7+ Best High-Risk Merchant Account Payment Processors in 2024

Facing challenges in securing a merchant account due to the high-risk nature of your business? No need to worry! 

There are solutions available to help you overcome this hurdle and access the payment processing services you need.

Payment processing companies tend to be cautious when it comes to high-risk businesses. However, that doesn’t mean you’re out of luck. 

By partnering with a high-risk merchant account processor, you can still obtain the payment solutions required for your business.

In this article, we’ll present eight of the top high-risk merchant account processors for 2024. 

By the end, you’ll have a clear understanding of the available options and be equipped to choose the right company for your business needs.

What are the Best High-Risk Merchant Account Processors:

1.PaymentCloud – Best overall choice

PaymentCloud is an excellent option for high-risk businesses in industries such as firearms, adult products, e-commerce, and dating. 

Established in 2015, PaymentCloud has rapidly grown by offering secure payment processing solutions for all types of businesses.

What sets PaymentCloud apart is its inclusive approach. 

Unlike traditional banks that often reject individuals with bad credit or a history of failed businesses, PaymentCloud welcomes them and provides specialized high-risk merchant accounts.

This means that even if you’ve faced financial challenges in the past, PaymentCloud can help you securely accept payments from customers.

PaymentCloud utilizes advanced technologies, including payment gateways and fraud prevention tools, to ensure secure transactions. 

They also offer personal account management, with trained representatives providing hands-on assistance throughout the setup process.

In addition to payment processing, PaymentCloud understands that high-risk businesses may need financial support. 

They offer financing options such as equipment financing, working capital loans, and unsecured business loans, helping you get the funding necessary to start or grow your venture.

Another notable feature is Paysley, a service provided by PaymentCloud that turns your smartphone into a convenient point-of-sale terminal. 

With Paysley, you can accept contactless payments, send invoices via text message, and securely verify fund transfers.

Key Features of PaymentCloud:

• Welcomes individuals with bad credit or a history of failed businesses
• Utilizes advanced technologies for secure payment processing
• Provides personal account management through trained representatives
• Offers financing options for business growth
• Provides the convenient Paysley service for mobile payment acceptance

Fees:

For specific fee details, it’s best to contact PaymentCloud’s sales team directly. They can provide you with a quote tailored to your business needs.

2. Durango Merchant Services – Best for highest-risk businesses

Durango Merchant Services has been a player in the payment processing industry for over two decades.

They specialize in providing accessible high-risk merchant accounts for businesses considered high-risk, such as tobacco and e-cigarette sellers, e-commerce, high-ticket item providers, and online liquor stores.

The company boasts a team of certified payment consultants who are experts in both in-person and e-commerce credit card processing. 

They can assist you in finding the right solutions for your business. 

Durango Merchant Services has also partnered with a check verification service, enabling quick and hassle-free e-check processing with minimal reserves and guaranteed approval.

Their user-friendly payment gateway supports various payment methods, including online, in-store, self-service, and mobile payments. 

It accepts payments from major credit card companies like Visa, Mastercard, and Discover.

Durango Merchant Services’ payment gateway seamlessly integrates with over 150 popular third-party shopping carts, such as WooCommerce, Shopify, Magento, Zoho, and BigCommerce. 

Their advanced EMV 3D Secure 2.0 technology provides enhanced security, preventing fraudulent transactions and minimizing losses from chargebacks. 

Additionally, Durango Merchant Services supports cryptocurrency payments.

Key Features of Durango Merchant Services:

• Provides high-risk merchant accounts for businesses in high-risk industries
• Experienced team of certified payment consultants to assist with credit card processing needs
• Offers a high-risk payment gateway compatible with over 150 shopping carts
• Utilizes EMV 3D Secure 2.0 technology for fraud prevention and chargeback reduction
• Partnership with a leading check verification service enables e-check processing
• Supports international merchants through Durango pay payment gateway

Fees:

Durango Merchant Services understands that each high-risk merchant has unique requirements, so their fees vary based on the specific business and transaction model. 

To receive a custom quote, they recommend filling out the application form on their website. 

An account manager will then reach out to you within 24 hours to discuss your needs and provide fee details.

3. Host Merchant Services – best for businesses that generate a monthly sales volume of $10,000 or higher.

If your business falls into a high-risk category, such as firearms or non-profit organizations, Host Merchant Services can provide you with a high-risk account. 

With over a decade of experience, this company specializes in assisting high-risk merchants in securing merchant accounts and processing both online and in-person credit card payments.

Host Merchant Services offers tailored merchant service payment systems designed to accommodate various payment methods, including point-of-sale, EMV terminals, e-commerce, and mobile solutions. 

They strive to significantly reduce their customers’ merchant fees and are transparent about their pricing structure.

One standout feature of Host Merchant Services is their quick funding times. 

