
In order to both reduce its risk and help companies, HighRiskPay also provides access to a wide variety of tools to keep chargebacks under control. It also supports disputes in a professional manner, aiming to conduct its own investigations should any issues around.
Different Payment Gateways
Compared to other high risk payment processing companies, HighRiskPay supports an impressive range of payment gateways. No matter what you’re after, chances are you’ll find it as you explore your account options.
Services
It's extremely important to consider the model of your business prior to opening an account, only to determine whether or not a provider can support it. HighRiskPay provides merchant accounts, recurring billing support, fraud prevention tools, and chargeback protection.
Fees
In terms of fees, the high risk payment processor highriskpay.com has a crystal clear pricing model. You’ll know the setup fee, potential monthly fees or fees associated with transactions at a glance, without any hidden costs.
PayAgency
Similarly, PayAgency is specialized in businesses considered to be part of high risk industries. If you’ve already faced a few rejections from traditional banks, chances are you’re in a blacklisted industry, so you might as well try your luck elsewhere.
From online gaming and electronic commerce to gambling and adult websites, PayAgency offers a series of different accounts. You could take payments in more currencies, but you could also benefit from superior compliance management solutions.
AI Implementation
Compared to other similar companies in this industry, PayAgency has recently implemented a fraud detection algorithm based on artificial intelligence. The algorithm monitors fraudulent activities in real time and aims to prevent them by triggering warning signals.
Available in More Currencies
PayAgency stands out with its multi-currency accounts. It supports just over 150 currencies and allows converting between different currencies in real time, yet it’s important to consider the conversion rate upfront. They’re not far from the market, but still worth a check.
Chargeback Solutions
Chargebacks are some of the most popular issues associated with high risk payment processing, but also the main reason wherefore many traditional banks refuse such industries. PayAgency has automated tools to manage disputes and chargebacks.
While, in theory, it's a good thing, the truth is a human touch is often necessary in such situations. At the moment, high risk merchant highriskpay com offers the best options for disputes and chargeback management.
Regulations and Laws
Worried that you may need to work more to ensure you comply with all the regulations out there? No problem! PayAgency offers a series of tools to make sure you’re compliant with these regulations. From AML and KYC to classic GDPR, you’re covered.
Fees and Rates
Each account is customized in the smallest details. However, in general, PayAgency will charge a setup fee, as well as monthly fees for as long as you need the account. Transaction fees vary widely from one industry to another, depending on the risk.
Overall, pricing is customized and apart from the risk profile, PayAgency also considers the business volume.
Durango Merchant Services
Durango is one of the most recognizable names in terms of high risk payment processing. It's been around for quite a while, and although it offers a series of useful services, the truth is it may feel a bit outdated for some businesses since services haven't changed much lately.
Like other providers, Durango has specialized in high risk industries, meaning it supports businesses dealing with online gaming, travel, CBD, or adult entertainment, among many others. If there's one thing that makes Durango stand out in the crowd, it’s the excellent customer support.
Durango also offers flexible accounts that can be individualized, so every package out there is tailored to the client’s needs and expectations.
Secure Integration
Taking payments online requires a top-notch integration. Security is a primary concern, especially since you're basically handling people's banking details. Durango takes care of that by providing a series of payment gateways, not to mention deeply customized shopping carts.
Support for Chargebacks
Support for chargebacks simply cannot be missed when you're looking for a high risk payment processing provider. Such issues do happen out of nowhere, and finding financial support with them can keep you on track. Durango offers some solutions and tools to manage and reduce chargebacks.
Multiple Currencies
With Durango, you can take payments in more currencies. It’s a must when your products or services are also available online. Even if you only operate or ship locally, some of your customers may have cards or accounts in other currencies, hence the necessity of support.
Services
Every service is customized. While Durango does offer some insights into fees and rates, the truth is you won't know the final costs until you go through a detailed evaluation of your business. Overall, you can have merchant accounts, fraud prevention solutions, chargeback tools and a full integration system.
Fees
Like other high risk payment processing providers, Durango also has a fee system in place. Setup fees are standard for most customers. Monthly fees may not vary too much either, but transaction fees make the difference.
