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The Best High Risk Merchant Processor

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    With any business these days, you've got to be able to offer your customers different payment solutions. Be it low risk or high risk, the business must be able to offer the customer a payment gateway solution with some security.

    The problem with a high risk merchant account is that its comes with a significant risk. Basically, what that means is that compared to a low risk business type, high risk businesses are much more likely to have things like a bad credit record or a high chargeback rate.

    Thankfully, the high risk merchant still has some pros they can trust with their account. High risk merchant providers do exist but with certain considerations.

    The Characteristics of High Risk Credit Card Processors

    High Risk Merchant Processor

    The merchantshould take some time to study how invested the service provider is. For example, some of the best high risk merchant account services even make use of AI-based technology to get an accurate rate.

    An acquiring bank will always be involved. Think of them as the middlemen handling all those credit cards and debit cards. For their service, they charge a fee.

    High risk merchant account services elicit a higher fee due to the nature of high risk industries. For example, adult entertainment will be considered a high risk business type. Despite that, the high risks merchant still needs to fulfill their business needs.

    In the case of high risk merchant account providers, they include a few other conditions and fees in order to ensure the safety of their business.

    These may include:

    A Rolling Reserve - The rolling reserve is a term used to indicate the use of a reserve account. This is a bank account separate from the business' account which is used by the merchant account provider to ensure transactions at risk of chargebacks.

    Basically, the term rolling reserve describes how a merchant account provider will hold 5%-10% of the revenue in the reserve in case of future chargebacks. You can expect each "roll" to last up to 6 months.

    Augmented Chargeback Fees - Since we mentioned chargebacks, it would be appropriate to point out the increase in the coming chargeback fees. A high chargeback then means that the high risk business is expected to shell out a lot more.

    Augmented Administrative Fees - Since high risk industries cary a lot more risk, even the best merchant account providers will charge higher fees from the start. After all, these account merchants still need to guarantee revenue.

    This is why choosing the right provider matters a lot with these high risk industries. With pros, you can expect the kind of service you might expect from the best low risk merchant account provider, albeit with a higher price tag.

    What to Consider When Looking for High Risk Payment Processing Solutions

    High Risk Credit Card Processors

    With all that being said, there are more than a few easily searchable high risk merchant processors online. The problem now is sifting through all the possible options.

    When we look at it as a payment gateway vs merchant account situation, you'll see why merchant account gets emphasized. Don't let yourself be fooled with offers for a high risk merchant account instant approval guaranteed. Take some time to study the following points.

    Business Model

    A high risk merchant account requires a little more thought due to the inherent risks. Here, the experts will be more apparent. The business model of these high risk merchant processors should be able to match your business needs.

    Security

    Being a provider of high risk merchant services does mean helping you avoid security issues, right? . The processing history of the high risk merchant services should reflect positively on the provider.

    Expertise

    The high risk payment gateway business is not one for beginners. Obtaining the processing history of the business might be able to help gather just how much expertise the business has with high risk industries.

    Flexibility

    How flexible is the high risk merchant processing being offered? Keep an eye on this one as this might indicate the kind of customer service you can expect when problems arise. For example, the adult entertainment industry can carry a different set of risks with lawsuits from a business providing betting and gambling services.

    Transparent Pricing

    Another common trait of those "high risk merchant account instant approval guaranteed" offers is the lack of a published copy of their pricing. At the very least, you should be able to expect a computation model so thay you can judge their servcies. Businesses who aren't transparent with their pricing may be hiding more expensive costs.

    Advanced Technology

    Another common theme with the experts in high risk merchant processing is the ability to integrate technological developments into their process. You'll know when you see it as it's not something they're likely to keep quiet about.

    Responsive Support

    Quality customer support should never be forgotten. Especially with high risk merchants being the way they are, you're going to want to make sure that it will be easy to get in touch with them when issues arise.

