Struggling to get a standard merchant account? Facing one rejection after another? Normally, when trying to get a payment processing account, you should be given the reasons why you’re rejected. If you know nothing, chances are your business or industry is labeled as high risk.
Certain industries are seen as high risk, meaning they’re less likely to be accepted by traditional banking institutions. Don’t worry, it doesn’t mean you’ll never be able to take card or online payments, you just need to dig deeper.
There are less providers out there, indeed, but high risk payment processing vendors have never been more popular. They’ve been around for decades and can cater to a series of different industries and business sectors.
However, as you’re seen as high risk, this means your options are limited. Plus, there’s a decent chance you’ll pay more in fees and rates.
With these aspects in mind, let’s go through the basics of finding a high risk payment processing vendor, as well as the top rated options on the market.
A high risk payment processing account is practically a business service allowing companies to take payments online, as well as debit and credit card payments. The service is specifically aimed at businesses considered riskier than normal.
There are more reasons wherefore such an industry could be targeted. For example, financial instability is one of them. A history of frauds could also be a reason, not to mention a history of chargebacks or perhaps a poor credit score.
Most of these problems are caused by highly regulated products and services, intangible products, services dealing with questionable clients, volatile businesses, wonder solutions in the healthcare industry, new products that haven’t been proven yet and so on.
Based on these ideas, some of the most popular high risk industries include:
At this point, there aren’t many options left.
One of your options implies dealing in-person with cash only. If you sell healthcare products to the local community, that could work. And although there are less and less people carrying cash these days, the truth is there are lots of local businesses out there dealing with cash only.
The second option gives you access to a more diversified market and implies getting a high risk payment processing account. Dealing with local products could bypass the necessity of such an account, but taking online orders will require it.
The problem with high risk payment processing vendors is that you’ll most likely have to pay higher fees than in traditional banks. That’s because of the risk you carry. It doesn’t mean that you have a bad reputation, but these vendors have already suffered from helping similar businesses in the past.
Therefore, they’ll keep their fees and rates higher to cover their potential expenses too.
Other than that, as part of a high risk industry, chances are you’ll need to go through more scrutiny in order to benefit from merchant services.
Different vendors have different requirements and services. Some of them are specialized in online services only. Others support in-person card payments or both. They come with different software integrations or tools for fraud or chargeback management.
At the same time, a rolling reserve may also be required. Such money is stored in case of unexpected situations, such as a chargeback.
No matter which company you pick for support, make sure you go through all of its features. Understand what you’re getting and what it costs you, but also ensure those features match your actual business necessities.
From many points of view, a high risk payment processing vendor is, indeed, considered an extra expense. Rates are higher, you’ll have to pay for every transaction and most of them have some sort of monthly maintenance fees as well.
It makes sense to ask yourself, do you really need one?
Believe it or not, not every high risk company needs one. It normally depends on the business sector you operate in, but also your history of transactions.
For instance, if you’re doing business locally, you can ask people to bring cash only. There are certain sectors known for operating with cash only. For instance, all over Europe, most Chinese food takeaways tend to ask for cash only, while most other takeaways take card payments too.
If all of your customers are locals, you don’t necessarily need a high risk payment processing account, yet it might help.
At the end of the day, there aren’t too many people carrying cash these days. This means asking for cash only is a bit of an inconvenience, as people need to find the nearest ATM to get cash.
While this aspect might put some potential customers off, it depends on how good you are in business. If you offer a unique product or service, people will make the effort to get cash. If there are plenty of alternatives, you’ll lose some customers there.
On a different note, if you sell things online, chances are you have customers from all over the area, country or even world. In such cases, you can’t ask people to bring cash personally. Without a high risk payment processing account, your operations will most likely be null.
There are a few alternatives too, such as online payment platforms, but you won’t be able to take card payments. Instead, you’ll only be able to provide an email address and ask people to send money over. Not everyone may use the same platform, so once again, it’s an inconvenience.
Generally speaking, if you’re part of a high risk business sector and you don’t deal locally only, chances are you need a payment processor.
Even if you’re not 100% sure whether or not you’re part of a high risk industry, if your account has been terminated by a more mainstream processor, chances are you’re considered high risk, so you’ll have to look elsewhere for support.
Fortunately, there are quite a few options out there. First we’ll check out the best option and then see how it stacks up against the others.
The high risk merchant account at highriskpay.com is one of the most popular recommendations popping up while you do your research. It’s a popular name in the high risk industry, with an active focus on numerous industries that are normally rejected by traditional banks.
The company has more than 25 years of experience in dealing with industries wrongfully labeled by different banks. Its current name has been in use since 2008 only, but mainly because it went through a rebranding process prior to that.
Some of the supported sectors include:
Whether approved or rejected, applications are normally checked within hours only. While some extra documentation might be required in certain situations, most applicants will get a decision within 24 hours only.
Unlike other similar platforms, whether you need a travel or CBD payment processor, highriskpay.com has no setup fees. This is a major benefit over other similar alternatives because most of them charge on average $10 to $50.
While it’s not the most significant cost in the world, it’s an unnecessary expense that no one really needs, so High Risk Pay doesn’t have it.
There are no fees to apply either. While applications are free, most vendors charge for the actual processing part. No such thing with High Risk Pay!
Rates can be as low as 1.79%, depending on the industry and volume. Transaction fees are $0.25 for most industries. As for the monthly fee, it’s just under $10.
From this point of view, you’ll gain access to a few fraud detection and prevention tools, which can reduce your expenses.
