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The Best High-Risk Credit Card Processing: How To Choose

If you are a high-risk business looking to accept credit card payments, you might be wondering how to choose a card processor that’s right for your business. It is no secret that a high-risk merchant can have a challenging time finding payment processing that is efficient and affordable. 

In this article, we will cover how to choose the best high-risk credit card processing for your business.

What Is High-Risk Credit Card Processing?

High-risk credit card processing is a service that allows high-risk merchants to accept credit card payments. The process consists of the merchant, the customer, and the card company. 

What Is A High-Risk Merchant Account?

A person's hand next to a red block that says risk and three blocks below it with the words high, medium, and low on each one of them.

A high-risk merchant account is a account that helps a high-risk business process card payments. A high-risk merchant account usually comes equipped with chargeback protection and other special features for high-risk merchants.

High Vs. Low-Risk Merchant Accounts

Before you apply for the best high-risk credit card processing, you will need to evaluate whether you are a high or low-risk merchant. There are several factors that can differentiate between a high and low-risk merchant account.

High-Risk Merchant Account

Factors like chargebacks and processing history can put your business in the high-risk category. 

There are a few key characteristics that will categorize a business as high-risk, including:

  • $20,000 or more in sales per month
  • Credit card transactions averaging over $500
  • Business with any country known for experiencing high levels of fraud
  • Poor credit history
  • A large number of chargebacks

Low-Risk Merchant Account

A low-risk merchant account needs to meet many requirements, including a smaller number of transactions, low chargebacks, and low revenue. The following are additional requirements of low-risk merchants:

  • Credit card transactions are usually $500 or less.
  • The industry is low-risk
  • Transactions are less than $20,000 per month.
  • A low chargeback ratio
  • A business that resides in a low-risk area
  • A low rate of returns

What Types Of Businesses Are Considered High-Risk?

A woman playing a slot machine symbolizes the gambling industry, one type of business that is high-risk.

There are several industries that are considered to be in the high-risk category, including:

  • Financial services
  • Adult entertainment
  • Background check services
  • CBD products
  • Gambling
  • Credit monitoring
  • Credit Repair
  • Dating services
  • Debt collectors
  • Financial planning
  • Firearms
  • Tobacco
  • Pharmaceuticals
  • Healthcare
  • Travel
  • Gaming
  • Nutraceuticals
  • Magazine sales
  • Social networking sites
  • Technical support
  • Car parts
  • Sports betting

Benefits Of High-Risk Credit Card Processing

There are several benefits of using the best high-risk credit card processing, including:

1. Access To More Customers
Using the best high-risk credit card processing can open your business up to more customers and expand your customer base. If your business can’t accept payments with common methods such as cards, you are losing out on potential additional revenue from more customers. By accepting the correct payment options, you give customers the convenience they are looking for when purchasing online.

2. Credit History Isn’t An Issue

A piece of paper with the word credit history and a gray pen pointing toward it.

As a business owner, credit history can affect your business negatively. Using high-risk credit card processing increases the business’s reach in a way they may not have been able to previously. High-risk credit card processing is ideal for businesses that have had financial issues and bad credit.

3. Minimal Fees
One of the concerns that a business often has about high-risk credit card processing is that it comes with higher fees. However, high-risk card processing is only marginally more expensive than low-risk processing. If you find the right high-risk solution, the processing fees will be minimal.

4. Integrations
The best high-risk credit card processing will integrate easily with your existing systems. They should integrate with accounting or bookkeeping software, any POS, payment gateways, and more.

5. Fast Funding
Using the best high-risk credit card processing will provide you with fast funding for your purchases, so the money is deposited within a day or a few days after a transaction occurs. This can particularly matter for a small business that is concerned about cash flow.

6. Increased Credibility
By using the best high-risk credit card processing, you will be able to offer your customers various types of payments and an established payment processing system. These will give your customers confidence in the credibility of your company when making purchases.

7. Payment Option Diversity
The more payment types that your business can accept, the more revenue you can make. Establishing a broad level of payment diversity is crucial to having a successful business. Businesses that can’t accept certain types of payments will often lose customers.

8. Ongoing Support
Using the best high-risk credit card processing goes far beyond just the setup. It will involve continuous management of systems to ensure a secure and seamless checkout process. The right card processor will be available to help you solve issues 24/7 through various channels.

9. International Access
Traditional payment processing tends to stay away from foreign markets. High-risk credit card processors are more at ease with international and foreign markets. If you are looking to do business internationally, this can be a huge plus.

10. Subscriptions
If your business has a subscription-based model, high-risk credit card processors will often accommodate this model, whereas a traditional payment processor may not.

What To Keep In Mind When Applying For High-Risk Credit Card Processing

If you are a high-risk merchant looking for high-risk credit card processing, there are some things to keep in mind when applying, including:

  • Maintaining A Healthy Cash Flow: The majority of processors like to see a good cash flow to your business bank account. This can assure them you are financially stable and less risky.
  • Reduce Chargebacks: When chargebacks occur, analyze the reasons to try to combat future chargebacks if possible. Keeping your chargebacks low will also ensure a processor you are less risky.
  • Be Transparent: Disclose all relevant information during the application. Processors may ask for detailed information about your finances and business, and it is best to be transparent.
  • Put Together Documents: Ensure that you have six months of bank statements, a few years of tax returns, and other necessary documents together and ready when applying. 
  • Follow Guidelines: Follow the guidelines of your processor. When you apply, it’s best to be flexible and see if there is anything you can do to lower your risk. Follow any recommendations the processor puts forward. 

Things To Look For In The Best High-Risk Credit Card Processing

When you are looking for the best high-risk credit card processing, it is important to do your research when choosing one. 

The following are features to look for in the best high-risk credit card processing:

  • Timely support: Any fraudulent transaction through your website can cause issues that compound quickly. Choose a provider that offers proactive support and is available to be reached through multiple channels at convenient times. 
  • Custom payment options: Your card processor should be able to meet your business needs by enabling custom payment options.
  • No hidden fees: The monthly cost of the best high-risk credit card processing and merchant account should be easily found on the processor’s website. There should be no surprise fees when it comes to the process.
  • Up-to-date technology: Your high-risk processor should be up to date on payment trends. Avoid high-risk processors that have an outdated website, excessive downtimes, and a lack of technical knowledge to meet your business needs.
  • Anti-fraud tools: Since high-risk merchants are more subject to fraud behavior, look for a merchant account that has complex security measures such as chargeback prevention and multifactor authentication.
  • Better money management: High-risk credit card processing allows you to accept digital payments, which allows you to be more organized and manage your cash flow. In some cases, your provider can send you monthly statements to better track your revenue.
  • Customer Convenience: Using the best high-risk credit card processing can provide your customers with the convenience of using the payment methods they prefer, which in turn, can increase your revenue.

Final Thoughts

The best high-risk credit card processing can offer security, ongoing support, multiple payment options for customers, international payment options, simple integrations, fast funding, and 

increased credibility for your business.

Emerchantbroker offers high-risk credit card processing that provides excellent chargeback protection, quick business funding, no hidden fees, useful integrations, a 99 percent approval rate for high-risk merchants, and more.

Check out Emerchantbroker today for the best high-risk credit card processing in the industry.