    You can check online for reviews on the high risk merchant processors' customer support. This glimpse into their processing history will tell you a lot about the way they treat their high risk clients. Another piece of evidence on why the payment gateway vs merchant account debate should end.

    Top 10 High Risk Payment Processing Solutions

    High Risk Payment Processing Solutions

    1. PaymentCloud

    PaymentCloud is known by its users as an approachable payment gateway for high risk business. That's thanks to their network of acquiring banks, allowing them to find different pricing options for your high risk business.

    2. Durango Merchant Services

    Durango checks a few boxes right out of the box. Great customer support, fair prices, and expertise are all assured if the reviews are to be trusted. You can pin this on their experience as a high risk payment gateway.

    3. Soar Payments

    Working with Soar has that added benefit of getting a free point of sale system. On the administrative side of things, they offer a very competitive option for both low risk and high risk businesses.

    4. SMB Global

    When talking about ecommerce merchants, SMB Global is the most often mentioned. Their business model mostly revolves around providing a merchant account for high risk business internationally, making them appropriate for ecommerce merchants.

    5. eMerchantBroker

    Another e commerce favorite, eMerchant Broker has recently been the favorite of CBD-based industries. Ecommerce merchants for CBD products have found the rates to be fairly reasonable with efficient customer support.

    6. Easy Pay Direct

    High risk credit card processing requires a different set of rules in itself. Easy Pay Direct has been in the businesses of high risk credit card processing since 2000 so you can expect them to know the rules quite well.

    7. Host Merchant Services

    Unlike a lot of the others here, Host Merchant Services is not a high volume, high risk specialist. That being said, their services have been found to be appropriate as a payment gateway for high risk business.

    8. Instabill

    Instabill provides a host of merchant account for high risk business in most categories. In that regard, they can be seen as an exemplar of the best high risk merchant account. That being said, you can expect a proportional fee for that service.

    9. PayKings

    PayKings is another one of these pros who do a little better with CBD companies. This provider of high risk merchant account payment gateway is fairly new on the market but provides a reputable service.

    10. BankCard USA

    While it still deserves its place among those that provide the best high risk merchant account, BankCard USA is still not the most advisable. This is due to their notoriety when it comes to customer service. Be that as it may, it never hurts to have a fallback option.

    Frequently Asked Questions

    What is high risk credit processing?

    Any merchant account high risk or low risk is bound by the abilties of the credit card processor. Not all merchant account providers accept high risk businesses due to their riskier nature.

    Additionally, with both merchant account high risk or low risk the fees are a result of the risks associated with the business. With this, you can expect pricier options.

    What is considered a high risk merchant?

    High risk merchants can include any of the following:

    • Cannabis/CBD businesses
    • Adult entertainment sites
    • Online casinos and
    • Vaping businesses

    These are deemed high risk since the products and services implied are at a higher risk of chargebacks or fraud cases. In this regard, the run-off-the-mill merchant account provider will have a harder time dealing with any issues.

    What is a good effective rate for credit card processing?

    For the most part, you can expect high risk credit card processing companies to offer their services in any of the following models:

    • Tiered
    • Flat-Rate
    • Blended vs. Pass-Through
    • Interchange-Plus
    • Subscription

    Which credit card processing is cheapest for small businesses?

    Due to the nature of high risk credit card processing companies and the businesses they deal with, there is no end-all-be-all solution. The cheapest option may not be the best for your particular business or vice-versa.

    Generally though, the best high risk merchant account payment gateway for small businesses offer a flat rate model at an affordable price. This makes it easier for merchants to plan their expenses.

    Additional Resources

    PCI Security Standards Council, LLC

    The Payment Card Industry Security Standards Council is in charge of establishing the requirements that each business in the industry has to follow. If questionable practices or issues occur, the PCI Security Standards Council must be alerted right away.

    Keep in mind that these factors should remain important whether your business is high risk or low risk. Stay ahead of the curve by proactively doing research on the topic. For more information, check out ProcessingCard.com today.

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