High-risk businesses – like CBD retailers, online gaming, and adult entertainment – face unique challenges with payment processing, including higher fees (up to 4.3%), increased chargeback rates, and stricter regulations. Many traditional processors avoid these industries, leaving merchants to find specialized solutions.
Here are the 5 best payment processors tailored for high-risk industries:
- HighRiskPay: Low fees (starting at 1.79%), fast approvals, and strong chargeback protection.
- PaymentCloud: Advanced fraud tools, 98% approval rate, and flexible pricing (2.7–4.3%).
- Inovio: Military-grade security, seamless integrations, and global payment support.
- Soar Payments: Industry-specific services, multi-currency processing, and 24/7 support.
- Secured Payments: AI-driven fraud detection, subscription tools, and multi-layer security.
Quick Comparison
| Feature | HighRiskPay | PaymentCloud | Inovio | Soar Payments | Secured Payments |
|---|---|---|---|---|---|
| Monthly Fee | $9.95 | $10–$45 | Quote-based | Quote-based | Custom pricing |
| Transaction Fees | 1.79–2.95% | 2.7–4.3% | Quote-based | Quote-based | Custom pricing |
| Chargeback Fee | $25 | $25 | Varies | Varies | Included in plan |
| Approval Rate | 95% | 98% | Not published | Not published | Not published |
| Key Industries | CBD, Adult | Gaming, CBD | Multi-sector | CBD, Firearms | Adult, Subscription |
For high-risk businesses, choosing the right processor can reduce fraud, lower fees, and improve compliance. Dive into the article to find the perfect fit for your needs.
The Best High-Risk Merchant Account Providers
1. HighRiskPay
HighRiskPay specializes in supporting businesses in high-risk industries. With rates starting at 1.79% and no setup or cancellation fees, they offer a practical solution for businesses that often face challenges in securing payment processing.
Their system combines fraud prevention tools with a chargeback defense mechanism, boasting a win rate that’s twice the industry average [3].
Here’s how HighRiskPay tackles common challenges for high-risk merchants:
| Feature | Advantage | Details |
|---|---|---|
| Approval Process | Quick and Easy | Approvals within 24-48 hours and a 99% acceptance rate [2] |
| Payment Options | Flexible Solutions | Supports credit cards and ACH/eCheck processing with next-day funding [2] |
| Fraud Prevention | Stronger Security | Real-time monitoring paired with multi-factor authentication [4] |
| Chargeback Protection | Better Defense | Automated alerts and a defense system with top-tier win rates [3] |
| Compliance | Hassle-Free | Level One PCI compliance included at no extra cost [5] |
HighRiskPay’s fraud monitoring system is designed to cut down on false rejections, identifying 33% of transactions that might otherwise be incorrectly declined [3]. This is crucial for high-risk merchants who need to minimize disruptions.
"High Risk Pay’s expertise and long-term relationships with banks and other financial institutions ensure that your business is always tapped into the most reliable services in the industry." [2]
The platform serves industries like adult entertainment, CBD retail, online gaming, and subscription services. Its pricing is straightforward, with a basic transaction fee of $0.25 and a monthly fee of $0.25 [5], making it accessible for businesses of all sizes.
One standout feature is their automated chargeback management system, which is especially beneficial since 86% of cardholders file disputes without contacting merchants first [3]. Additionally, businesses with recurring billing can benefit from tools that help reduce decline rates for repeat orders.
With a focus on secure, efficient, and compliant payment processing, HighRiskPay provides a solid option for merchants in high-risk sectors.
2. PaymentCloud
PaymentCloud specializes in handling high-risk payment processing, offering tools to protect against fraud and chargebacks. With a 98% merchant account approval rate, it’s a reliable option for businesses in challenging industries [9].
Pricing Overview
| Service Type | Cost Range | Details |
|---|---|---|
| Monthly Fees | $10‑$45 | Covers account maintenance |
| Transaction Fees (Mid‑Risk) | 2.3%‑3.4% | Applies to moderate-risk merchants |
| Transaction Fees (High‑Risk) | 2.7%‑4.3% | For businesses in high-risk sectors |
| Payment Gateway | $15 | Monthly fee |
| Chargeback Fee | $25 | Charged per dispute |
In addition to competitive pricing, PaymentCloud integrates advanced security measures to ensure safe transactions.
"At PaymentCloud, we believe you shouldn’t have to choose between security and functionality when processing payments." [6]
Fraud Prevention and Chargeback Management
PaymentCloud’s fraud prevention tools include AVS, CVV checks, IP tracking, tokenization, and 3D Secure 2.0, which together have reduced chargeback rates by over 10% [7]. To further support merchants, the platform collaborates with Chargeback Gurus, improving dispute win rates up to 70% with integrated CRM tools [7]. This is a critical feature, considering U.S. merchants lose about 1.32% of revenue to unmanaged chargebacks [7].