They provide next-day funding, ensuring that you won’t have to wait long to access your revenue, provided you settle your credit card batch by the designated deadline. 

This prompt funding service is particularly valuable for businesses operating in cash-intensive industries, helping to maintain a healthy cash flow.

Moreover, Host Merchant Services grants e-commerce businesses access to a wide selection of over 100 payment gateways. 

They assist high-risk merchants in seamlessly integrating their businesses with various online shopping carts. Additionally, their TXP payment processing system can transform any Mac or PC into a comprehensive point-of-sale system, complete with features like tokenization and recurrent billing.

Key Features of Host Merchant Services:

• Quick next-day funding, ensuring timely access to revenue
• Access to a diverse range of over 100 payment gateways
• Availability of cash advances for customers
• TXP payment processing system turns Mac or PC into a full-featured point-of-sale solution
• Transparent fee structure

Fees:

Host Merchant Services employs a per-transaction fee model, with the specific fee amount varying depending on the type of transaction.

For example, face-to-face transactions conducted at retail storefronts incur a fee of 0.25% and $0.10 per transaction.

Additionally, there is a payment gateway fee of $5 per month, while the overall service costs $14.99 monthly. 

For a comprehensive list of fees, please visit the pricing page on their website.

4. Soar Payments – Best for USA-based businesses

Soar Payments specializes in providing merchant accounts for businesses that have been declined by banks and credit card processors due to their high-risk nature.

They serve a wide range of industries, including fantasy sports, antiques and collectables, and digital streaming.

No matter the level of risk associated with your business, Soar Payments has tailored solutions to meet your needs.

 High-risk merchants with traditional storefronts can benefit from credit card and POS machines that enable seamless retail payments via credit and debit cards. 

Additionally, Soar Payments supports mobile and virtual terminals to adapt to your specific requirements.

If your business operates as a high-risk online merchant, Soar Payments’ merchant accounts integrate smoothly with various shopping cart and payment gateway software programs. 

Their accounts come equipped with advanced fraud protection technology, mitigating the risks of fraud and chargebacks.

Soar Payments also provides cost-effective e-check and ACH payment processing services. 

By applying for an account, you can receive an instant quote, and their pricing is usually at the industry’s minimum.

Moreover, you can expect friendly customer service representatives based in the United States to assist you every step of the way.

Key Features of Soar Payments:

• Instant quotes are provided for all merchant account applications
• A retail merchant account enables seamless credit and debit card payments
• An E-commerce merchant account integrates with payment gateways and shopping carts for credit card transactions
• Friendly and knowledgeable customer service representatives based in the United States
• Built-in fraud protection for added security

Fees:

For detailed pricing information, Soar Payments encourages you to reach out to their sales team or fill out the application form to receive an instant quote tailored to your business’s specific needs.

5. Goat Payments – Best for small to medium-sized businesses

Goat Payments is a reputable payment processing company that specializes in serving high-risk businesses. 

With over 12 years of industry experience, they have processed applications within 24 hours and boast an impressive approval ratio of nearly 100%.

Having served more than 15,000 high-risk entities, including non-profits and multi-level marketing companies, Goat Payments has established itself as a trusted partner in the high-risk merchant services arena.

One of the standout features of Goat Payments is their commitment to helping businesses save on payment processing fees. 

They claim to save businesses an average of 17.3% on these fees. 

Through their strong relationships with over 25 banks, they offer a unique “concierge white glove service” that extends throughout the entire partnership with each high-risk merchant they serve.

Unlike many other high-risk payment processors that impose charges for credit card processing or early termination fees, Goat Payments takes a different approach. 

They operate a Paylo Discount Program, providing high-risk merchants with zero-cost processing. 

Additionally, every approved high-risk merchant receives a complimentary POS machine, and local businesses can benefit from free in-person installations.

When you choose Goat Payments as your payment processor, you gain the ability to accept credit cards from major processors such as Mastercard, Visa, Discover, and American Express. Their high-risk accounts also accommodate pin-based debit cards.

Moreover, Goat Payments distinguishes itself with its dedicated customer support, available 24/7 to address any concerns or inquiries.

Key Features of Goat Payments:

• Nearly 100% application approval ratio, offering high chances of acceptance
• Strong relationships with over 25 banks, facilitating access to merchant accounts for their high-risk client base
• No early termination fees are charged, ensuring flexibility for high-risk merchants
• Paylo Discount Program provides zero processing fees for high-risk credit card processing
• Dedicated customer support is available around the clock, providing assistance when needed

Fees:

As is common among high, medium, and low-risk merchant account providers, Goat Payments does not disclose their fees on their website. 

To obtain more information regarding their pricing, you can fill out the form available on their website and request a personalized quote.

6. SMB Global – Best for international merchants

SMB Global prides itself on being a comprehensive payment processing solution, offering a range of services to meet your business needs. 