Other than that, there are a few software integrations to help with your online payment process, such as checkouts.
Some of the main industries supported by Helcim include healthcare, automotive, home services, education or wholesale. The company is specialized in both low and high risk industries, meaning there’s a chance you may get accepted, but also rejected. Each application is processed individually.
Solutions are quite varied and include POS devices, invoicing, virtual terminals, online checkout services, card readers and a few other business and inventory tools. There are numerous options to cover everything about your business, but there’s a catch here.
Make sure you only get the things you truly need, as costs to add up. Sure, some things might be nice to have, but if you don’t really need them, make sure your custom package doesn’t include such bells and whistles.
Prices vary widely for in-person and online payments, fees ranging between 1% and 3.01%, along with extra fees and monthly maintenance. Overall, High Risk Pay offers lower prices and on top of that, it’s actually specialized in high risk industries only.
The high risk focus also ensures more dedicated support.
When it comes to extras, bells and whistles, Helcim offers a wider variety of devices and integration tools, but many of them are there to grab attention and money. For example, there are many other integrated tools for inventory management and many of them are available for free, so that would be unnecessary.
Payment plans can be a bit confusing because they depend on so many small things that you’ll have to wait for your offer before making a decision. The customer service is available Monday to Saturday by phone, mail or a ticket system.
Helcim has an interesting section for resources and educational guides, which could be quite helpful for those who are just getting familiar with such systems. Furthermore, it gives customers the option to make some money by referring others.
High Risk Pay and Payid19 have one thing in common. They both offer access to payments in different currencies, with some of the most popular fiat currencies including USD, EUR, JPY, GBP, CAD, AUD, CHF or TRY, among many others.
Compared to High Risk Pay, Payid19 has a major advantage and a serious disadvantage.
Let’s start with the positive side. Payid19 offers cryptocurrency access. You can’t take any kind of crypto payment though, but only in a few popular coins. For instance, you can have payment processing in USD Tether, Bitcoin, Litecoin, Ethereum, Tron and BNB.
Payid19 offers different special offers every now and then. For example, there may be no fees for crypto payments lower than $1. These offers vary widely, so it pays off double checking upfront. If you could take advantage and save some money, why not?
Now, moving on to the negative side, Payid19 is not necessarily specialized in high risk payment processing.
Simply put, the high risk payment processor highriskpay.com works with high risk industries only. It’s the main specialization for a few decades already, so you know precisely what to expect. There are a few tool integrations that can also help high risk businesses, which is a serious plus.
This means Payid19 could accept or reject your high risk business. Each application is individual, so there are no guarantees whatsoever. The specialization goes in a different direction and that’s crypto.
With all these, some of the industries advertised include finance, online retail, ecommerce, freelancing or games, which are often considered high risk.
The lowest commission rate is 1% for a minimum of 0.2USDT.
Other than that, it’s worth noting the fact that businesses have no limits for payout amounts. Privacy and security standards are pretty high too, so there are no reports about potential hacking or fraud issues.
At a first glance, Moropay looks like a good option for high risk payment processing. It offers customer support from an office based in the UK, seven days a week. Payments can be taken online or in-person through a terminal. Getting paid takes around 48 hours, not bad, but not great either.
Fees start at 1.4%. They vary based on the nature of the business, the industry you activate in, not to mention the volume of transactions. Like high risk merchant highriskpay com, each package is customized to offer a more realistic deal. Basically, you should pay for what you actually need.
Moropay works with both low and high risk businesses. While this is a good idea, it means the processor isn’t necessarily specialized in high risk industries, so the focus is more general. It’s not necessarily a bad thing, so the vendor is worth some consideration. After all, the application is free.
Now, what makes Moropay different is the way it actually works.
From many points of view, it can be seen as a search engine for high risk payment processing vendors. The platform has partnered up with numerous providers, so it tries to find the best possible deals for you based on your business details.
While some services seem to be offered in-house, it looks like others are outsourced. Partners listed on the main page are reputable brands, but also the type of brands that mainly work with low risk industries. Moropay isn’t 100% transparent about how it works, so you may need to get in touch for more details.
At the same time, the platform gives out the minimum pay fees, but that’s it. Again, starting an application could be the only way to figure out how much this could actually cost you. It’s understandable, since everything is customized, but you’d still like to have some clues.
High Risk Rocks is similar to High Risk Pay in terms of services. It offers relatively quick results on applications and it has a high approval rate. It has some solid security measures in place, as well as a few software integrations.
The company is specialized in high risk businesses and that’s a good thing. Basically, they only work with firms that are normally rejected by traditional banking institutions. However, it’s mainly aimed at businesses in online casino, crypto, dating and adult industries.
If you deal with CBD products or you run a travel agency, you might be rejected. There are no official statements about these, so it could be worth a try. After all, applications are free and won’t require too much time. Provide a few details and someone will get in touch with you for a personalized offer.
High Risk Pay, on the other hand, offers a broader approach and covers businesses from many more industries.
Unlike other companies, High Risk Rocks also clears some of the issues associated with high risk processors. In other words, you won’t have to pay any monthly fees for maintenance and there are no setup fees either.
The location of your business is irrelevant because the coverage is global.
On top of all these, High Risk Rocks advertises low rates and fees, but they’re not too transparent. There’s not much information about these things on the official website, so it’s hard to determine whether it’s worth it or not.
Each application features individualized quotes and that’s what makes it difficult to estimate your potential costs in the process.
