The Best High Risk Merchant Account Providers In 2023 (You Must Know)

Introduction

Imagine you’re a business owner with a promising idea for a product or service. You’ve put in countless hours of hard work and dedication to get your business up and running. You’ve built a website, created a marketing plan, and are ready to start making sales. But there’s a problem – when you go to set up a payment processing system, you’re told that you need a high risk merchant account.

This was the reality faced by a friend of mine, a small business owner who had poured everything into his startup. He had no idea what a high risk merchant account was or why he needed one. He just knew that without it, he wouldn’t be able to accept credit card payments and his business would suffer.

As it turns out, high risk merchant accounts are necessary for certain types of businesses that are deemed risky by payment processors. This includes industries such as adult entertainment, online gambling, and CBD oil. While it may seem unfair, these businesses are seen as high risk because they have a higher likelihood of chargebacks, fraud, or legal issues.

But fear not, my fellow business owners. In this blog, we’ll dive into the world of high risk merchant account providers and help you navigate the process of finding the right one for your business. We’ll explore the factors to consider when choosing a provider, highlight some of the top providers in the market, and provide tips for a successful application process. So sit back, relax, and let’s get started on your journey to accepting payments like a pro.

Factors to Consider When Choosing a High Risk Merchant Account Provider

Here are the key points to consider when choosing a high risk merchant account provider:

Security and Fraud Prevention Measures

High risk businesses are more susceptible to fraud and chargebacks, so it’s essential to work with a provider that has robust fraud prevention tools in place, such as address verification and real-time fraud monitoring. The provider should also have secure payment processing systems that comply with industry standards, such as PCI DSS.

Customer Service and Support

High risk merchants require a high level of support and assistance, particularly when dealing with issues such as chargebacks and fraud. The provider should have a responsive and knowledgeable customer support team that can provide assistance and guidance when needed.

Fees and Rates

While high risk merchants can expect to pay higher fees and rates compared to traditional payment processors, it’s still essential to find a provider that offers competitive rates and fees. Businesses should also be aware of any hidden fees or charges, such as setup fees, cancellation fees, or monthly minimum fees.

Integration with Payment Gateways

The provider should be able to integrate with the payment gateway that the business is using to process payments, ensuring a seamless and efficient payment processing experience.

Flexibility and Customization

The provider should be able to offer customized solutions that cater to the specific requirements of the business, such as payment plans, customized reports, and other features.

By considering these factors, businesses can find a high-risk merchant account provider that offers reliable, secure, and customized payment processing solutions that meet their specific needs.

Best High-Risk Merchant Account Providers

Choosing the right high-risk merchant account provider is crucial for businesses operating in industries such as gambling, adult entertainment, or CBD. Here are some of the top high-risk merchant account providers in the industry.

ExpoNovum

ExpoNovum is a high-risk merchant account provider that offers custom-tailored solutions for businesses in various industries, including CBD, nutraceuticals, and e-commerce. They have a team of experienced underwriters that specialize in high-risk industries, which helps ensure a high approval rate. ExpoNovum also offers competitive rates and fees, with no hidden costs or long-term contracts.

One of the unique features of ExpoNovum is its proprietary technology, which allows for seamless integration with various payment gateways and shopping cart platforms. This means that businesses can easily process payments online, and the integration process is fast and straightforward.

ExpoNovum also has advanced fraud prevention tools in place, including real-time transaction monitoring and chargeback prevention, to help protect businesses from fraudulent transactions. They provide 24/7 customer support and have a responsive team of experts ready to provide assistance when needed.

Pros Of ExpoNovum

1. Expertise in high-risk industries: ExpoNovum specializes in providing merchant accounts to high-risk industries, which means they have the necessary knowledge and experience to handle the unique challenges faced by these businesses.
2. Competitive pricing: ExpoNovum offers competitive pricing and doesn’t charge any application or setup fees, which can be significant cost savings for businesses.
3. Quick approval process: ExpoNovum has a fast approval process, with some merchants being approved in as little as 24 hours. This can be especially beneficial for businesses that need to start accepting payments quickly.
4. Flexible payment solutions: ExpoNovum offers a variety of payment solutions, including traditional credit and debit card processing, as well as alternative payment methods like ACH and e-checks. This flexibility allows businesses to offer multiple payment options to their customers.
5. Dedicated customer support: ExpoNovum provides dedicated customer support to its merchants, which can be a valuable resource for businesses that need help navigating the complex world of high-risk merchant accounts.

PaymentCloud

PaymentCloud is a leading high-risk merchant account provider that offers customized solutions for businesses in various industries, including CBD, firearms, and e-commerce. They have a 98% approval rate and offer competitive rates and fees. PaymentCloud also has advanced fraud prevention tools in place, ensuring secure payment processing.

Pros Of PaymentCloud

• Easy application process and fast approval time
• Competitive rates and fees
• Supports a wide range of industries and businesses
• Dedicated account representative and 24/7 customer support
• Accepts high-risk businesses with poor credit or previous chargebacks

Cons Of PaymentCloud

• Higher transaction fees for high-risk businesses
• Limited international payment processing options
• May require a reserve fund or rolling reserve for certain businesses

Durango Merchant Services

Durango Merchant Services is a high risk merchant account provider that specializes in businesses such as CBD, nutraceuticals, and e-commerce. They offer flexible payment solutions, including ACH and e-check processing, as well as competitive rates and fees. Durango also has a responsive customer support team available 24/7 to provide assistance and guidance when needed.