What sets this company apart is its ability to provide both domestic and offshore merchant accounts, offering flexibility and options for businesses of all types.

Leveraging its strong relationships with over 15 banks, SMB Global strives to deliver high, medium, or low-risk merchant accounts with competitive rates.

Recognizing the impact of excessive chargebacks on a business’s risk profile, SMB Global takes proactive measures to address this issue. 

They provide chargeback prevention software designed to help you identify and mitigate chargebacks before they occur. 

This powerful platform includes real-time analytics, robust reporting capabilities, and chargeback re-presentment, giving you the tools to effectively manage and prevent fraud-related chargebacks.

In addition to payment processing, SMB Global offers ACH payment processing services at a flat rate. 

This not only helps you reduce costs but also provides greater payment diversity for your customers. 

By offering alternative payment options, your customers can save on credit card charges while enjoying the convenience of ACH payments.

SMB Global understands that access to capital is vital for small businesses. 

Through their partnership with Lendio, they can assist you in securing a small business loan quickly and efficiently. 

With a streamlined application process that takes only 15 minutes, you can gain access to the capital you need in less than a day. 

Lendio evaluates various factors such as your monthly revenue, business tenure, and industry, boasting a 60% approval rate for loan applications.

Key Features of SMB Global:

Offers both domestic and offshore merchant accounts, providing flexibility for businesses

Partners with Lendio to facilitate small business loans, with a quick and easy application process

ACH payment processing with flat rates, reducing costs and expanding payment options

Provides chargeback prevention software to identify and prevent fraudulent chargebacks

Competitive rates for high-risk merchant accounts

Fees:

SMB Global does not disclose specific fee information on its website. To obtain detailed information about their fees, it is recommended to contact their sales team directly.

7. HighRiskPay.com – Best for adult-themed businesses

With over 25 years of experience, HighRiskPay.com is a trusted provider specializing in high-risk merchant accounts and customized payment processing solutions.

They cater to customers with diverse credit histories, offering expertise and tailored services to meet their specific needs.

With a quick approval turnaround time of 24 to 48 hours, the company offers competitive rates on their merchant accounts.

Catering to industries such as adult entertainment, CBD, and more, HighRiskPay.com specializes in offering robust payment gateway solutions.

Online high-risk merchants can take advantage of their ACH payment processing services, which not only streamline transactions but also help reduce fees.

HighRiskPay.com seamlessly integrates with popular e-commerce platforms and content management systems, including Wix, Shopify, WordPress, 3DCart, and Magento. 

Their cutting-edge technology focuses on fraud prevention and minimizing chargebacks, ensuring a secure payment environment for high-risk businesses.

In addition, HighRiskPay.com extends its support to small businesses whose loan applications have been rejected due to low credit scores.

Through their next-day funding program, eligible businesses can access the capital they need in a timely manner.

Key Features of HighRiskPay.com:

• Welcomes applicants irrespective of credit scores or high-risk merchant processing history
• Rapid approval process within 24-48 hours
• Integrations with popular platforms and third-party technologies
• Next-day funding option for small businesses in need of loans
• Comprehensive payment

Fees:

HighRiskPay.com offers its high-risk account service at a monthly fee of $9.95. Transactions processed through their system incur a fee of $0.25 plus 2.95% of the total transaction value.

8. Payment Depot – Best for a cost-saving membership

Payment Depot offers comprehensive payment processing solutions for businesses across all risk levels.

 As part of the Stax company family, it operates on a monthly fee and per-transaction basis, allowing members to enjoy significant savings on their credit card processing expenses.

With seamless integrations with popular shopping carts, payment gateway software programs, point-of-sale machines, and card terminals, Payment Depot expands the payment options available to your customers, enhancing their convenience and satisfaction.

In addition to its payment processing services, Payment Depot understands the importance of capital infusion for business growth. 

That’s why it provides next-day funding, enabling you to access the funds your business needs swiftly. 

Moreover, its advanced technologies act as a safeguard against chargebacks and fraudulent transactions, protecting your business and minimizing potential losses. 

The best part? Payment Depot does not charge any registration or cancellation fees, ensuring a transparent and hassle-free experience.

Key Features of Payment Depot:

• Next-day funding to support businesses in need of capital
• Integrations with shopping cart services, POS systems, and card terminals
• No registration or cancellation fees
• Advanced chargeback and fraud-monitoring technology
• Round-the-clock customer support from dedicated representatives

Fees:

Payment Depot offers three subscription plans tailored to different transaction volumes:

Starter: Priced at $59 per month with a per-transaction fee of $0.15, designed for businesses processing $125,000 worth of transactions annually.

Starter Plus: Priced at $79 per month with a per-transaction fee of $0.10, catering to businesses processing $125,000 worth of transactions annually.

