Running a high-risk business can be tough, especially when your payment processor stops your account or freezes your money without telling you.
If you use big names like PayPal or Stripe you might run into these kinds of problems because they aren’t set up well for high-risk businesses.
This guide will show you why these platforms aren’t good enough for high-risk industries, and how using special providers like FastoPayments can help.
Why PayPal and Stripe Don’t Work for High-Risk Businesses
PayPal and Stripe are good for regular businesses, but they often have strict rules that don’t work well for high-risk companies.
If your business is labeled “high-risk,” you might suddenly find your money held or your account shut down.
Mainstream processors don’t like taking risks, so businesses like CBD shops, online gambling, or travel sites often have problems like delayed payments or sudden account closures.
Even if you’re doing everything right, these companies still might freeze your account.
Problems with PayPal and Stripe for High-Risk Payments
When businesses from high-risk sectors use platforms like PayPal or Stripe, they commonly encounter various issues:
Account Freezes: Sudden and unexpected freezing of funds disrupts cash flow.
Delayed Payments: Payments are frequently delayed pending lengthy reviews, impacting liquidity.
Abrupt Terminations: Accounts may be permanently closed without prior warning or clear justification.
For example, a CBD retailer with growing sales volumes may suddenly find their account frozen because the processor’s automated system flags the spike as suspicious activity.
Why Your Account Might Get Frozen
PayPal and Stripe heavily rely on automated risk-detection systems that frequently misinterpret legitimate business activities as potential fraud. Common triggers for these systems include:
Sudden increases in transaction volumes
International transactions or cross-border sales
Subscription-based or recurring payments
Once triggered, these automated systems initiate account holds without prior notice, and the path to resolution often involves navigating complex and opaque customer support channels, further compounding frustration and delays.
💡 Interested in learning more about what’s included in a typical high-risk merchant account? View our complete breakdown of FastoPayments’s high-risk merchant accounts.
Why High-Risk Businesses Need More Flexibility
High-risk sectors naturally involve higher financial uncertainty and increased scrutiny from regulatory authorities.
Traditional processors lack the nuanced approach necessary to differentiate between genuinely risky businesses and those responsibly managing industry-specific risks.
High-risk businesses require processors equipped to handle customized underwriting, flexible transaction thresholds, and proactive risk mitigation strategies tailored specifically to their operational realities.
What You Need from a High-Risk Payment Gateway
Selecting an effective high-risk payment gateway involves evaluating several crucial factors to ensure compatibility with your business model and operational needs:
Transparency
Choose a payment provider that clearly communicates fees, approval criteria, and the circumstances under which accounts could face holds or terminations.
Multi-Currency and Global Payment Support
High-risk businesses often operate internationally. Selecting a provider with extensive multi-currency support reduces exchange fees and simplifies cross-border transactions.
Robust Risk Management Tools
Risk management is central to high-risk processing. Providers should offer advanced fraud detection systems, chargeback management solutions, and risk monitoring tools to proactively safeguard accounts.
Important Features to Consider
When reviewing alternatives, prioritize processors that offer:
Detailed and transparent terms of service
Personalized account management
Reliable customer support
Real-time reporting and analytics
Chargebacks and Fraud Management
High chargeback rates significantly impact high-risk businesses. To minimize the damage, choose providers equipped with:
Comprehensive fraud prevention tools, including customizable filters
Regular updates and reporting to keep you informed of your account health
FastoPayments: Specialized Solutions for High-Risk Industries
FastoPayments excels in providing specialized payment solutions tailored specifically to high-risk sectors. Unlike mainstream providers, FastoPayments thoroughly evaluates individual risk profiles and delivers personalized payment solutions.
Why Choose FastoPayments?
FastoPayments distinguishes itself with:
Quick yet thorough underwriting tailored specifically to your industry
Clear and straightforward fee structures, eliminating hidden surprises
Ongoing compliance and account management support
Direct and accessible customer support dedicated to high-risk businesses
Our industry-specific approach ensures that your business receives targeted attention, significantly reducing the likelihood of unexpected disruptions.
6 Tips for Enhancing Your High-Risk Merchant Account Approval Odds
Getting approved for a high-risk merchant account depends on several factors. Working with a qualified service provider, asking questions, and understanding your specific business requirements are essential steps in the process.
At FastoPayments, we’ve partnered with numerous high-risk businesses and can offer these valuable recommendations:
1. Provide Accurate Information
Meticulously prepare all necessary documentation before applying. This includes business licenses, transaction history, proof of domain ownership, identification documents, and other relevant materials.
When in doubt, it’s always better to provide extra information that demonstrates your business’s legitimacy and financial health.
2. Maintain Good Business Standing
Your reputation, both online and offline, significantly impacts how acquiring banks perceive you.
Businesses that demonstrate transparency and authority increase their approval chances while showcasing their commitment to ethical and legal operations.
3. Improve Financial Stability
To impress potential payment service providers, maintain positive account balances, reduce debts, demonstrate consistent revenue growth, and minimize disputes.
These factors prove your business’s reliability and profitability to high-risk merchant account providers.
4. Manage Daily Transaction Limits
Understanding your payment volumes helps predict business growth and establish realistic transaction limits.
Proper transaction management positions you to set reasonable goals, reduce growth barriers, and negotiate higher limits over time.
5. Enhance Security Measures
Demonstrating commitment to security makes your business more attractive to payment providers and customers alike.
Implementing SSL encryption, multi-factor authentication, PCI DSS compliance, and robust security protocols significantly boosts your approval chances.
6. Demonstrate a Plan for Managing Chargebacks
High-risk industries inevitably face higher chargeback risks, but excessive chargebacks raise red flags for acquirers.
Having strategies in place (such as clear return policies, swift dispute resolution, fraud prevention tools, and responsive customer service) demonstrates operational efficiency that service providers value.
Final Thoughts on Reliable Payment Gateway Selection
Navigating the complex world of high-risk payment processing doesn’t have to be a constant challenge. By implementing the strategies outlined above and partnering with a specialized provider like FastoPayments, your business can establish stable, reliable payment processing that supports growth rather than hindering it.
Remember that success in high-risk industries demands more than just finding any payment processor willing to work with you—it requires a strategic partner who understands your unique challenges and is equipped to address them proactively.
At FastoPayments, we’ve built our reputation on providing customized solutions for businesses that mainstream processors have left behind. Our expertise in high-risk industries means we can offer not just payment processing, but genuine partnership throughout your business journey.
Don’t let payment processing limitations hold your business back any longer. Contact FastoPayments today to discuss how our specialized high-risk merchant solutions can provide the stability and growth potential your business deserves.