Processing Partners advertises to offer global payment solutions. The company can give you the benefit of numerous currencies over a single account, meaning you can take payments from anyone, anywhere, whether online or in-person. It sounds like the perfect scenario so far, but let’s dig deeper.
Aimed at high risk industries, Processing Partners seems to work with businesses in a few different sectors. The portal advertises online dating, travel, health, retail, gambling, sports betting and skill games. Other industries may or may not be accepted. If you’re in a different sector, get in touch and ask.
The technology is one of the strong points here because there are a few integrations you can take advantage of. ACI, basic PCI compliance, single API, fraud management, chargeback management, transaction monitoring and mobile billing are just a few of them.
Make sure to pay for what you need only, rather than all kinds of bells and whistles. That’s why it’s a good idea to assess your business needs upfront.
Services are just as varied and include risk management, prepaid card issuing or network tokens. Again, it may feel a bit too much when you’re only after high risk payment processing. The same applies to the solutions offered.
Processing Partners looks like it can offer more services than High Risk Pay, but at the same time, it’s a jack of all trades, offering access to all sorts of extras you may not necessarily need.
It does have some useful services and integrations, but you can’t really see a focus on high risk payment processing. Instead, this seems to be just one of the numerous services offered.
Given the wide variety of services and solutions, there’s no transparency regarding rates and fees whatsoever, so you’d have to start an application or get in touch to have some clues. There aren’t many reviews to help you get an idea either.
ProcessingU may not be the oldest or most recognized name in the high risk payment processing industry, but it’s definitely worth some attention. The company aims to keep things simple by focusing on what’s important, rather than trying to sell all kinds of random bells and whistles.
Everything in your package will be customized, similar to the high risk merchant account high-riskpay.com. Basically, there are no general things. Your volume of transactions, sales, type of business or location could affect the final package deal, so you’ll have to provide all these details.
Some of the general services offered by ProcessingU include subscriptions, ecommerce tools, retail devices for payment processing and mobile support. Chargeback management is also an option, not to mention risk monitoring and fraud prevention. Custom payment links are offered too.
When it comes to POS systems for in-person processing, customers can connect their own tools with over 100 integrations. Payments can be saved, automated or scheduled, but data access is also easy to organize for financial planning.
There are more options regarding the device you may need, so you’ll need to do a bit of research.
ProcessingU keeps things simple, but there’s some secrecy about the fees and rates. While every provider out there offers a deeply customized package to ensure full support, most of them offer some ideas about what to expect.
With ProcessingU, you have no idea whether you’ll pay 1% or 5%. You don’t know if you’re about to be hit with monthly payments or if there’s a fee for the initial setup or application. Inquiring about it won’t hurt though, so it might be worth starting an application, just to see what you might get.
There aren’t too many reviews about it either. The company claims to have more than seven years of experience, which is a bit suspicious considering it’s nearly impossible to find any reviews.
Like for anything else, be cautious before making any payments. It could be reliable and trustworthy, but use your instincts too.
Similarly to High Risk Pay, The Payment HQ offers a more transparent approach, so you’ll know exactly what you’ll get and what you may end up paying. Again, the package you’ll get will be customized, so your fees and rates could be different, whether lower or higher.
The Payment HQ isn’t necessarily focused on high risk payment processing though. The company is mainly focused on the retail industry and that includes restaurants, convenience stores, medical offices and services.
There is, however, a special category for high risk industries, which aims to provide specialized support. In terms of high risk payment processing, the package is customized. You can use the rates to get some clues, but chances are you’ll get something different. Most likely, higher fees due to the high risk.
To help you get an idea, there are three main packages. The free one has rates between 2.69% and 3.49%, but that’s for general businesses. The high risk will put these fees way above High Risk Pay or other similar providers.
Some other plans can cost as much as $99.95 for regular businesses.
API integrations are quite varied and depend on what you need. For that kind of money, you would expect something extraordinary, but you’ll find the same integrations that come with High Risk Pay or other providers.
Other than that, The Payment HQ has partnerships with different companies for display systems, multiple card readers and devices. At least you have a few options when it comes to choosing the right devices.
Generally speaking, an application for a high risk payment processing account shouldn’t take more than a few minutes. What takes longer is the actual research of different vendors. The initial application usually asks for a series of details about your company before someone can get in touch with you.
If you get approved, the provider you pick will ask you for further documentation. Based on where you live and the vendor’s requirements, you may have to provide the certificate of incorporation, bank statements, copies of valid IDs, a structure chart, maybe a shareholders’ certificate and potential licenses too.
Your processing history is just as important. Some high risk payment processing providers avoid new companies simply because they can’t provide accurate estimates regarding the number of transactions, volume or chargebacks.
Small details can sometimes make the difference for your application. For example, chances are you have a website as well. Here are a few small bits to pay attention to before submitting your application:
Apart from boosting your website, there are other techniques you can consider to improve your success rate and optimize your application.
As a general rule of thumb, high risk payment processing companies tend to charge more than those dealing with low risk industries. It’s easy to understand why. More risks will cost more, as it can affect the provider’s reputation and operation.
Understanding the most common fees and rates will help you get an idea about what to expect.
Normally, these fees can be around 4%, but providers like High Risk Pay offer way less than that. Other than that, you can also see fees like 2% and 0.2$ per transaction.
On average, if you find a provider with this requirement, expect about 15% of your transaction revenue going to this fund. It’s a big chunk of your profit, but it’s not an actual fee or expense.
Setup fees vary widely from one vendor to another and can be around $50.
These maintenance fees could also come with discounts, especially if you pay them annually. Such discounts vary from one vendor to another.