Pros Of Durango Merchant Services

• Offers customizable payment processing solutions
• Supports a wide range of high-risk industries and businesses
• Fast approval time and easy application process
• Dedicated account manager and 24/7 customer support
• No application or setup fees

Cons Of Durango Merchant Services

• Higher transaction fees for high-risk businesses
• May require a reserve fund or rolling reserve for certain businesses
• Limited international payment processing options
• Limited integrations with popular eCommerce platforms

Host Merchant Services

Host Merchant Services is a full-service payment processor that offers customized solutions for high-risk businesses, including firearms, tobacco, and adult entertainment. They have advanced fraud prevention tools in place and offer competitive rates and fees. Host Merchant Services also provides a free terminal program, allowing businesses to accept payments in person.

Pros:

• No monthly minimums or annual fees
• Offers low transaction fees for high-risk businesses
• Supports a wide range of industries and businesses
• Offers chargeback protection and fraud prevention tools
• Excellent customer service and support

Cons:

• May require a reserve fund or rolling reserve for certain businesses
• Limited international payment processing options
• Longer approval time compared to other providers

SMB Global

SMB Global is a high-risk merchant account provider that offers customized solutions for businesses in various industries, including e-commerce, travel, and online gambling. They have a fast application process, with approvals in as little as 24 hours, and offer competitive rates and fees. SMB Global also provides advanced fraud prevention tools and 24/7 customer support.

Pros Of SMB Global

• Specializes in high-risk payment processing solutions
• Competitive rates and fees
• Supports a wide range of industries and businesses
• Dedicated account representative and 24/7 customer support
• Offers chargeback protection and fraud prevention tools

Cons Of SMB Global

• May require a reserve fund or rolling reserve for certain businesses
• Higher setup fees compared to other providers
• Limited international payment processing options
• Longer approval time compared to other providers

Instabill

Instabill is a high-risk merchant account provider that offers customized solutions for businesses in various industries, including CBD, nutraceuticals, and e-commerce. They offer competitive rates and fees, as well as a fast application process, with approvals in as little as 48 hours. Instabill also provides advanced fraud prevention tools and 24/7 customer support.

Pros Of Instabill

• Offers customized payment processing solutions
• Supports a wide range of high-risk industries and businesses
• Dedicated account manager and 24/7 customer support
• Offers chargeback protection and fraud prevention tools
• Multiple international payment processing options

Cons Of Instabill

• Higher transaction fees for high-risk businesses
• May require a reserve fund or rolling reserve for certain businesses
• Longer approval time compared to other providers
• Limited integration with popular eCommerce platforms.

When choosing a provider, it’s essential to consider factors such as security and fraud prevention measures, customer service and support, fees, and rates, integration with different payment gateways, and flexibility and customization. By evaluating these factors and researching various providers, businesses can find the right high-risk merchant account provider to meet their specific needs.

How to Apply for a High Risk Merchant Account

Research potential providers

The first step in applying for a high-risk merchant account is to research potential providers. Look for providers that specialize in high-risk industries and have experience working with businesses similar to yours. Check their fees, approval rates, and customer reviews to ensure they are a good fit.

Gather required documentation

Before applying for a high-risk merchant account, gather all the required documentation. This may include business licenses, bank statements, tax returns, and identification documents for the business owner(s).

Submit an application

Once you have identified potential providers and gathered the necessary documentation, submit an application. This typically involves filling out an online form or contacting the provider directly. Be sure to provide accurate and detailed information about your business, including the products or services you offer, your target market, and your processing volume.

Underwriting process

After submitting an application, the provider will review your business to assess the risk level. This may involve a credit check, a review of financial statements, and other background checks. The underwriting process can take anywhere from a few days to a few weeks.

Approval or denial

Once the underwriting process is complete, the provider will either approve or deny your application. If approved, the provider will provide you with a contract outlining the terms and fees of the high-risk merchant account. Be sure to review the contract carefully and ask any questions before signing.

Integration

Once you have signed the contract, the provider will work with you to integrate their payment processing solution with your website or point-of-sale system. They will provide you with the necessary code or instructions to ensure seamless integration.

Start processing payments

Once the integration is complete, you can start processing payments through your high-risk merchant account. Be sure to follow all rules and regulations to avoid chargebacks and other issues.

Applying for a high-risk merchant account can be a complex and time-consuming process, but it is essential for businesses in high-risk industries to be able to accept payments securely and efficiently. By following these steps and working with a reputable provider, you can streamline the process and ensure a successful outcome.

Final Thoughts

In conclusion, choosing the right high-risk merchant account provider is crucial for businesses operating in high-risk industries. With so many providers available, it can be challenging to navigate the application process and find a reliable partner. However, by understanding the factors to consider when choosing a provider, researching top options, and following the steps to apply, you can secure a high-risk merchant account that meets your business needs.

If you are in need of a high-risk merchant account provider, take the time to research your options and choose a provider that has experience working with businesses like yours. With the right partner, you can accept payments securely and efficiently and grow your business.

At the same time, it’s important to keep in mind that regulations and requirements can change frequently, so it’s essential to stay up-to-date with the latest developments in your industry. By doing so, you can ensure that you remain in compliance and avoid any penalties or other legal issues that could harm your business.

So, take action now and choose the best high-risk merchant account provider for your business to secure your financial future.

Overall, a high-risk merchant account provider is an essential partner for businesses in high-risk industries that need to process payments online. By working with a reputable provider, businesses can ensure that their payment processing needs are met with efficiency, security, and flexibility.