In search of a payment processor that won’t shut you down?
If you’re reading this, you’ve probably been turned down by traditional banks. Your applications have been ignored by payment processors. And the few times you did get approved…
The fees were ridiculous.
Let’s be blunt:
There are so many low-quality high risk merchant account providers out there. It’s hard to know who to trust.
While 90% of online merchants are considered high-risk, many providers market themselves as specialists without actually delivering results. Most are just looking for your business to leave you stranded.
In this guide, you’ll find only the high risk merchant account providers that work. No gimmicks. No jargon. Just the best payment processing companies like 2accept.net, that specialize in expert solutions for high-risk merchant accounts and actually deliver results for high-risk businesses.
Table of Contents
- Why High Risk Merchant Accounts Cost More
- The Top 5 Best High Risk Merchant Account Providers
- How To Lower Your Processing Fees
- What Makes a Provider Worth Your Money
Why Your Business Needs a High Risk Merchant Account
Ok, let’s get real…
If you’re in a high-risk industry, you can’t use a standard merchant account. Fact. It doesn’t matter if you’re in CBD, subscription billing, nutraceuticals — or any of the many other verticals that the banks see as risky.
The fact is:
High-risk businesses have chargeback rates that are over 1%. Most payment processors can’t absorb that without getting in trouble with the card networks.
So, they either reject your application outright. Or they “accept” you, but only offer service with processing fees ranging from 3.5% all the way up to over 10% per transaction. Meanwhile, your low-risk competitors are paying between 3.49%-3.95%.
Don’t accept that.
The right high-risk merchant account provider will make all the difference in your business. Not only will you be able to accept payment and manage your chargebacks without constant fear of getting shut down, you’ll actually be able to grow your business.
Top 5 Best High Risk Merchant Account Providers
Ok, let’s cut through the noise. The following companies deliver when it comes to high-risk payment processing.
1. 2Accept — #1 High Risk Provider Overall
Is there a payment processor that “gets it”?
2Accept takes first place for a reason.
They’ve built their business exclusively around high-risk merchant accounts and industries that other payment processors won’t touch. That includes everything from CBD, to online gaming, to international e-commerce.
Why 2Accept stands out:
They specialize in tailoring a solution that fits your specific industry. They’re not cookie-cutter. The 2Accept team actually takes time to understand your business and industry in order to build a payment processing strategy to support your operations.
Plus, they offer a full range of features, including:
- Advanced fraud prevention
- Chargeback management
- Multi-currency processing
- Offshore merchant accounts
- Dedicated account managers
Best of all, they have competitive processing rates that won’t bleed your profit margins dry. While most high-risk providers charge sky-high premium rates, 2Accept works with you to find pricing that makes sense.
2. PaymentCloud — Top for Approval Rate and Flexibility
PaymentCloud has built a solid reputation as one of the most flexible high-risk merchant providers on the market.
Check out their numbers: 98% approval rate and processing set up within 48 hours. Even merchants on the MATCH list are approved.
The standout feature of PaymentCloud is their “hands-on” approach. You get a dedicated account manager from the application process through onboarding. And you get to use any payment gateway you want.
Processing rates are 2.7%-4.3% for high-risk merchants. Reasonable compared to industry standards.
3. Durango Merchant Services — High Risk Payment Processor for the Hard-to-Place Merchant
Applicant/rejected everywhere else? You may want to check out Durango.
Durango Merchant Services has been around for years and has a strong track record with merchants who have bad credit or otherwise can’t be classified. This includes tough industries like payday loans, MLM companies, and adult content.
Partnerships with international banks give them a higher chance of placement. And they work with you to customize pricing for your risk profile.
4. Host Merchant Services — Reliable E-Commerce Processing
Host Merchant Services provides reliable high-risk payment processing for e-commerce businesses.
Host Merchant Services offers electronic payment processing with good customer support and competitive rates. Integration with popular shopping carts and payment gateways is a plus.
If you run an online store in industries like e-cigarettes, airlines, or pawn shops, Host Merchant Services is a great choice.
5. HighRiskPay — Good for Fast Approval Times
HighRiskPay lives up to its name with a 99% approval rating and approvals in as fast as 24 hours.
HighRiskPay works with companies that have bad credit history and offer strong chargeback prevention tools. Plus, next day funding can help with cash flow.
Retail credit card terminal included for qualifying merchants for free.
What Makes the Best High Risk Merchant Account Provider?
Not all high-risk providers are created equal. Here are a few factors to consider before choosing…
Industry Expertise
It’s not a sexy-sounding criterion, but industry expertise is key when it comes to the best high-risk merchant account providers. You want someone who gets your specific industry.
Generic high-risk processors are okay, but they won’t be able to provide the kind of guidance and specialized services that a more focused provider will. Ask for examples of similar businesses that the provider has worked with successfully.
Transparent Pricing
Hidden fees will ruin your business.
The best providers will be completely upfront about pricing. Setup fees, monthly fees, transaction fees, chargeback fees, everything. Should be clearly spelled out. No fine print, no surprises.
You should be able to get a detailed quote before you sign up.
Chargeback Management
Chargebacks are one of the biggest problems for high-risk businesses. And they can cost you anywhere from $10-$100 each.
Make sure your provider has solid chargeback prevention tools and support. Fraud detection, alerts, dispute management. All the bells and whistles that make it easier to manage chargebacks.
Flexible Contract Terms
Terrible early termination fees and long contracts that lock you in for years are a huge red flag.
The best providers offer month-to-month contracts or at least reasonable early termination fees. It should never be more than a month of processing fees.
Make sure you understand all the contract terms before you sign. Negotiate if needed.
Responsive Customer Support
When you get your account flagged or if you have an urgent issue, you want responsive 24/7 customer support. Not a ticket system that takes days to get back to you.
Ask if the provider offers dedicated account managers. A direct point of contact can make all the difference.
How To Lower Your High Risk Processing Fees
How do you save on fees as a high-risk business?
Keep a close eye on your chargeback ratio and keep it under 1%. Most providers will work with you on better rates if you can demonstrate that your chargebacks are under control.
Maintain clean financial records. Providers look at your credit history and business finances. The cleaner your books, the better terms you’ll get.
Build a processing history. After 6-12 months of clean processing, you can try negotiating with your provider for lower rates. Many will renegotiate after you’ve proven your stability.
Be careful with rolling reserves. Some providers hold 5-15% of your sales for 6 months to a year. This is called “rolling reserves.” The hold protects the provider if your account gets hit with chargebacks. But it restricts your access to cash. Try negotiating this requirement.
Wrapping Things Up
Finding the right high risk merchant account provider is all about finding a partner that specializes in your industry and offers transparent pricing.
Don’t just accept the first provider that approves you. Compare pricing from a few different providers. Read all the contract details carefully. Ask about any fees that aren’t explicitly stated.
With payment fraud losses expected to exceed $200 billion in 2024, the right high-risk provider isn’t a luxury, it’s a necessity.
The top recommendation for high risk merchant account providers? Start with 2Accept. Their focus on industry expertise and tailored solutions make them the best choice for most high-risk businesses.
Remember… Finding the right provider is the smartest decision you can make. The right one will help your business grow, not hold you back.