Growth: Priced at $99 per month with a per-transaction fee of $0.07, ideal for businesses processing $500,000 worth of transactions annually.

For businesses processing over $500,000 in credit card payments annually, Payment Depot offers custom plans tailored to their specific needs.

Understanding High-Risk Merchant Accounts

High-risk merchant accounts play a crucial role in enabling businesses deemed high-risk to accept non-cash payments from their customers. 

These accounts are designed to mitigate the risks associated with certain industries or business types. 

However, choosing the right high-risk merchant account provider requires careful consideration of several key factors.

Factors to Consider When Researching High-Risk Merchant Accounts:

Credible Reputation and Extensive Experience: Look for providers with a proven track record of working with high-risk businesses and positive reviews from other merchants.

Transparent Account Fees: Compare the fees of different providers, including monthly or annual fees, chargeback fees, and other associated costs. 

Understanding the fee structure upfront is crucial in determining the overall cost of the high-risk merchant account.

Robust Risk Management Systems: Ensure the provider offers advanced risk management systems to protect your business from fraud and minimize chargebacks.

Diverse Payment Options: Choose a provider that offers a wide range of payment options to provide flexibility for your customers.

Seamless Integration: If you use specific platforms or software for your business, select a provider that seamlessly integrates with those systems to streamline payment processing.

By considering these factors, you can make an informed decision when choosing a high-risk merchant account provider that meets the specific needs of your business.

Frequently Asked Questions about High-Risk Merchant Accounts

How can I obtain a high-risk merchant account?

To obtain a high-risk merchant account, start by researching reputable high-risk merchant account providers. 

Reach out to potential providers and provide details about your business, including the industry type and processing needs.

Complete the application process and submit the required documentation. The provider will assess the risk associated with your business and perform underwriting.

 After evaluation, you will receive an approval decision. 

Set up the integration with your business infrastructure, ensuring compliance with security measures. 

Finally, test the system and begin accepting payments through your high-risk merchant account.

What are the costs involved in high-risk merchant accounts?

High-risk merchant account fees vary depending on the provider and the specific needs of your business. 

These fees typically include transaction fees, monthly account fees, chargeback fees, and potentially additional fees for services such as fraud prevention or PCI compliance.

It’s important to carefully review and understand the fee structure presented by the high-risk merchant account provider before entering into an agreement. 

It’s also recommended to compare fees among different providers to ensure you’re getting competitive rates that align with your business requirements.

Which businesses are considered high-risk and require payment processing?

High-risk businesses operate in industries with a higher likelihood of chargebacks, fraud, or regulatory issues. 

Examples include adult entertainment, online gambling, CBD products, firearms, and e-commerce services.

Why are the fees typically higher for high-risk merchant accounts?

The higher fees associated with high-risk merchant accounts are primarily due to the increased risk and liability assumed by payment processors. 

These businesses have a higher chance of chargebacks and fraud, requiring payment processors to implement additional security measures and absorb potential financial losses.

How much does a high-risk merchant account typically cost?

The cost of a high-risk merchant account varies depending on factors such as the type of business, transaction volume, processing history, and the specific payment processor. 

High-risk merchant accounts often involve higher transaction fees, monthly fees, and possible additional charges for services like fraud prevention.

It’s important to review and compare fee structures from different providers to find the most suitable and competitive option for your business.

5 Considerations When Researching High-Risk Merchants and Payment Processors

Credible Reputation and Extensive Experience: Consider the track record and reputation of high-risk merchants and payment processors. 

Look for providers with a proven history of working with high-risk businesses and positive reviews from other merchants.

Transparent Account Fees: Compare the account fees of different processors, including monthly or annual fees, chargeback fees, and other associated costs. 

Understanding the fee structure upfront is crucial in determining the overall cost of the high-risk merchant account.

Robust Risk Management Systems: Look for processors that offer advanced risk management systems to protect your business from fraud and minimize chargebacks. 

These systems provide added security and peace of mind.

Diverse Payment Options: Consider processors that offer a wide range of payment options, including credit and debit cards, ACH payments, and e-checks. 

Having multiple payment options ensures flexibility for your customers and enhances the overall payment experience.

Seamless Integration: If you use specific platforms or software for your business, choose processors that seamlessly integrate with those systems. 

This streamlines the payment process and allows for smoother transactions without any disruptions.

Closing Remarks – Best High-Risk Merchant Account

In conclusion, now that you have a better understanding of high-risk merchant accounts, consider providers that offer excellent customer support, robust fraud and chargeback prevention tools, reasonable fees, and timely application approvals. 

Additionally, prioritize providers that offer a wide range of integrations with third-party software platforms, providing flexibility for your payment processing operations. 

By considering these factors, you can confidently select the best high-risk merchant account provider that meets your business needs.

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