Business

Best High-Risk Payment Processing Companies

Every land-based or online business should accept credit cards and other forms of online payments. It is advisable to partner with a trustworthy payment service provider, but it is not easy to find the right one. Most Payment processing companies offer their services to normal businesses and stores, but it is difficult for high-risk merchants to find a reliable service provider.

Most businesses that are considered high-risk are either not approved by normal payment processors, or they need to open a high-risk merchant account with dedicated support and features to prevent fraud. It is vital to have knowledge regarding high-risk businesses and the best payment processing companies that offer merchant accounts for such firms.

What is a high-risk merchant?

A high-risk merchant or business is one that payment processors, banks, and other institutes consider risky to work with. Such businesses have a high chance of fraudulent transactions and are vulnerable to chargebacks from customers. A particular business may be high-risk for one payment processor but not for another. Each processor determines various factors before deeming a business high risk.

Businesses with poor personal credit, high chargeback rates, high average sales, multi-level marketing, etc., are generally considered high risk. Some examples include legal services, vape and CBD companies, gambling and betting companies, subscription services, travel and tourism, etc. Even startups and offshore vendors are considered high-risk most of the time.

Need of a high-risk merchant account

Certain factors are considered before giving a loan or insurance coverage to a business. Similarly, businesses find it hard to open a traditional merchant account if they are deemed high risk and don’t fall under the policies of a traditional bank. In this case, you need to find a payment processor that works with high-risk merchants.

High-risk merchant accounts usually involve very high account fees and processing rates. They offer long-term contracts and charge money for early termination. There are some payment processors that have fair pricing and specialize in such accounts. They have quality services with a lot of benefits to risky businesses.

  • Provide high protection against frauds and scammers
  • Low restrictions on international payments and transactions
  • You can use recurring billing
  • Reduce chargebacks through load balancing and process high-volume sales

Businesses may need to spend more on opening high-risk merchant accounts, but it is certainly worth it. Such payment processors reduce fraudulent transactions and reduce risky, troublesome situations for your business.

The best high-risk payment processing companies

High-risk businesses should take a look at our following list featuring the best payment processors for risky merchants. Most of them are well-known and trusted by many merchants. Even though opening such accounts is costly, most of these companies offer fair prices and secure services to their clients.

Businesses need to contact several companies and compare their prices and services before making a final decision. Go with a payment service provider that suits your requirements and fits your budget. Here are the best options available out there.

PaymentCloud

Most merchants consider PaymentCloud to be the best option out there. The company partners with multiple acquiring banks and processors to get a high-risk merchant account approved at reasonable prices. There are no account setup or application charges for new clients. Merchants also get a free virtual terminal upon opening an account.

The company has a 98& approval rating from partner banks, and you can get a quote for free. A partnership with Chargeback Gurus provides instant alerts, cause alerts, and prevention techniques. Most tobacco, CBD, vape companies, diet coaches, tech support companies, etc., work with PaymentCloud.

Host Merchant Services

Host Merchant Services accommodates multiple high-risk businesses and is a great option for merchants who can get approved. It used to be a web hosting company and is ideal for E-Commerce businesses. The company uses TSYS Merchant for its backend. Merchants can get a free EMV terminal if they process over $20,000 monthly.

Businesses have the option to choose Host Merchant’s Transaction Express, Authorize.net, or any other payment getaway. If your business is approved by the company, you don’t need to pay any application or early termination fees. Clients have access to 24*7 customer support, but low-volume merchants may find the company expensive.

Durango

Among the oldest and most recognizable payment processors in the industry, Durango is loved by merchants for fair pricing, exceptional customer support, and transparency. It does not disclose prices and uses a quote system based on the business. The company works with US-based processors, but you can set up an offshore account too.

Its payment getaway is secure and offers all payment features. Each merchant account holder gets a dedicated account manager to look at any issues. Retail merchants can get NFC and EMV based payment terminals. The power to work with offshore providers is what sets Durango apart from others.

PayPound

A fast-growing payment processor, PayPound offers various high-risk companies with secure payment solutions. The company’s payment getaway has great security and protection, fraud-prevention technology, reporting tools, and free lifetime customer support. PayPound serves multiple industries like cryptocurrency, CBD and vapes, Forex, adult industry, etc.

Many customers prefer paying with their local currency, and PayPound offers alternate payment methods to make it possible. The company is great for risk evaluation and management that helps provide comfortable payment solutions to clients.

PayKings

Many CBD, adult products, pawnshops, travel, vape, and similar high-risk businesses trust PayKings with their payment services. PCI-DSS certification ensures the security of data and transactions made through PayKings. They offer you chargeback management and recurring billing features along with basic services.

The processor offers ACH payments and Level 1, 2 and 3 credit card processing. This is based on the details and info needed to process a transaction. PayKings charge a 2.49% transaction fee, but it can vary based on a business’ past transaction processing history.

Conclusion

The process of hiring the right payment processing company is not at all easy for high-risk merchants. Your business can fail if you do not ensure a smooth payment flow between your customers and yourself. High-risk payment processors are generally expensive and have rigid rules.

However, the payment processors we talked about in the above blog offer high-quality, secure payment solutions at fair prices. If you run one of the businesses that are classified high-risk, it is recommended to partner with one of these payment processors. PaymentCloud, PayPound, and other companies are trusted by a lot of high-risk merchants for secure payments.

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