High-risk merchant account providers offer merchant accounts and payment processing services to businesses that operate in high-risk industries. Businesses in industries that are age-restricted, like gambling and tobacco, or have high rates of fraud or chargebacks, such as dropshipping, nonprofits and web design, often struggle to find payment processing companies that are willing to work with them.
The best high-risk merchant account providers have competitive pricing and popular integrations and accept a variety of payment methods; some even sell point-of-sale (POS) solutions or easily integrate with POS systems.
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Here are our recommendations for high-risk merchant account providers.
Sponsored partner picks for
High approval rates
HighRiskPay.comBest High-Risk Merchant Account Providers
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Input your business’s monthly transaction details and we’ll help you sort from the best valueProduct | Cost Estimate | Payment processing fees | Cost Estimate | Learn more | ||
|---|---|---|---|---|---|---|
National Processing Learn more on National Processing's secure website | Get an estimated monthly cost for your business. | 5.0/5 Best for Dedicated account manager | In-person: 2.5% + $0.10 Online: 2.9% + $0.30 | $9.95 for Basic In-Person Package. | Get an estimated monthly cost for your business. | Learn more on National Processing's secure website |
PaymentCloud | 4.5/5 Best for Software integrations | 2.4% + $0.10 to 3.5% + $0.25 on average. | $0.00 to $50. | |||
Payline | 4.5/5 Best for Free trial | In-person: 0.4% + $0.10 Online: 0.75% + $0.20 Plus interchange | $10.00 in person; $20 online. | |||
HighRiskPay.com | Best for High approval rates | 2.95% + $0.25 May vary with credit or transaction type. | $9.95 | |||
Inovio | Best for High-risk online payment processing | N/A Quote-based. | N/A Quote-based. | |||
Soar Payments | Best for Variety of high-risk industries | N/A Quote-based. | N/A Quote-based. |
Our pick for
Dedicated account manager
National Processing supports low-risk and high-risk businesses alike, offers low in-person rates and provides new merchants with a dedicated account manager for more tailored support. Additionally, if your business processes at least $10,000 per month, the company guarantees it’ll beat your current processing rates or give $500.
National Processing
Learn more
on National Processing's secure website
Monthly fee
$9.95
for Basic In-Person Package.
National Processing works with high-risk merchants, including those with bad credit or no credit, integrates with chargeback management programs and uses fraud prevention tools. Unlike some of its competitors that offer more generalized support, National Processing sets high-risk businesses up with a dedicated account manager. Its lack of long-term contracts and transparent pricing make it a good option for lower-risk businesses as well.
Pros
- No termination fees, long-term contracts or PCI compliance fees.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
- Compatible with multiple POS system providers, including Clover.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Basic plans for processing in-person and online transactions are separate.
- Deposits take 2-3 business days for basic plans.
Our pick for
Software integrations
PaymentCloud merchants can integrate with a variety of business software programs in the accounting, enterprise resource management, customer relationship management, analytics, e-commerce and shipping spaces. Supported high-risk industries include accounting, alcohol, CBD, dropshipping, hospitality, travel agencies and tech support.
PaymentCloud
Payment processing fees
2.4% + $0.10
to 3.5% + $0.25 on average.
Monthly fee
$0.00
to $50.
PaymentCloud is one of a limited number of payment processors that work with high-risk merchants. It offers a long list of popular software integrations and can accept in-person, online and recurring payments.
Pros
- Works with high-risk businesses.
- New merchants may qualify for a free terminal.
- 24/7 support.
Cons
- Website isn’t transparent about processing rates.
- May charge PCI compliance fees.
- Some plans require a contract and charge steep termination fees.
Our pick for
Free trial
Unlike some of its competitors, Payline extends one-month free trials to qualifying high-risk merchants so that you can try it out before committing. And if you commit but change your mind down the road, there are no termination fees.
Payline
Monthly fee
$10.00
in person; $20 online.
Even high-risk businesses may qualify for one month free with Payline, which allows you to try the platform risk-free before deciding if it’s the right fit. After submitting an application and getting approved, Payline creates a custom solution for your business. Keep in mind that processing rates may be higher than the ones it advertises for lower-risk businesses. Supported high-risk industries include cannabis, travel and credit repair.
Pros
- No long-term contracts or cancellation fees.
- First month or two (depending on the business) is free.
- Works with high-risk merchants.
- No PCI compliance fees.
- 24/7 support.
- Compatible with multiple POS terminal providers, including Clover.
Cons
- Separate monthly fees for in-person and online processing.
- Must contact Payline for information on hardware costs.
