Introduction
Running a business that falls into the high-risk category comes with unique challenges, especially when it comes to payment processing. Traditional banks and payment processors often hesitate to work with businesses in industries like travel, CBD, adult services, or online gaming due to increased risks of chargebacks, fraud, and regulatory issues.
That’s where high-risk merchant account providers in the USA step in. These specialized providers help businesses accept credit card payments securely while offering fraud protection, chargeback management, and compliance support.
In this article, we’ll dive deep into what high-risk merchant accounts are, why some businesses need them, the best providers in the USA, and how to choose the right one.
What Is a High-Risk Merchant Account?
A high-risk merchant account is a type of merchant account designed for businesses that traditional payment processors consider risky due to:
- High chargeback ratios.
- Operating in regulated industries.
- Selling subscription-based or international products.
- Having limited business history or poor credit scores.
High-risk merchant accounts come with stricter terms, higher processing fees, and sometimes rolling reserves. However, they provide access to essential payment solutions that help businesses grow.
Why Businesses Are Classified as High-Risk
Not every business faces the same level of risk. Here are common reasons why payment processors categorize some businesses as high-risk:
| Reason | Examples |
|---|---|
| High Chargeback Rates | Subscription services, online coaching, trial offers |
| Industry Type | CBD, adult entertainment, travel, gambling |
| Legal & Regulatory Concerns | Cannabis, firearms, financial services |
| International Sales | Businesses selling to multiple countries |
| Credit or Business History | New businesses or owners with poor credit |
Common Industries Requiring High-Risk Merchant Accounts
Many industries fall under the high-risk umbrella. Some of the most common include:
- CBD and Nutraceuticals
- Travel Agencies and Ticketing Services
- Adult Entertainment & Dating Sites
- Gambling & Online Gaming
- Subscription Box Services
- E-cigarettes & Vape Products
- Debt Collection Agencies
If your business is in one of these sectors, working with a specialized USA-based high-risk merchant account provider is essential.
Key Features of High-Risk Merchant Account Providers
When choosing a high-risk merchant account provider, look for features that protect your business and support long-term growth.
- Chargeback Protection – Advanced tools to reduce disputes.
- Fraud Prevention Systems – AI-driven monitoring and detection.
- Multiple Payment Options – Credit cards, debit cards, ACH, and e-wallets.
- Rolling Reserves – Funds held back as a safeguard against chargebacks.
- Multi-Currency Support – Essential for global businesses.
- Integration with E-commerce Platforms – Compatibility with Shopify, WooCommerce, Magento, etc.
Top High-Risk Merchant Account Providers in the USA
Here’s a breakdown of some of the leading high-risk merchant account providers in the United States:
| Provider | Best For | Key Features | Highlights |
|---|---|---|---|
| PayKings | CBD, adult, and vape businesses | Chargeback protection, multiple gateways, ACH payments | Works with 100+ banks worldwide |
| Durango Merchant Services | International high-risk businesses | Fraud prevention, offshore accounts, high approval rates | Tailored solutions for global sales |
| eMerchantBroker (EMB) | High chargeback industries | Chargeback shield, quick approvals, multiple payment options | Fast setup and approval |
| Host Merchant Services | E-commerce and retail high-risk merchants | 24/7 support, secure gateways, ACH processing | Transparent pricing |
| Soar Payments | Travel, nutraceuticals, coaching industries | Fraud prevention, recurring billing support | US-based specialists in high-risk processing |
Advantages of Using High-Risk Merchant Account Providers
Working with the right provider offers multiple benefits:
- Business Continuity – You won’t risk account termination due to industry classification.
- Global Reach – Accept payments from international customers.
- Reduced Chargebacks – Providers offer tools to lower disputes and losses.
- Scalability – Process higher volumes of transactions as your business grows.
- Improved Customer Experience – Multiple payment options lead to higher conversions.
Challenges of High-Risk Merchant Accounts
While they open doors, high-risk accounts also come with drawbacks.
| Challenge | Impact on Business |
|---|---|
| Higher Fees | Increased transaction costs |
| Rolling Reserves | Limited access to funds |
| Strict Monitoring | More frequent audits and compliance checks |
| Longer Approval Times | Delays in account setup |
Understanding these challenges helps businesses prepare and choose providers who offer fair terms.
How to Choose the Best High-Risk Merchant Account Provider in the USA
When evaluating providers, keep these factors in mind:
- Industry Expertise – Does the provider specialize in your business sector?
- Transparent Pricing – Look for clear fees without hidden charges.
- Chargeback Management Tools – Providers should help minimize disputes.
- Integration Options – Ensure smooth compatibility with your website or POS system.
- Customer Support – 24/7 assistance can be critical for online businesses.
- Reputation – Check reviews, testimonials, and industry recognition.
Steps to Get Approved for a High-Risk Merchant Account
Approval can take longer than standard accounts, but preparation helps.
- Prepare Business Documents – Tax ID, business license, bank statements.
- Be Transparent About Business Model – Honest disclosure builds trust.
- Show Financial Stability – Positive cash flow improves approval chances.
- Implement Fraud Prevention Measures – Providers value proactive businesses.
- Work with a Specialized Provider – Choose companies familiar with high-risk accounts.
Costs of High-Risk Merchant Accounts in the USA
High-risk accounts generally come with higher fees than standard merchant accounts.
| Fee Type | Typical Range |
|---|---|
| Setup Fee | $0 – $500 |
| Monthly Fee | $10 – $50 |
| Transaction Fee | 2.5% – 5% per transaction |
| Chargeback Fee | $20 – $100 per incident |
| Rolling Reserve | 5% – 10% of transactions |
While these costs may seem steep, they ensure your business can accept payments without constant interruptions.
Real-World Example
A US-based CBD company struggled with mainstream processors due to regulatory hurdles. After switching to a high-risk merchant account provider, they gained:
- Approval within two weeks.
- Access to multi-currency processing.
- Chargeback protection tools that reduced disputes by 40%.
This example shows how the right provider can transform a high-risk business’s payment processing.
Frequently Asked Questions (FAQs)
Q1: Are high-risk merchant accounts only for online businesses?
No. Both online and brick-and-mortar businesses may require high-risk accounts depending on their industry.
Q2: Can I switch from a high-risk to a regular merchant account?
Yes. Over time, if your chargeback ratios improve and risks decrease, some providers may reclassify your account.
Q3: Do high-risk providers in the USA work with international clients?
Many do. Providers like Durango Merchant Services and PayKings support global businesses.
Q4: Is getting approved difficult?
It can be more challenging than standard accounts, but choosing a provider specializing in your industry increases approval chances.
Conclusion
High-risk businesses often face hurdles in securing reliable payment processing, but specialized high-risk merchant account providers in the USA make it possible to operate smoothly and securely.
While fees are higher, these providers offer fraud protection, chargeback management, global payment support, and long-term stability that traditional banks cannot provide.
If your business operates in a high-risk sector, partnering with the right provider ensures you can accept payments confidently and focus on growth.