Some of these fees only target industries like adult entertainment or gambling.
Businesses in high risk industries face a few more h0075rdles than businesses in low risk industries. Most of these risks end up affecting their profits.
Now, apart from these challenges, what kind of solutions do you have? Here are a few useful ideas to ensure you’ll be able to take card and online payments quicker than normally.
For example, lowering the chargeback percentage will give you a better image in front of high risk payment processing vendors. At the same time, upping your credit score will certainly help, even if providers don’t necessarily look at it.
Opt for fraud protection as well if a provider offers this feature.
Another option would be to take crypto only, but you’ll need something similar too.
Believe it or not, even operating in an approved history could lead to similar restrictions. For example, being listed in the MATCH database can prevent many providers from accepting you.
The best thing to do in this situation is to start building a processing history, work on other aspects like the credit score and try again later.
Launching a new business with a different name may also help ditching the MATCH lists.
As a final conclusion, high risk payment processing can be a complex and confusing industry. Unless you can stick to cash only, such an account becomes an actual necessity, so you’ll need to find a way to get in.
There are more factors that can determine your risk, fees, rates and approval rate. While it may seem challenging, the good news is you can normally make changes to increase your chances.
The concept behind the industry is to provide everyone the possibility to take online and card payments, whether over the Internet or in-person. Despite the challenges associated with your high risk profile, you do have options, but you’ll have to research everything upfront.
Certain industries are seen as high risk, meaning they’re less likely to be accepted by traditional banking institutions. Don’t worry, it doesn’t mean you’ll never be able to take card or online payments, you just need to dig deeper.
There are less providers out there, indeed, but high risk payment processing vendors have never been more popular. They’ve been around for decades and can cater to a series of different industries and business sectors.
However, as you’re seen as high risk, this means your options are limited. Plus, there’s a decent chance you’ll pay more in fees and rates.
With these aspects in mind, let’s go through the basics of finding a high risk payment processing vendor, as well as the top rated options on the market.
What's a High Risk Payment Processing Account?
A high risk payment processing account is practically a business service allowing companies to take payments online, as well as debit and credit card payments. The service is specifically aimed at businesses considered riskier than normal.
There are more reasons wherefore such an industry could be targeted. For example, financial instability is one of them. A history of frauds could also be a reason, not to mention a history of chargebacks or perhaps a poor credit score.
Most of these problems are caused by highly regulated products and services, intangible products, services dealing with questionable clients, volatile businesses, wonder solutions in the healthcare industry, new products that haven’t been proven yet and so on.
Based on these ideas, some of the most popular high risk industries include:
- Adult entertainment
- Alcohol
- CBD
- Credit repair
- Debt management
- Crypto
- Gaming
- Gambling
- Insurance
- Payday loans
- Tobacco
- Travel
At this point, there aren’t many options left.
One of your options implies dealing in-person with cash only. If you sell healthcare products to the local community, that could work. And although there are less and less people carrying cash these days, the truth is there are lots of local businesses out there dealing with cash only.
The second option gives you access to a more diversified market and implies getting a high risk payment processing account. Dealing with local products could bypass the necessity of such an account, but taking online orders will require it.
The problem with high risk payment processing vendors is that you’ll most likely have to pay higher fees than in traditional banks. That’s because of the risk you carry. It doesn’t mean that you have a bad reputation, but these vendors have already suffered from helping similar businesses in the past.
Therefore, they’ll keep their fees and rates higher to cover their potential expenses too.
Other than that, as part of a high risk industry, chances are you’ll need to go through more scrutiny in order to benefit from merchant services.
Different vendors have different requirements and services. Some of them are specialized in online services only. Others support in-person card payments or both. They come with different software integrations or tools for fraud or chargeback management.
At the same time, a rolling reserve may also be required. Such money is stored in case of unexpected situations, such as a chargeback.
No matter which company you pick for support, make sure you go through all of its features. Understand what you’re getting and what it costs you, but also ensure those features match your actual business necessities.
Do I Need a High Risk Payment Processing Account?
Whether you run a new business or your business is small and doesn’t have an impressive revenue, you’re probably thinking about ways to actually save money and grow a little, rather than spend some more.From many points of view, a high risk payment processing vendor is, indeed, considered an extra expense. Rates are higher, you’ll have to pay for every transaction and most of them have some sort of monthly maintenance fees as well.
It makes sense to ask yourself, do you really need one?
Believe it or not, not every high risk company needs one. It normally depends on the business sector you operate in, but also your history of transactions.
For instance, if you’re doing business locally, you can ask people to bring cash only. There are certain sectors known for operating with cash only. For instance, all over Europe, most Chinese food takeaways tend to ask for cash only, while most other takeaways take card payments too.
If all of your customers are locals, you don’t necessarily need a high risk payment processing account, yet it might help.
At the end of the day, there aren’t too many people carrying cash these days. This means asking for cash only is a bit of an inconvenience, as people need to find the nearest ATM to get cash.
While this aspect might put some potential customers off, it depends on how good you are in business. If you offer a unique product or service, people will make the effort to get cash. If there are plenty of alternatives, you’ll lose some customers there.
On a different note, if you sell things online, chances are you have customers from all over the area, country or even world. In such cases, you can’t ask people to bring cash personally. Without a high risk payment processing account, your operations will most likely be null.
There are a few alternatives too, such as online payment platforms, but you won’t be able to take card payments. Instead, you’ll only be able to provide an email address and ask people to send money over. Not everyone may use the same platform, so once again, it’s an inconvenience.
