High-risk businesses, from CBD and gambling to adult entertainment and travel, often face payment processing hurdles.
Traditional banks and mainstream providers reject them, leaving many stranded with hidden fees, sudden account closures, or poor support.
Choosing the right partner is critical. In this guide, we’ll spotlight the top 5 high-risk merchant account providers in the US, UK, and Europe, with a focus on transparency, reliability, and tailored solutions.
Industries that Require a High-Risk Merchant Account
Banks typically classify these industries as high-risk:
-
Adult entertainment businesses operate under strict age restrictions, complex legal frameworks, and experience frequent chargebacks. This category includes adult streaming platforms, escort services, online adult stores, and strip clubs.
-
Travel industry companies face challenges from cancellations and demand fluctuations driven by weather and events. Travel agencies, flight operators, and tour operators are particularly vulnerable.
-
CBD businesses navigate complex regulatory landscapes and banking restrictions, making reliable payment processing difficult. Online and retail CBD sellers, hemp product distributors, and wellness brands often experience high chargeback rates and compliance challenges.
-
Vaping and tobacco businesses operate under constant regulatory pressure and health-related restrictions. Online cigar, cigarette, and vape product retailers frequently struggle to secure payment processing.
-
Cryptocurrency businesses, including exchanges and wallet providers, are considered high-risk due to market volatility, fraud concerns, and evolving global regulations.
-
Gambling businesses, such as lottery services, sports betting platforms, and online casinos, are classified as high-risk because of high chargeback rates and fraud patterns.
💡 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.
Challenges High-Risk Merchants Face
Strict Underwriting and Sudden Account Freezes
High-risk merchants often undergo rigorous vetting procedures before being approved for payment processing.
Banks and payment processors scrutinize business models, ownership structures, and financial histories in detail.
Even after approval, these businesses remain under constant monitoring, which can lead to sudden account freezes or terminations if suspicious activity is detected or risk thresholds are exceeded. These freezes can occur without warning, severely disrupting cash flow and daily operations.
Higher Processing Fees and Rolling Reserves
To offset perceived risk, processors typically charge significantly higher fees to high-risk merchants, often 1-2% higher than standard rates, plus elevated per-transaction fees.
Additionally, processors commonly implement rolling reserves, where they withhold 5-15% of a merchant’s processed volume for 6-12 months as security against potential chargebacks and disputes.
solutions. This limitation creates several significant challenges:
Reduced Competition
Unlike low-risk businesses that can choose from numerous providers, high-risk merchants may only have a handful of specialized processors willing to work with them. This lack of competition leads to:
-
Less incentive for processors to offer competitive rates
-
Fewer opportunities to negotiate favorable terms
-
Greater vulnerability to predatory pricing practices
Limited Recourse
If issues arise, high-risk merchants often discover they have limited avenues for resolution:
-
Dispute processes that strongly favor the processor
-
Arbitration clauses that prevent legal action
-
Limited customer support options compared to standard merchants
-
Few alternatives if they need to switch providers quickly
Top 5 High-Risk Merchant Account Providers
Best Overall: FastoPayments
FastoPayments offers transparent pricing with no hidden fees, focusing on low transaction costs starting from as low as 3%. It provides tailored solutions for industries such as gambling, CBD, and crypto.
The platform features advanced fraud prevention through AI-driven tools and 24/7 monitoring, helping reduce chargebacks by up to 70%.
Additionally, FastoPayments supports multi-currency transactions across the US, UK, and EU, making it ideal for businesses operating internationally.
Dennis, CEO of FastoPayments, shared: “Many high-risk merchants have been burned by providers who lack transparency or fail to deliver. We prioritize honesty, support, and tailored solutions to help businesses succeed.”
Get a quote for free here and start getting paid.