Partnerships and Features
By partnering with over 20 banks, PaymentCloud ensures businesses secure the best placements [8]. Its performance is highly rated by TechnologyAdvice:
- Overall Score: 4.52/5
- Features: 4.75/5
- Support & Reliability: 4.69/5
- User Experience: 4.38/5 [1]
For high-risk merchants, PaymentCloud offers PCI-compliant virtual terminals and a proactive alert system that prevents up to 25% of chargebacks [7]. The platform also provides free credit card processing through surcharging, allowing businesses to pass processing fees to customers while staying within industry rules [1]. With its white-glove account management service, PaymentCloud combines cost-saving solutions with hands-on support.
3. Inovio
Inovio is a PCI DSS Level-1 compliant payment processor[13] with nearly 30 years of experience in handling secure payments for high-risk industries. The platform blends top-tier security measures with adaptable integration options, catering to the unique needs of challenging business sectors.
Security and Fraud Prevention
Inovio employs military-grade encryption and tokenization to safeguard sensitive payment data[11]. Its security suite includes:
| Security Feature | Function | Purpose |
|---|---|---|
| 3D Secure 2.0 | Adds an extra verification step | Reduces fraudulent transactions |
| Real-time Risk Monitoring | Continuously analyzes transactions | Detects fraud instantly |
| Blacklist Management | Tracks suspicious activity | Blocks repeat offenders |
| Tokenization System | Encrypts data | Secures payment details effectively |
In addition to securing payments, Inovio provides advanced tools to simplify dispute resolution.
Chargeback Management Tools
Inovio’s chargeback tool links chargebacks directly to the original transactions, making dispute resolution faster and more efficient[11]. The platform also offers a real-time postback service to share key payment updates with merchants’ systems[10]. These updates include new purchases, rebills, subscription changes, cancellations, reversals, and chargebacks.
Integration Capabilities
Inovio’s payment gateway is designed for seamless integration with various e-commerce platforms. It works with popular platforms such as Infusionsoft, Nats, and CartConnect to streamline marketing and online sales.
"At Inovio, we have the technologies and expertise (nearly three decades of it) to deliver encrypted payments with advanced security that protects both you and your customers from fraudsters."
– Inovio [13]
Compliance and Risk Management
Inovio also emphasizes risk management to help businesses meet regulatory requirements[10]. Its Portal Service includes tools to maintain compliance, and it advises businesses to adopt practices like regular software updates, strong password policies, limited access to sensitive data, scheduled backups, and a clear incident response plan.
With no history of class-action lawsuits or FTC complaints[12], Inovio demonstrates a strong commitment to ethical practices in high-risk payment processing.
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4. Soar Payments
Soar Payments specializes in working with high-risk industries often turned away by traditional payment processors. They provide solutions designed to handle high chargeback rates and strict regulations, backed by advanced fraud protection, industry-specific services, transparent pricing, and dependable support.
Fraud Protection Suite
Soar Payments uses Authorize.Net‘s fraud prevention tools to help safeguard transactions [17]. Their automated fraud protection features include:
| Security Feature | Function | Benefit |
|---|---|---|
| AVS (Address Verification) | Confirms billing address | Helps reduce fraudulent card use |
| CCV Verification | Verifies card security code | Prevents unauthorized transactions |
| Daily Velocity Filter | Tracks transaction patterns | Detects unusual activity |
| Advanced Fraud Detection Suite | Multi-layer security checks | Strengthens fraud prevention |
Industry-Specific Services
Soar Payments supports industries like CBD, firearms, subscription services, and debt collection. They design accounts to handle high chargeback ratios (over 1%), large transaction volumes, and regulatory challenges, while also enabling multi-currency processing [15][14].
Pricing Structure
Their pricing is simple and based on transaction volume, industry type, and associated risk, following their ‘Industry Minimum Pricing’ model [16][14].
Integration and Support
With Authorize.Net’s infrastructure – processing over 1 billion transactions annually worth more than $140 billion [17] – Soar Payments ensures reliable service. They offer 24/7 support, smooth e-commerce integration, virtual terminals, and mobile-friendly solutions [14].
"Great place to go for high risk merchant services! I love the consistent communication and how each day during the approval process I was updated on the status of my application." [16]
5. Secured Payments
Secured Payments, a service by Elevated Financial Services, offers payment processing solutions specifically designed for businesses in high-risk industries. Their platform combines strong security measures with tools to address the unique needs of these merchants.
