Choosing the right payment processor is a crucial decision for businesses, particularly for those labeled as high-risk merchants. These businesses expose credit card processors to a higher risk of fraud or chargebacks, resulting in additional fees from credit card providers to balance potential losses from fraudulent transactions. Factors contributing to a business being deemed high-risk include poor or nonexistent credit history, the industry the business operates in, or the financial history of its customers.
High-risk merchants can significantly benefit from a payment processor that understands their unique challenges, offering the best rates, pricing plans, and customer support. Some of the top high-risk payment processors, known for their transparency, customer service, and equitable contract terms, are discussed below.
PaymentCloud specializes in high-risk businesses, operating with a network of third-party processors and banks to facilitate account approval without charging any setup fees. They provide state-of-the-art solutions, evaluating your current processing statement at no cost to ensure you receive appropriate rates monthly.
PaymentCloud also offers various high-risk merchant account options, including POS systems, EMV terminals, virtual terminals, and mobile swipers that can be integrated into any e-commerce platform. Moreover, they assign dedicated account representatives to address any concerns and meet your needs effectively.
eMerchant Broker (EMB)
With a reputation for servicing high-risk businesses globally, eMerchant Broker (EMB) covers a wide range of industries, including airlines, credit repair, e-book, adult entertainment, nutraceuticals, tech support, gaming, electronics, warranty, CBD, telecom, and travel. Their services encompass business funding, chargeback prevention or resolution, ACH processing, merchant cash advances, high-volume payment solutions, point-of-sale solutions, and online payment gateways.
Despite slightly higher fees compared to other industry providers, their 24/7 customer support, flexible pricing, and an impressive 95% approval rate make them a go-to for many high-risk businesses. In addition, EMB holds an A+ rating as a Better Business Bureau (BBB) Accredited Business, further solidifying its credibility.
PaySpace is a reputable choice for medium to large high-risk businesses. With over a decade in operation, they successfully resolve nearly 90% of chargeback disputes. They offer custom anti-fraud solutions and a proprietary system to predict and minimize chargebacks and fraudulent activities. PaySpace supports both 3D and non-3D secure transactions and collaborates with third-party services for more accurate results.
With the ability to process transactions in over 80 currencies across more than 150 countries, PaySpace supports all major global credit cards and a substantial number of alternative payment methods. Their smart payment routing system ensures faster payouts, and as a high-risk merchant, you’ll receive a Unique Billing Descriptor and a direct MID, which works in tandem with PaySpace’s fraud prevention and built-in chargeback software to reduce fraud and chargebacks.
SMB Global exclusively services high-risk and offshore merchants, with a particular focus on high-risk e-commerce businesses. They work with a broad network of processors and banks to open accounts for high-risk merchants, offering a free quote before account confirmation. Each account comes with one free mobile card reader or free countertop terminal.
SMB Global supports ACH payment processing and recurring billing, and you can build a customized mobile processing system with the help of third-party applications. Their automated tools assist with analytics and real-time reports creation to prevent or manage chargebacks effectively.
Durango Merchant Services
Durango Merchant Services is another processor specializing in high-risk merchants, known for supporting international merchants with offshore accounts. Their pricing and contract terms are fair and depend on your risk level, credit, processing history, and business category. They are willing to discuss your pricing options and provide a breakdown of your unique pricing plan.
Setting up an account with Durango is free, even for high-risk merchants. They offer comprehensive payment processing solutions, anti-fraud services, and provide account managers for the duration of your account. Almost all Durango merchants receive month-to-month contracts without any early termination fees.
SOAR Payments offers a unique approach by analyzing which bank best suits your needs based on your risk level. They provide an online price quote with Industry Minimum Pricing, and pre-approvals usually happen within 24 hours. They offer a variety of processing solutions for high-risk merchants, including traditional systems, mobile processing, virtual terminals, and eCommerce payment gateways.
In partnership with Chargeback.com, SOAR has developed a Chargeback Armor package, integrated into NMI payment gateways, to help detect and block fraudulent activity and transactions.
High-risk merchants face specific challenges that necessitate a payment processor with a deep understanding of their needs. It’s essential to choose a processor offering a comprehensive suite of payment solutions, strong chargeback management, robust fraud prevention, and dedicated support. Taking the time to research and compare options can prove invaluable in finding a payment processor that can effectively cater to the unique requirements of high-risk merchants.