Our pick for
High approval rates
If you’ve struggled to find a high-risk processor for your business, HighRiskPay.com might be worth a try, considering its 99% approval rate. Make sure to compare quotes from multiple companies to ensure you’re getting the best rate. Supported industries include adult-themed businesses, CBD, dating apps, online pharmacies and dropshipping.
HighRiskPay.com
Payment processing fees
2.95% + $0.25
May vary with credit or transaction type.
Monthly fee
$9.95
The merchant account services application process can be time consuming, especially for businesses in high-risk industries. HighRiskPay.com advertises a 99% approval rating and 24-hour approval, which could help high-risk businesses start accepting credit card transactions more quickly. The provider also works with businesses that have bad credit, though processing fees may be higher.
Pros
- Transparent pricing.
- Accepts in-person, online and recurring payments.
- No contract or setup fee.
Cons
- Monthly fee required.
- Limited integrations.
Our pick for
High-risk online payment processing
In addition to offering a hosted checkout page and virtual terminal, Inovio lets online high-risk businesses price goods and services in 49 different currencies. It also has online subscription billing software for businesses in a variety of industries, including rentals, meal delivery and software.
Inovio
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Inovio not only accepts high-risk merchants but also offers a virtual POS in addition to its payment processing solutions, making it an appealing all-in-one solution for high-risk merchants with online businesses that are looking for a single point of contact for their payment needs.
Pros
- All-in-one processing and POS solution.
- Processes international payments.
Cons
- Lack of pricing transparency.
- No option for processing in-person payments.
- Limited integrations.
Our pick for
Variety of high-risk industries
Some of the industries supported by Soar Payments include antiques, CBD, credit repair, medical billing, telemedicine and property management — plus dozens more. The company, however, does not support ultra-high-risk industries like adult businesses, bitcoin, gambling and debt collection.
Soar Payments
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Soar Payments is unique among payment processors for its list of more than 50 industries it serves. From low- to high-risk and everything in between, Soar Payments is likely to have a solution for your business.
Pros
- Accepts in-person, online and recurring payments.
- Offers several popular integrations.
- No setup fees.
Cons
- Lack of pricing transparency.
- Restrictions on recurring billing approval.
Payline: Best for free trial
Why we like it: Payline Data offers competitive pricing of interchange plus a low per-transaction rate. Depending on the types of credit cards you accept, such as Visa or American Express, its rates could save you money compared with competitors’ rates. Read our full Payline Data review.
- $10 for in-person sales.
- $20 for online sales.
Offers mobile card readers, countertop terminals and full POS systems. Cost varies by provider and is quote-based.
- Interchange plus 0.4% and 10 cents for in-person transactions.
- Interchange plus 0.75% and 20 cents for online transactions.
Software integrations: QuickBooks and major e-commerce platforms including Shopify, WooCommerce and BigCommerce.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party POS hardware from providers like Clover, Ingenico and ID Tech.
PaymentCloud: Best for software integrations
Why we like it: PaymentCloud stands out from the competition with a large set of software integrations, a free terminal for qualifying merchants and tools dedicated to preventing fraud and managing chargebacks (although chargebacks come with a $25 fee). PaymentCloud claims to have a 98% approval rate for high-risk merchants. Read our full PaymentCloud review.
$0 to $50.
Offers handheld POS terminals, mobile card readers, full POS systems and payment accessories. Cost varies depending on the third-party hardware provider.
Quote-based. You’ll have to call to get specific pricing information for your business, but average ranges are:
- 2.4% plus 10 cents for low-risk retail merchants.
- 2.8% plus 25 cents for medium-risk businesses, like e-commerce shops.
- 3.5% plus 25 cents for high-risk merchants.
Software integrations: Customer relationship management platforms including Zendesk and SalesForce, e-commerce platforms including Shopify and WooCommerce, online marketplaces including Etsy and eBay, and accounting software like QuickBooks and FreshBooks.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Third-party options available from companies like Clover.
National Processing: Best for dedicated account manager
Why we like it: National Processing offers in-person and online payment processing plans, as well as an ACH one for businesses that get paid mostly via e-check. And if your business processes at least $10,000 per month, the company promises $500 if it can't beat your current rates. Read our full National Processing review.
- $9.95 for Basic In-Person Package, Basic E-Commerce Package.
- $19 and up for Premium Package.
Offers handheld POS terminals and countertop registers from Clover, SwipeSimple and Pax.
- $99 and up for the SwipeSimple B250 mobile card reader.
- $230 and up for the Pax A80 countertop terminal.
- $345 and up for the Pax A920 handheld terminal.
- $515 and up for the SwipeSimple Aries8 POS system.
- $585 and up for the Clover Flex handheld terminal.
- $765 and up for the Clover Mini POS system.
- $835 and up for the Pax E700 POS system.