Generally speaking, if you’re part of a high risk business sector and you don’t deal locally only, chances are you need a payment processor.
Even if you’re not 100% sure whether or not you’re part of a high risk industry, if your account has been terminated by a more mainstream processor, chances are you’re considered high risk, so you’ll have to look elsewhere for support.
Fortunately, there are quite a few options out there. First we’ll check out the best option and then see how it stacks up against the others.
HighRiskPay.com Review
The high risk merchant account at highriskpay.com is one of the most popular recommendations popping up while you do your research. It’s a popular name in the high risk industry, with an active focus on numerous industries that are normally rejected by traditional banks.
The company has more than 25 years of experience in dealing with industries wrongfully labeled by different banks. Its current name has been in use since 2008 only, but mainly because it went through a rebranding process prior to that.
Industries Served
The high risk merchant highriskpay.com has numerous specializations in terms of industries and sectors supported. Pretty much every high risk payment processing vendor will have a few specializations, but High Risk Pay takes it a bit further.Some of the supported sectors include:
- Adult
- Bad credit
- CBD
- Subscription
- Electronic cigarettes
- High volume
- Electronic commerce
- Travel
- Startup
Approval Rate
Given the general focus on anything that’s high risk, High Risk Pay has an impressive approval rate of about 99%. Basically, it would take a lot for a company to be rejected. Unless proven to be involved in crime or under an official investigation, there are no feasible reasons to be rejected.Whether approved or rejected, applications are normally checked within hours only. While some extra documentation might be required in certain situations, most applicants will get a decision within 24 hours only.
Fees and Rates
Every high risk payment processing platform out there will be pricier than a traditional bank, but there are big differences from one vendor to another too.Unlike other similar platforms, whether you need a travel or CBD payment processor, highriskpay.com has no setup fees. This is a major benefit over other similar alternatives because most of them charge on average $10 to $50.
While it’s not the most significant cost in the world, it’s an unnecessary expense that no one really needs, so High Risk Pay doesn’t have it.
There are no fees to apply either. While applications are free, most vendors charge for the actual processing part. No such thing with High Risk Pay!
Rates can be as low as 1.79%, depending on the industry and volume. Transaction fees are $0.25 for most industries. As for the monthly fee, it’s just under $10.
Tools and Integrations
High risk credit card processing highriskpay.com has never been easier because the platform offers a few tools to support the things that make your business high risk.From this point of view, you’ll gain access to a few fraud detection and prevention tools, which can reduce your expenses.
Other than that, there are a few software integrations to help with your online payment process, such as checkouts.
Credit Score
The credit score is irrelevant when getting an account with High Risk Pay. Whether you have a good score, a bad score or no score at all, it makes no difference whatsoever.High Risk Pay Vs. Helcim
Some of the main industries supported by Helcim include healthcare, automotive, home services, education or wholesale. The company is specialized in both low and high risk industries, meaning there’s a chance you may get accepted, but also rejected. Each application is processed individually.
Solutions are quite varied and include POS devices, invoicing, virtual terminals, online checkout services, card readers and a few other business and inventory tools. There are numerous options to cover everything about your business, but there’s a catch here.
Make sure you only get the things you truly need, as costs to add up. Sure, some things might be nice to have, but if you don’t really need them, make sure your custom package doesn’t include such bells and whistles.
Prices vary widely for in-person and online payments, fees ranging between 1% and 3.01%, along with extra fees and monthly maintenance. Overall, High Risk Pay offers lower prices and on top of that, it’s actually specialized in high risk industries only.
The high risk focus also ensures more dedicated support.
When it comes to extras, bells and whistles, Helcim offers a wider variety of devices and integration tools, but many of them are there to grab attention and money. For example, there are many other integrated tools for inventory management and many of them are available for free, so that would be unnecessary.
Payment plans can be a bit confusing because they depend on so many small things that you’ll have to wait for your offer before making a decision. The customer service is available Monday to Saturday by phone, mail or a ticket system.
Helcim has an interesting section for resources and educational guides, which could be quite helpful for those who are just getting familiar with such systems. Furthermore, it gives customers the option to make some money by referring others.
High Risk Pay Vs. Payid19
High Risk Pay and Payid19 have one thing in common. They both offer access to payments in different currencies, with some of the most popular fiat currencies including USD, EUR, JPY, GBP, CAD, AUD, CHF or TRY, among many others.
Compared to High Risk Pay, Payid19 has a major advantage and a serious disadvantage.
Let’s start with the positive side. Payid19 offers cryptocurrency access. You can’t take any kind of crypto payment though, but only in a few popular coins. For instance, you can have payment processing in USD Tether, Bitcoin, Litecoin, Ethereum, Tron and BNB.
Payid19 offers different special offers every now and then. For example, there may be no fees for crypto payments lower than $1. These offers vary widely, so it pays off double checking upfront. If you could take advantage and save some money, why not?
Now, moving on to the negative side, Payid19 is not necessarily specialized in high risk payment processing.
Simply put, the high risk payment processor highriskpay.com works with high risk industries only. It’s the main specialization for a few decades already, so you know precisely what to expect. There are a few tool integrations that can also help high risk businesses, which is a serious plus.
This means Payid19 could accept or reject your high risk business. Each application is individual, so there are no guarantees whatsoever. The specialization goes in a different direction and that’s crypto.
With all these, some of the industries advertised include finance, online retail, ecommerce, freelancing or games, which are often considered high risk.
The lowest commission rate is 1% for a minimum of 0.2USDT.
