High-risk merchant accounts are payment processing services that allow businesses considered to be high-risk by banks to accept credit cards from customers. Businesses classified as high-risk typically are not approved for a traditional merchant account, so you will need a dedicated account that can work with your business type.
Though high-risk merchant accounts almost always have higher fees than traditional accounts, the best ones offer transparent pricing, dedicated customer support, and tools to prevent chargebacks.
High-Risk Merchant Account | Best for |
|---|---|
(Best overall) Small businesses needing fast approval and affordable rates, including topical CBD vendors | |
Online sellers, including international or offshore accounts | |
Interchange-plus pricing for hard-to-place businesses | |
Chargeback monitoring and management | |
Instant quote and automated application process | |
Online CBD sales |
What Are High-Risk Merchants?
A high-risk merchant is a business that may be considered high-risk to banks or other financial institutions. Any business that is prone to chargebacks—operating in an industry that makes it susceptible to financial failure or other potentially questionable circumstances (such as CBD vendors or offshore businesses)—can be classified as high risk. This is because financial institutions are taking on a higher-level of risk working with you.
Examples of high-risk industries*: | Your business may be considered high-risk if you have: |
|---|---|
|
|
*This is just a small sample of industries that could be considered high-risk. Classification is determined differently by every bank and financial institution.
What Is a High-risk Merchant Account?
A merchant account is a type of bank account. Just like certain factors can impact your business’ ability to get insurance coverage or financing, having a high-risk business also makes it harder to open a merchant account.
If your business does not fall under the credit policies of a tier-one traditional bank, your application for a merchant account may be rejected. In this case, you will need to find a merchant account provider that specializes in working with high-risk customers.
The main difference between a traditional merchant account and a high-risk merchant account is it comes with much higher fees and processing volume restrictions. So, it’s important to apply for traditional merchant services before opting for a high-risk provider. See our guide to the best overall merchant services for our recommended providers.
How We Evaluated High-Risk Merchant Accounts
Naturally, we considered rates and fees. However, unlike the best low-risk merchant services, high-risk merchant account providers don’t publicly disclose pricing. That is because these businesses partner with many different underwriting banks and will help you fill an application out to shop around for the best rates. So, rates will vary for each business.
We looked at the overall pricing structures and fee transparency for each company. For example, we reviewed average contract length, cancellation fees, rolling reserve policies, and whether they offer interchange-plus pricing to qualified merchants.
In addition to fair and transparent pricing, high-risk merchants specifically need dedicated customer support plus chargeback prevention and protection tools to monitor for fraud or any other activity that could potentially jeopardize your merchant account.
While many processors claim to specialize in high-risk merchant services, some of those companies are actually very selective in their approval process, will automatically reject applicants that are on the MATCH list, or deny businesses that operate in certain industries. We prioritized processors that work to get merchants placed regardless of history or business type.
MATCH (Member Alert to Control High-Risk Merchants) list: A list of businesses with one or more merchant accounts previously closed by their acquiring banks. This database is created and managed by Mastercard and typically used by acquiring banks to screen merchant account applicants. Previously, this was known as the TMF (terminated merchant file) list.
Finally, we considered standard payment features like what types of payments each processor supports, deposit times, customer support hours, and user reviews.
Based on my evaluation, PaymentCloud emerged as the best overall high-risk merchant account for small businesses. PaymentCloud offers dedicated customer support, competitive pricing, fast-approvals, and next-day funding, which is rare for high-risk accounts. Plus, the company offers plenty of hardware and solutions for online, storefront, and mobile sellers.
Click through the tabs below for our specific evaluation criteria:
30% of Overall Score
I awarded points to processors that have average contract lengths below the three-year industry standard, have minimal or negotiable rolling reserve policies, and do not charge cancellation or early termination fees and any application or setup fees.
20% of Overall Score
Processors earned points for offering point of sale payment options, ecommerce or shopping cart integrations, and mobile payment solutions. Though nearly every processor provides payment gateway solutions, we awarded bonus points for those that charge minimal fees or give it for free.
30% of Overall Score
I prioritized 24/7 customer support and processors that offer dedicated account managers, include free chargeback monitoring and protection tools, and provide fast deposits. I also considered what industries and business types each processor works with, awarding points to those that are the most flexible.