Transaction fees depend on your business. Therefore, the industry you’re part of, the risk level and the business volume will dictate the final transaction fees. Such fees vary widely, so it’s hard to place Durango among cheap or expensive providers because you don’t know anything upfront.
Instabill
Instabill may not be the most popular high risk payment processing provider out there, but it offers a series of decent services, mainly aimed at new businesses without a massive volume. It supports most high risk industries out there, from pharmaceuticals to travel.
Instabill is catching up with other leading providers, implementing a series of modern approaches to such an account. Compared to the high risk merchant account high-riskpay.com or other leading names, its offer is not that impressive, while customization is relatively limited.
Global Solutions
Instabill allows high risk payment processing in more currencies, allowing business owners to expand their operations internationally. Most major currencies are accepted, so businesses should have no issues dealing with customers from abroad.
Solutions Against Fraud
Fraud can take more forms. And while it may sound unreal, chargebacks can also turn abusive and be used as a fraudulent way to get money. From this point of view, Instabill has a few tools to monitor transactions and chargebacks in real time before analyzing them in-depth.
Chargeback Prevention
Assessing fraudulent transactions and issues isn’t everything. Instabill also offers access to some tools you can implement in order to reduce chargebacks. Obviously, authentic chargebacks based on real problems won’t be affected, but mainly fraudulent ideas.
More Options
Instabill allows a few different types of accounts. It depends on what kind of industry you operate in, not to mention your volume. Based on these factors, fees will also be charged differently, so you’ll have to go through a deep analysis of your business before being accepted.
Fees
Like other providers, Instabill offers variable fees for transactions, depending on their volume and size. Other than that, the initial account will be setup for a fee. Monthly fees will also apply further on for as long as you have the account.
PaymentCloud
PaymentCloud has gained popularity over the past few years with its intuitive and easy to use services. Setting up an account is fairly simple and won't take ages. You won't be bugged with all kinds of paperwork out of nowhere either, and the customer support seems friendly and knowledgeable.
However, nothing’s perfect and PaymentCloud makes no exception either. Compared to other similar providers, its services seem more basic. While suitable for a new business, they’re not the best options for big companies with a high transaction volume.
New Payment Solutions
Implementing PaymentCloud will give you access to a series of different options. Once up and running, the system will allow you to take credit card payments straight away, but also ACH, eCheck and even cryptocurrency payments.
You can take all these payments through online checkouts, mobile checkouts or POS devices.
Hardware for Payments
Taking card or other similar payments in person through a POS device will also require the integration of such a system. If you require hardware for such cards, PaymentCloud offers free mobile or retail EMV terminals. However, this terminal comes with a credit card processing account.
Wide Variety of Businesses
PaymentCloud caters to businesses of any risk level, including cruise lines, consulting, pharmacies, guns, legal offices, tech support, dating websites and accounting, among many others. While suitable for low risk businesses, too, fees aren't great for this category.
Popular Software Integrations
PaymentCloud has partnered up with more portals in order to provide a wide variety of software integrations. Simply put, it can support businesses in different industries in one full package rather than force customers to get different services from different providers.
Fees, however, aren’t listed publicly, as each package is individualized. However, there are fees and rates for account setup, maintenance and transactions. There are different rates for swipes and keys in payments, not to mention fees for the actual high risk profile of a business.
Superior Customer Service
PaymentCloud is easy to use and offers access to different services, but choosing the right ones for a custom package could make the job confusing for clients. Customer service is among the top-rated ones in this industry.
Payline Data
Payline Data offers high risk payment processing for a wide variety of industries. From healthcare and CBD to digital stuff and electronic commerce, there are literally no restrictions. As long as the business is registered and running, there should be no issues whatsoever.
The company offers multi-channel payment solutions and can provide countertop terminals, POS devices, shopping card integrations, invoicing services, recurring billing support and comprehensive API and developer documentation for those who need more.
Flexibility
Given the wide variety of services offered, Payline Data supports all kinds of payments. Whether you need online support, mobile payments, or even in-person terminals for card payments, you can get all these in a deeply customized package.