Other than that, it’s worth noting the fact that businesses have no limits for payout amounts. Privacy and security standards are pretty high too, so there are no reports about potential hacking or fraud issues.
High Risk Pay Vs. Moropay
At a first glance, Moropay looks like a good option for high risk payment processing. It offers customer support from an office based in the UK, seven days a week. Payments can be taken online or in-person through a terminal. Getting paid takes around 48 hours, not bad, but not great either.
Fees start at 1.4%. They vary based on the nature of the business, the industry you activate in, not to mention the volume of transactions. Like high risk merchant highriskpay com, each package is customized to offer a more realistic deal. Basically, you should pay for what you actually need.
Moropay works with both low and high risk businesses. While this is a good idea, it means the processor isn’t necessarily specialized in high risk industries, so the focus is more general. It’s not necessarily a bad thing, so the vendor is worth some consideration. After all, the application is free.
Now, what makes Moropay different is the way it actually works.
From many points of view, it can be seen as a search engine for high risk payment processing vendors. The platform has partnered up with numerous providers, so it tries to find the best possible deals for you based on your business details.
While some services seem to be offered in-house, it looks like others are outsourced. Partners listed on the main page are reputable brands, but also the type of brands that mainly work with low risk industries. Moropay isn’t 100% transparent about how it works, so you may need to get in touch for more details.
At the same time, the platform gives out the minimum pay fees, but that’s it. Again, starting an application could be the only way to figure out how much this could actually cost you. It’s understandable, since everything is customized, but you’d still like to have some clues.
High Risk Pay Vs. High Risk.Rocks
High Risk Rocks is similar to High Risk Pay in terms of services. It offers relatively quick results on applications and it has a high approval rate. It has some solid security measures in place, as well as a few software integrations.
The company is specialized in high risk businesses and that’s a good thing. Basically, they only work with firms that are normally rejected by traditional banking institutions. However, it’s mainly aimed at businesses in online casino, crypto, dating and adult industries.
If you deal with CBD products or you run a travel agency, you might be rejected. There are no official statements about these, so it could be worth a try. After all, applications are free and won’t require too much time. Provide a few details and someone will get in touch with you for a personalized offer.
High Risk Pay, on the other hand, offers a broader approach and covers businesses from many more industries.
Unlike other companies, High Risk Rocks also clears some of the issues associated with high risk processors. In other words, you won’t have to pay any monthly fees for maintenance and there are no setup fees either.
The location of your business is irrelevant because the coverage is global.
On top of all these, High Risk Rocks advertises low rates and fees, but they’re not too transparent. There’s not much information about these things on the official website, so it’s hard to determine whether it’s worth it or not.
Each application features individualized quotes and that’s what makes it difficult to estimate your potential costs in the process.
High Risk Pay Vs. Processing Partners
Processing Partners advertises to offer global payment solutions. The company can give you the benefit of numerous currencies over a single account, meaning you can take payments from anyone, anywhere, whether online or in-person. It sounds like the perfect scenario so far, but let’s dig deeper.
Aimed at high risk industries, Processing Partners seems to work with businesses in a few different sectors. The portal advertises online dating, travel, health, retail, gambling, sports betting and skill games. Other industries may or may not be accepted. If you’re in a different sector, get in touch and ask.
The technology is one of the strong points here because there are a few integrations you can take advantage of. ACI, basic PCI compliance, single API, fraud management, chargeback management, transaction monitoring and mobile billing are just a few of them.
Make sure to pay for what you need only, rather than all kinds of bells and whistles. That’s why it’s a good idea to assess your business needs upfront.
Services are just as varied and include risk management, prepaid card issuing or network tokens. Again, it may feel a bit too much when you’re only after high risk payment processing. The same applies to the solutions offered.
Processing Partners looks like it can offer more services than High Risk Pay, but at the same time, it’s a jack of all trades, offering access to all sorts of extras you may not necessarily need.
It does have some useful services and integrations, but you can’t really see a focus on high risk payment processing. Instead, this seems to be just one of the numerous services offered.
Given the wide variety of services and solutions, there’s no transparency regarding rates and fees whatsoever, so you’d have to start an application or get in touch to have some clues. There aren’t many reviews to help you get an idea either.
High Risk Pay Vs. ProcessingU
ProcessingU may not be the oldest or most recognized name in the high risk payment processing industry, but it’s definitely worth some attention. The company aims to keep things simple by focusing on what’s important, rather than trying to sell all kinds of random bells and whistles.
Everything in your package will be customized, similar to the high risk merchant account high-riskpay.com. Basically, there are no general things. Your volume of transactions, sales, type of business or location could affect the final package deal, so you’ll have to provide all these details.
Some of the general services offered by ProcessingU include subscriptions, ecommerce tools, retail devices for payment processing and mobile support. Chargeback management is also an option, not to mention risk monitoring and fraud prevention. Custom payment links are offered too.
When it comes to POS systems for in-person processing, customers can connect their own tools with over 100 integrations. Payments can be saved, automated or scheduled, but data access is also easy to organize for financial planning.
There are more options regarding the device you may need, so you’ll need to do a bit of research.
ProcessingU keeps things simple, but there’s some secrecy about the fees and rates. While every provider out there offers a deeply customized package to ensure full support, most of them offer some ideas about what to expect.
With ProcessingU, you have no idea whether you’ll pay 1% or 5%. You don’t know if you’re about to be hit with monthly payments or if there’s a fee for the initial setup or application. Inquiring about it won’t hurt though, so it might be worth starting an application, just to see what you might get.