Advanced Security Infrastructure
The platform employs multiple layers of security to minimize fraud risks in high-risk transactions [18]. Here’s a breakdown of its key features:
| Security Feature | Implementation | Benefit |
|---|---|---|
| Multi-Factor Authentication | 3D Secure protocol | Strengthens transaction security |
| Real-Time Monitoring | AI-driven fraud detection | Quickly identifies threats |
| Compliance Tools | PCI DSS and GDPR frameworks | Ensures regulatory compliance |
By focusing on security, Secured Payments ensures that merchants can process transactions confidently while mitigating risks.
Payment Solutions for High-Risk Merchants
Secured Payments simplifies global transactions with direct-to-bank processing and multi-currency support, making it ideal for international merchants. The platform also integrates with major e-commerce systems, offering features like virtual terminals for remote payments and subscription management tools.
Chargeback Management Tools
The platform includes advanced chargeback management features. It automatically flags suspicious transactions and provides merchants with data-driven insights to help prevent disputes and reduce chargeback rates.
Industry-Specific Services
Secured Payments tailors its offerings to meet the demands of high-risk industries. Services include online gateway integration, recurring billing options, and support for multi-currency payments, ensuring businesses can meet regulatory and operational requirements.
Support and Integration Resources
Merchants benefit from 24/7 support focused on compliance and fraud prevention. Additionally, the platform offers full API documentation and resources for developers, ensuring smooth integration with existing systems.
Direct Comparison
Here’s a side-by-side overview of key features across providers:
| Feature | HighRiskPay | PaymentCloud | Inovio | Soar Payments | Secured Payments |
|---|---|---|---|---|---|
| Monthly Fee | $9.95 | $10–$45 | Quote-based | Quote-based | Custom pricing |
| Transaction Fees | 1.79–2.95% + $0.25–$0.50 | 2.3–4.3% | Quote-based | Quote-based | Custom pricing |
| Setup Fee | None | Varies | Quote-based | Quote-based | Custom pricing |
| Chargeback Fee | $25 | $25 | Varies | Varies | Included in plan |
| Key Industries | Bad credit, CBD | Gaming, CBD, Adult | – | – | – |
| Approval Rate | 95% for bad credit | High | Not published | Not published | Not published |
This table highlights the essential details to consider when choosing a payment processor for high-risk businesses.
Pricing Structure Analysis
The pricing models differ significantly. HighRiskPay offers a straightforward flat-fee model, while PaymentCloud uses tiered pricing that varies based on specific factors. This flexibility can help businesses with unique needs but might complicate cost predictability.
Security and Compliance Features
All providers prioritize fraud detection and compliance tools to meet regulatory demands. These features can help businesses reduce risks and maintain smoother operations. However, merchants should carefully evaluate which provider’s compliance measures align best with their industry requirements.
Real-World Performance
Take PaymentCloud as an example. Their partnership with GreenLeaf Organics resulted in a 60% reduction in processing disruptions and a 35% increase in sales [1]. This demonstrates how tailored solutions can directly impact business outcomes.
Industry-Specific Advantages
- HighRiskPay is ideal for businesses needing high approval rates for bad credit.
- PaymentCloud specializes in serving gaming, CBD, and adult industries.
- Soar Payments stands out by offering instant quotes, speeding up the decision-making process.
Each provider has its strengths, so the best choice depends on your business’s specific needs.
Recommendations
Based on the comparison above, we’ve outlined specific recommendations tailored to industry needs. These suggestions match provider capabilities with the challenges unique to each sector:
For Online Gaming and Gambling Businesses
PaymentCloud stands out as a solid choice for gaming operators. It offers strong fraud prevention tools and supports multiple currencies, making it well-suited for the growing gaming market.
For CBD and Alternative Health Products
HighRiskPay is ideal for merchants in this space, especially those with challenging credit histories. Its high approval rates and expertise in handling CBD transactions help businesses navigate the industry’s complex regulations.
For Adult Entertainment Businesses
Secured Payments is a reliable option for adult entertainment merchants. Its advanced fraud prevention, chargeback management, and 24/7 support meet the stringent demands of this sector.
For High-Volume Merchants
Soar Payments is designed for businesses handling large transaction volumes. It offers flexible pricing and proactive chargeback management to keep operations running smoothly.
For International Operations
Inovio excels in supporting multi-jurisdictional businesses with its global infrastructure and customizable pricing options.
When selecting a provider, consider these key factors to ensure the best fit for your business:
- Transaction Volume: Assess your monthly processing needs and ensure the provider can scale alongside your growth.
- Chargeback History: If chargeback rates exceed 1% [1], opt for a provider with strong prevention tools.
- Geographic Reach: Confirm that the processor supports all the regions where you operate.
- Technical Integration: Look for a solution that integrates seamlessly with your current systems.
- Support Requirements: Evaluate the provider’s customer support and account management capabilities to match your needs.