Excellent Fraud Prevention
While some basic companies leave fraud prevention to you, Payline Data offers some tools for real-time monitoring of your transactions. While continuous monitoring is definitely good, high risk payment processing also requires a human touch should any issues arise.
Clear Prices
This is definitely a plus, as many high risk payment processing providers don't provide their prices publicly. The fee structure from Payline Data is clear and has no hidden costs or charges in the terms and conditions. What you agree on is what you pay in the long run.
Tailored Solutions
Each business is different, so what works for some may not work for others. That’s why Payline Data provides tailored solutions based on your unique needs. Of course, a custom package comes with changes in the fee structure as well.
Fees and Rates
Similar to other companies, fees include setup and monthly expenses, as well as rates for each transaction.
Such fees vary based on the type of services you need. For example, online support comes with a monthly fee of $20, while in-person support only requires $10 a month. In-person transaction fees are set at 0.4%, while online transaction fees go up to 0.75%.
National Processing
National Processing supports industries like enterprise, e-commerce, food and beverage, services, retails, wellness and high risk businesses. While aimed at low risk companies, the truth is fees could be a bit higher compared to what you'll get from other providers.
Solutions vary widely, but most importantly, they’re customized based on your unique needs and available budget. Even if you rarely use the terminals or solutions provided, you’ll be charged for maintenance on a monthly basis, so you’ll need to assess your business operations first.
Tailored Growth
While National Processing offers detailed pricing on its official website, your growth strategy must be tailored to your expectations and business operations. You don’t want to pay for services you don’t need, do you?
At the same time, this also means that the pricing you see on the website could be different from what you’ll need to pay.
Online Solutions
National Processing seems to focus on online payment solutions. This means you'll be able to accept ACH payments, but also online payments through your electronic commerce website and shopping card.
In-Person Solutions
In-person solutions cover multiple implementations. Business owners have the opportunity to order POS devices and optimize in-person sales, as well as advanced terminals for efficient checkout solutions. Different devices come with different prices, of course.
Third Party Integrations
You no longer need to reach from one company to another in order to find the services you’re after, since National Processing also supports multiple third party integrations, including shopping carts or checkout packages.
Pricing
What you need to pay is relatively easy to determine upfront or at least an idea. National Processing has a simple calculator on its page, allowing you to determine the perfect plan for your unique business needs.
You’ll have to enter the industry, average monthly processing volume, average monthly number of transactions, average monthly total processing fees and whether or not you’ll need a POS system for your business.
How to Choose the Best High Risk Payment Processor
As you can see, names like High Risk Pay or Durango dominate the market, yet there are smaller companies offering similar services, too, so you'll have to make a choice based on your business necessities and rates.Now, how do you pick the best high risk payment processing provider? Here are the most important things to take into consideration.
Proven Track Record
While not always a bad idea if you do your research, settling for a new high risk payment processing provider isn’t necessarily a good idea, regardless of how good their deal is. What you need instead is a proven track record of dealing with high risk industries.You need to find a provider who can prove their success while serving companies in such industries. More specifically, find someone with experience in your unique industry. After all, each industry has its own challenges.
Your provider should also be aware of some of the most important laws and regulations in your chosen industry, not to mention patterns in terms of transactions or obstacles businesses like you might face.
These being said, your provider must be able to provide a customized package with all these things in mind.
Good Customer Service
Issues may arise when least expected, especially in high risk industries. There are all kinds of complex problems that will require immediate support and quick resolutions. With these thoughts in mind, choosing a high risk payment processing provider with a reputable customer service is a must.A customer service rep should be available to take your concerns and questions, but also help with chargebacks, assist with disputes and reduce costs. Once again, assistance and experience with regulatory compliance are extremely important in the process.
Clear Fees
Like any other industry, this one may also have some rotten apples, hence the necessity to do your homework upfront.Most companies offer customized packages based on your business type, industry, volume and so on. While you may find some pricing on the official website, that’s mainly as general guidance, since small details can affect the fee structure.
Companies like High Risk Pay provide a detailed breakdown of your fees, whether monthly or occasional, for transactions.