There aren’t too many reviews about it either. The company claims to have more than seven years of experience, which is a bit suspicious considering it’s nearly impossible to find any reviews.
Like for anything else, be cautious before making any payments. It could be reliable and trustworthy, but use your instincts too.
High Risk Pay Vs. The Payment HQ
Similarly to High Risk Pay, The Payment HQ offers a more transparent approach, so you’ll know exactly what you’ll get and what you may end up paying. Again, the package you’ll get will be customized, so your fees and rates could be different, whether lower or higher.
The Payment HQ isn’t necessarily focused on high risk payment processing though. The company is mainly focused on the retail industry and that includes restaurants, convenience stores, medical offices and services.
There is, however, a special category for high risk industries, which aims to provide specialized support. In terms of high risk payment processing, the package is customized. You can use the rates to get some clues, but chances are you’ll get something different. Most likely, higher fees due to the high risk.
To help you get an idea, there are three main packages. The free one has rates between 2.69% and 3.49%, but that’s for general businesses. The high risk will put these fees way above High Risk Pay or other similar providers.
Some other plans can cost as much as $99.95 for regular businesses.
API integrations are quite varied and depend on what you need. For that kind of money, you would expect something extraordinary, but you’ll find the same integrations that come with High Risk Pay or other providers.
Other than that, The Payment HQ has partnerships with different companies for display systems, multiple card readers and devices. At least you have a few options when it comes to choosing the right devices.
How to Get Approval Faster by a High Risk Payment Processing Vendor
Generally speaking, an application for a high risk payment processing account shouldn’t take more than a few minutes. What takes longer is the actual research of different vendors. The initial application usually asks for a series of details about your company before someone can get in touch with you.
If you get approved, the provider you pick will ask you for further documentation. Based on where you live and the vendor’s requirements, you may have to provide the certificate of incorporation, bank statements, copies of valid IDs, a structure chart, maybe a shareholders’ certificate and potential licenses too.
Your processing history is just as important. Some high risk payment processing providers avoid new companies simply because they can’t provide accurate estimates regarding the number of transactions, volume or chargebacks.
Small details can sometimes make the difference for your application. For example, chances are you have a website as well. Here are a few small bits to pay attention to before submitting your application:
- The company’s legal name must be clearly displayed. Even if your store is called Panda Apparel and your business is called British Clothing for Newborns Ltd., you need to display the official company name as well.
- Make sure the policy for refunds and returns is crystal clear. Try to cover every possible aspect that may arise or you’ll leave room for interpretation. This means customers may take advantage of your policy, which adds even more risk to your business.
- Contact details need to be very specific as well. While one contact is more than enough, having more ways to be connected will generally be considered a good sign. Live chat is just as good, but feel free to mention the address and perhaps a phone number as well.
- If you deal with products, make sure you list all the shipping methods in a clear manner. Timings should also be considered. It might be a good idea to give slightly more time for shipping, only to play it safe and avoid confusion.
- Security standards are just as important when looking for a high risk payment processing vendor. There are more things you can do to ensure your website is secured, but most importantly, you’ll need a classic SSL certificate. In other words, your website should use HTTPS over HTTP.
Apart from boosting your website, there are other techniques you can consider to improve your success rate and optimize your application.
Update Accounts
Your accounts should be up to date. They’ll be requested by most vendors out there and they’ll have to prove your past and current financial situations. If they’re outdated, chances are you’ll be rejected or you’ll be asked to update them.Work on Your Credit
Your credit score is not considered when applying for such an account. You can usually be accepted with a bad credit score. You can be accepted with no score at all too. However, improving your credit score can and will help, especially when it comes to fees and rates. If you can do it, go for it.Terms and Conditions
Terms and conditions must be visible on the website. At the same time, they should be fully compliant as well. This means you need to write them within a legal framework. It will convince providers that you’re less likely to cause any trouble later on.Protective Contract
Many businesses rely on third party fulfillment, which is perfectly normal. Some businesses in particular, such as dropshipping companies, depend on it. Make sure you have a contract that protects you or this third party collaboration could increase the risk of refunds.Reduce Chargebacks
Showing you’re responsible or can minimize chargebacks will increase your chances to be accepted and at better rates too. While most vendors offer tools to reduce such issues, the truth is you can also bring in some third party fraud filters to ensure less problems.How Much Do High Risk Payment Processing Accounts Cost?
As a general rule of thumb, high risk payment processing companies tend to charge more than those dealing with low risk industries. It’s easy to understand why. More risks will cost more, as it can affect the provider’s reputation and operation.
Understanding the most common fees and rates will help you get an idea about what to expect.
Transaction Fees
Transaction fees are some of the most consistent costs associated with your account. They’re usually given as percentages, yet some providers offer a percentage and a flat amount next to it.Normally, these fees can be around 4%, but providers like High Risk Pay offer way less than that. Other than that, you can also see fees like 2% and 0.2$ per transaction.
Reserve Funds
Some high risk payment processing providers require reserve funds. These funds are used for potential financial drawbacks, such as issues with chargebacks. Even if your provider doesn’t have this requirement, it still pays off getting some separate funds yourself, only to avoid getting caught out.On average, if you find a provider with this requirement, expect about 15% of your transaction revenue going to this fund. It’s a big chunk of your profit, but it’s not an actual fee or expense.
Setup Fees
Ideally, you should find a high risk payment processing platform that doesn’t charge a setup fee. After all, the setup is part of a successful application and doesn’t really make a lot of sense. However, if other parts of the deal are advantageous, you can also consider it.Setup fees vary widely from one vendor to another and can be around $50.