Best High-risk Merchant Account Providers in USA: PaymentCloud
PaymentCloud is popular for its personalized approach, particularly suited to high-risk businesses like real estate, healthcare, CBD, and credit repair services. Known for high approval rates (98%), PaymentCloud handles complex merchant situations, including those on the MATCH/TMF list, by providing custom solutions and dedicated customer support. It’s an excellent choice for merchants who value flexibility, personalized advice, and reliable service.
Pricing:
-
Monthly Fee: $10–$45
-
Transaction Fees: Typically between 2.7%–4.3%
-
Chargeback Fee: $25 per incident
Best For:
Merchants seeking flexible solutions, high approval rates, and strong customer support.
Highest Approval Rate: High Risk Pay
High Risk Pay specializes in businesses with credit challenges or historically higher-than-average chargebacks. Known for an exceptionally high approval rate (up to 99%), it offers swift, straightforward account setups, typically within 24 hours. This provider is ideal for businesses looking for low-cost entry and fast approval.
Pricing:
-
Monthly Fee: $9.95
-
Transaction Fees: From 1.79% + 25 cents to 2.95% + 50 cents)
Best For:
Businesses with poor credit or those needing quick approval at an affordable monthly cost.
Great for Businesses with High Chargeback Rates: PayKings
PayKings is a strong choice for businesses experiencing frequent chargebacks, providing advanced tools and proactive strategies to reduce and manage these issues. With extensive experience in e-commerce, subscription services, CBD, and nutraceuticals, PayKings offers high approval rates (up to 99%) and customized payment processing solutions specifically designed to minimize risk.
Pricing:
-
Monthly Fee: $25–$75 (varies based on business)
-
Transaction Fees: Customized based on risk assessment
Best For:
Businesses struggling with high chargeback rates looking for specialized management and mitigation solutions.
Best Between European High-Risk Payment Processors: WebPays
WebPays specializes in serving international businesses with higher-risk profiles, particularly those requiring multi-currency support and global reach. They offer robust security and fraud prevention tools, making them suitable for businesses in forex, gambling, digital services, and crypto transactions. WebPays provides flexible, customizable pricing tailored to each merchant’s specific needs.
Pricing:
Highly customized, pricing available upon request.
Best For:
High-risk businesses operating internationally or in industries like online gambling and cryptocurrency, requiring robust security measures.
Factors to Consider When Choosing Between High-Risk Merchant Account Providers
Approval Speed & Rate
-
Processing Time: Top providers offer decisions within 24-72 hours; others take 1-2 weeks.
-
Approval Probability: Specialized processors achieve 95-98% approval rates for eligible merchants.
-
Documentation: Understand required documentation upfront to prevent delays.
-
Conditional Terms: Evaluate rolling reserves or volume caps against your cash flow needs.
Chargeback Management
-
Prevention Tools: Look for fraud detection, transaction scoring, and 3D Secure implementation.
-
Alert Systems: Early warnings allow you to issue refunds before formal chargebacks occur.
-
Representation Services: Some processors advocate your case to issuing banks to reverse chargebacks.
-
Analytics: Comprehensive reporting helps identify chargeback patterns and root causes.
-
Thresholds: Know the processor’s chargeback tolerance (typically 0.9-2%) and consequences for exceeding it.
Pricing & Fees
-
Models: Compare tiered pricing, interchange-plus, and flat-rate structures against your transaction mix.
-
Fee Components: Evaluate processing rates (2.5-5%), monthly fees, gateway fees, and minimums.
-
Reserves: Most high-risk processors hold 5-15% of your volume for 90-180 days.
-
Contract Terms: Consider commitment length and early termination penalties.
-
Volume Pricing: Negotiate better rates for higher processing volumes.
Simplify Your High-Risk Payment Processing Today
Navigating payment processing as a high-risk merchant doesn’t have to be complicated.
While traditional banks might leave you in the dark, providers like FastoPayments bring clarity, reliability, and peace of mind.
With transparent pricing, cutting-edge fraud protection, and dedicated support, FastoPayments ensures your business can operate smoothly, securely, and confidently, no matter your industry’s complexities.
Get started with FastoPayments.