- $1,605 and up for the Clover Solo POS system.
- $1,735 and up for the Clover Duo POS system.
- Basic In-Person Package: 2.5% plus 10 cents per transaction.
- Basic E-Commerce Package: 2.9% plus 30 cents per transaction.
- Premium Package: 2.41% plus 10 cents.
Software integrations: QuickBooks, WooCommerce, BigCommerce, Ecwid, Zendesk and Shopify.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party systems, including Clover.
HighRiskPay.com: Best for high approval rates
Why we like it: HighRiskPay.com clearly outlines its rates for all types of businesses, including those with bad credit. It also shows the rate for high-risk businesses as well as those offering adult-themed products. Although that industry has a higher rate, it’s only 25 cents more per transaction and gets the same percentage charged as other high-risk businesses.
$9.95.
HighRiskPay.com does not sell its own hardware.
2.95% plus 25 cents for high-risk merchants, but may vary with credit or type of transaction.
Software integrations: E-commerce platforms including Shopify, Wix, Shift4Shop (formerly 3dcart) and Opencart.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: None.
Inovio: Best for high-risk online payment processing
Why we like it: Inovio stands out with its excellent online payment processing options. It offers secure checkout pages, customizable payment gateway APIs and the ability to manage multiple locations. And because the company will handle your gateway and processing along with the POS, you only have to contact one company for support.
Quote-based.
N/A; online-only.
Quote-based.
Software integrations: Includes Infusionsoft for marketing and sales, Nats for advertising and CartConnect.
Type of transactions accepted: Online and recurring payments.
POS: compatibility Inovio virtual POS solution available.
Soar Payments: Best for variety of high-risk industries
Why we like it: Compared with competitors, Soar Payments' website includes the most extensive list of industries served, with over 50 industries listed. For businesses that are nontraditional or are having trouble finding a processor that serves their industries, it's a strong option.
Quote-based.
Can provide to you or help you reprogram existing; pricing is quote-based.
Quote-based.
Software integrations: Accounting systems including QuickBooks and Zoho; e-commerce platforms including Shopify, BigCommerce and WooCommerce; and marketing systems including Click Funnels and Infusionsoft.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party POS systems.
A high-risk merchant account provider sets up a dedicated merchant account that holds a high-risk business’s credit card funds until they’re transferred to the business’s bank account. In many cases, they also double as the business’s payment processor to facilitate electronic payments, like credit and debit cards. They may offer additional merchant services, like POS hardware and software, too.
Some high-risk merchant account providers work exclusively with high-risk businesses, while others also work with low- and medium-risk businesses.
Learn more about high-risk merchant accounts
Dig into why your high-risk business needs a merchant account on top of payment processing services, as well as tips on finding the right one for your business.
The “high-risk” category encompasses a wide variety of business types and industries, and some of them may come as a surprise. Perhaps more obvious high-risk businesses include those that deal in firearms and ammunition, cannabis and CBD, pawn shops and tobacco and vaping products. However, the high-risk label can also apply to subscription-service businesses, nonprofits, advertising agencies, software as a service (SaaS) companies and others.
A primary factor that contributes to being considered “high-risk” is whether the business model lends itself to higher rates of chargebacks. For example, subscription-service businesses where users are billed on a recurring basis are more likely to receive dispute charges when a user signs up for the service not realizing it will auto-renew and charge their card each month. Other factors can include transaction type (online and over-the-phone, card-not-present transactions are more susceptible to credit card fraud), international sales and high sales volumes.
Here are several factors to consider while searching for the best high-risk merchant account provider for your business.
- Payment processing costs: Per-transaction fees for high-risk businesses are typically more expensive than they are for low-risk ones. That being said, high-risk merchant account providers should still offer fair rates, which ideally fall under 4% for in-person transactions. If you go with an interchange-plus provider as opposed to a flat-rate option, don’t hesitate to try negotiating lower markups based on your specific industry and transaction history.
- Chargeback fees: What does the merchant account provider charge for each disputed transaction that results in a refund to a customer? Typically chargebacks cost $15 to $25 each, but some providers charge more or don’t charge for them at all.
- Accepted transaction types: Consider the types of transactions your business processes and whether the high-risk payment processor will accept those. Some may accept only online transactions (such as Inovio), whereas others will accept credit card payments both in person and online.
- Integrations: Most high-risk payment processors provide at least a few integrations with third-party applications and business software. It’s helpful to choose a solution that integrates directly with tax and accounting software, and if you sell online, you likely want a processor that integrates with popular e-commerce platforms and marketplaces.
Last updated on July 12, 2024
Methodology
NerdWallet’s ratings of payment processing providers reward companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