Monthly Fees
Monthly fees represent another issue that’s likely to become history at some point. More and more providers try to ditch these fees, yet most of them still require them. They can range between $10 and $20 a month, yet you can find providers asking for over $100 a month.These maintenance fees could also come with discounts, especially if you pay them annually. Such discounts vary from one vendor to another.
Special Industry Fees
If you’re dealing with a high risk payment processing vendor, you naturally expect them to cost more because of the risk. But if you go to a general vendor that also supports high risk industries, you may be hit with a special category or industry fee too.Some of these fees only target industries like adult entertainment or gambling.
Termination Fees
Many vendors open accounts without lengthy contracts. Some of them go on month by month. Ideally, you should get one of these. If you get hooked on a long term contract, you may have to pay a fee for terminating the agreement too early.International Fees
The concept of payment processing is to be able to take long distance payments. But if you also deal internationally, make sure you ask the vendor if there are any international transaction fees. Not only do you risk losing money on the conversion, but you can also pay up to 10% in these fees.Challenges and Solutions Associated with High Risk Industries
Businesses in high risk industries face a few more h0075rdles than businesses in low risk industries. Most of these risks end up affecting their profits.
Higher Fees
Given the risks, such an account will have higher fees than a regular one. This is an issue if your profits are limited or they barely exist. However, such a payment processor is an actual necessity because otherwise, you won’t be able to take card or online payments.Long Hold Times
Since you’re part of an industry with high risks, such providers know that fraud and chargebacks are more common than normally. This means you’ll face longer hold times, which often take a few days. This could affect your cash flow and operations, so make sure you have enough disposable income.Approval Issues
As part of a high risk industry, your business will find it challenging to get a merchant account. Despite the fees and requirements, there are still many rejections out there. Make sure everything is right before applying. Vendors like High Risk Pay have a pretty high approval rate too.Strict Applications
Applications are also stricter than usually, meaning you may need to bring more paperwork than someone in a low risk industry. Basically, you might be asked for details about your business health, managers or directors, compliance with different regulations, licenses and so on.Now, apart from these challenges, what kind of solutions do you have? Here are a few useful ideas to ensure you’ll be able to take card and online payments quicker than normally.
- Opt for a specialized provider. Vendors dealing with both low and high risk industries will have plenty of businesses from the first. Those specialized in high risk industries will mostly count on businesses like yours to generate income.
- Choose extra security. Security isn’t necessarily about the idea of getting hacked, but also about the fraud prevention tools some vendors may offer. Unless you have such tools yourself, it might be a good idea to go with a vendor with a rich portfolio.
- Pick legal support. Compliance with different regulations can be risky if you have no idea what you’re doing. There’s always a risk when it comes to the law, so it might be wise to choose a provider that can offer this type of support.
- Go for chargeback management. If a provider offers this feature, take it. Robust resolution procedures will ensure you’re not caught out. Communication with your customers is also important in the process, so focus on the customer service.
- Transparency is a must. Many vendors offer customized packages. It makes perfect sense. But at the same time, some of them aren’t transparent at all when it comes to their prices. They provide prices based on the application, which could be a red flag.
- Stick to modern payment infrastructure. Modern infrastructure with advanced APIs streamlines the overall process, but it also allows merchants to integrate different tools for a smooth operation.
FAQs
Still unsure about high risk payment processing?Can I lower my high risk status?
Many merchants believe that the high risk status can never change, only because they’re automatically labeled once they become part of an industry. That’s true, but then, there are also solutions to ensure your status can change a little.For example, lowering the chargeback percentage will give you a better image in front of high risk payment processing vendors. At the same time, upping your credit score will certainly help, even if providers don’t necessarily look at it.
Opt for fraud protection as well if a provider offers this feature.
Are there any alternatives to high risk payment processing platforms?
The only alternative implies quitting the idea. Basically, you can switch to cash only, but that only works if you provide a local physical product or service. If you run an online business, you’ll definitely need a merchant account.Another option would be to take crypto only, but you’ll need something similar too.
Believe it or not, even operating in an approved history could lead to similar restrictions. For example, being listed in the MATCH database can prevent many providers from accepting you.
The best thing to do in this situation is to start building a processing history, work on other aspects like the credit score and try again later.
Launching a new business with a different name may also help ditching the MATCH lists.
Is there a list of industries considered high risk?
No bank or financial institution will provide such lists, but there are certain industries considered high risk, such as: antiques, bad credit, cannabis, subscriptions, debt collection, streaming, events, gaming, furniture, health, beauty, gyms, hotels, pet products, property management and so on.What’s the best high risk payment processing platform?
Different platforms cater to different businesses, so it’s important to assess your business needs before anything else. Only then you can start looking at fees, rates, features and implementations in order to pick the right vendor.Why are chargebacks such a popular problem?
Industries labeled as high risk deal with numerous transactions and many of them can be open to disputes for a variety of reasons. Luckily, there are tools out there that can help you reduce chargebacks and handle risks in a more effective manner.As a final conclusion, high risk payment processing can be a complex and confusing industry. Unless you can stick to cash only, such an account becomes an actual necessity, so you’ll need to find a way to get in.
There are more factors that can determine your risk, fees, rates and approval rate. While it may seem challenging, the good news is you can normally make changes to increase your chances.
The concept behind the industry is to provide everyone the possibility to take online and card payments, whether over the Internet or in-person. Despite the challenges associated with your high risk profile, you do have options, but you’ll have to research everything upfront.