Monthly and transaction fees are some of the most important ones to pay attention to. These are your primary expenses when running a merchant account, and they often depend on the business volume, so you need them as low as possible.
Chargebacks may also occur out of nowhere. Fees for chargebacks can add up if you have too many, so again, you need to consider these fees as well.
Then, think about the rolling reserve requirements, an expense no one really talks about. These expenses are basically some funds kept by the provider. Their primary role is to handle possible chargebacks.
It’s worth noting that some providers charge more for international transactions, which also involve conversion fees.
Last, but not least, it doesn’t hurt to ask if there are any discount rates. Some providers deduct a particular percentage of each transaction from the processing fees.
Customization Features
Customization is extremely important when looking for a high risk payment processing provider. Most companies offer some sort of customization, yet it usually relates to the actual fees, and it depends on what kind of business you run and how much money you roll on a monthly basis.More professional providers take customization even further. For example, you may deal with more currencies. Maybe you want a POS device for in-person transactions as well, or you only need the online platform.
How about some extras for your online platform? Optimization, shopping cart integration, quick checkouts, you name it. There are lots of options out there, and each one comes with a price.
Generally speaking, it’s cheaper to get all these things from the same provider as a package, rather than from different sources.
A deeply customizable billing cycle is desired, too, and should be aligned to the actual cash flow of your business. Then, look for payment thresholds, basically, you should set some limits in place to keep funds under control and prevent potential issues with the cash flow.
Consider risk management as well. It’s not just a matter of security standards, but also a matter of mitigating fraud.
Even if some companies don’t advertise such a high degree of customization, it doesn’t hurt to ask upfront.
Strong Security
Different high risk payment processing providers have different security standards. From this point of view, there are three major elements to pay attention to:- SSL encryption ensures data storage or transmission is encrypted and secured, a must when dealing with people's banking details.
- PCI DDS compliance means the provider sticks to international security laws and regulations for transactions involving debit or credit cards.
- Secure payment gateways ensure transactions and associated details can only be accessed by authorized institutions.
FAQs
Still undecided about the best high risk payment processing provider?Do I really need a merchant account?
When you look at high-risk payment processing providers, they look like a lot of headaches, not to mention the extra fees associated with them. You probably ask yourself, does your business really need a merchant account then?Unless you deal locally and people are happy to take cash from an ATM to pay for your products or services, you need a merchant account. A merchant account allows you to take card payments. Without such an account, you won’t be able to get the funds out of your customers’ accounts.
How can I get a high risk merchant account?
You need to do your homework, research your options and find a vendor specializing in high risk industries. Companies like High Risk Pay or Durango offer such services, but the list is clearly longer. Once you decide on one, you’ll have to research it and register.Most commonly, such accounts can be applied for over the Internet. However, some local vendors may also require you to complete classic paperwork applications. Your odds of being approved depend on factors such as your industry, credit score, or even location.
How much does it cost to have a merchant account?
Setup fees or monthly rates vary widely from one provider to another. While the overall cost is extremely important in the process, there are other factors you need to take into consideration as well.Some providers allow you to calculate rates briefly on their websites, so at least you’ll have an idea about what to expect. Some others provide upright pricing plans on their websites.
Generally speaking, fees are customized. Also, since you’re operating in a high risk industry, you’ll be charged more than businesses operating in a low risk field.
What do I need to apply for a high risk payment processing account?
Most vendors have a few general requirements when it comes to applying for a high risk merchant account, but there are also some individualized requirements you need to pay attention to.Generally speaking, they'll need identification details for yourself and your business, as well as banking details for your businesses. If you require a license to run the business, they'll most likely ask you to see it, too.
Conclusion
As a short final conclusion, high risk payment processing can be a challenge for numerous businesses. While you can avoid all this hassle by dealing with cash only, the truth is that fewer and fewer people carry cash these days.Furthermore, without such an account, you won’t be able to charge people online or take card payments, whether in person or online.
It’s a serious limitation that can halt your business growth. Based on what you do or what industry you operate in, the merchant account could be a necessity you simply cannot avoid.