20% of Overall Score
Processors earned points for positive user reviews and overall transparent pricing practices. I also considered the company’s overall reputation, reliability, and my personal experience interacting with its representatives.
PaymentCloud
PROS
- Comparatively low rates and fees
- Excellent dedicated customer support
- Fast application and setup
- Positive user reviews (rare for processing companies)
CONS
- No publicly disclosed pricing
- Does not support ingestible CBD products (does support topical CBD)
| RATING CRITERIA | Pricing & Contract | 4.13 | OUT OF | 5 |
| Payment Types | 5.00 | OUT OF | 5 | |
| High-risk Features | 4.25 | OUT OF | 5 | |
| Expert Score | 5.00 | OUT OF | 5 |
PaymentCloud is a high-risk processor that specializes in getting “hard-to-place” businesses approved for merchant accounts. It has a very hands-on approach, helping businesses through the application process and using multiple backend processors to find the lowest rates. Once you are onboarded, PaymentCloud continues to offer dedicated support.
Fantastic service, along with competitive pricing, has earned PaymentCloud a 4.51 out of 5 in our evaluation. It has a great industry reputation as well, and many low-risk processors—including Dharma Merchant Services and Stripe—actually refer their high-risk applicants over to PaymentCloud. The lack of 24/7 support, as well as certain businesses being subject to two-year contracts and rolling reserves, prevented PaymentCloud from getting a perfect score.
PaymentCloud Pricing
Like most high-risk payment processors, PaymentCloud does not have any publicly disclosed pricing. This is common because pricing usually varies based on your business and its associated risks.
However, PaymentCloud offers:
- Competitive interchange-plus pricing to qualifying businesses
- No application fees, setup fees, or annual fees
- Monthly fees, minimums, and reserves determined case-by-case
- Next-day funding
PaymentCloud Features
- Payment types: All major credit cards, debit cards, and automated clearing house (ACH) payments
- Online payment methods: Payment gateways, virtual terminal, and online shopping cart integrations
- In-person payments: Credit card terminals, POS systems, and mobile payments
- Chargeback prevention: Partnership with Chargeback Gurus to get instant dispute alerts, dispute tracking, a dispute cause analyzer, and prevention analysis
- Fraud prevention: Industry-standard Address Verification System (AVS) technology, tokenization, 3D Secure technology to validate cardholders at the point of purchase, and temporary payment halts to pause suspicious transactions until they are verified
PaymentCloud Compatible Industries
PaymentCloud has one of the most extensive lists of approved industries out of all the high-risk merchant service providers on our list. It works with tobacco, vape, topical CBD, hemp, and other products, as well as electronics, firearms, and nutraceuticals.
For high-risk services, it works with debt consolidators, diet and nutrition coaches, educational and online seminar providers, moving services, software and e-book providers, tech support, and more.
PaymentCloud boasts a 98% approval rating with its banks and offers free quote comparisons. Visit PaymentCloud for a free quote today.
Durango
PROS
- Specializes in hard-to-place businesses
- Dedicated customer support
- Fast onboarding with high approval rates
- Free fraud reduction tools and consultation
CONS
- No publicly disclosed pricing
- Limited Mountain Time support hours
- Does not support age-restricted products or companies offering remote computer support
| RATING CRITERIA | Pricing & Contract | 4.13 | OUT OF | 5 |
| Payment Types | 4.38 | OUT OF | 5 | |
| High-risk Features | 4.50 | OUT OF | 5 | |
| Expert Score | 5.00 | OUT OF | 5 |
Durango is one of the oldest merchant service providers specializing in high-risk accounts and has a long-standing reputation for offering reliable and affordable processing for hard-to-place merchants. It is also one of the more lenient high-risk merchant account providers, especially when it comes to helping small businesses with bad credit secure payment processing services.
In our evaluation, Durango earned a 4.46 out of 5. It earned high marks for its proprietary Durango Pay payment gateway and Durango Cart shopping cart technology, making it a great option for online businesses. It also works with companies on the MATCH list, as well as with offshore and international businesses. Limited Mountain Time support hours prevented Durango from earning a perfect score. The company also uses rolling reserves on high-risk startups and will require up to three-year contracts for some high-risk businesses.
Durango Pricing
Durango does not publicly disclose pricing on its website. Like most high-risk accounts, the rates, fees, and contract terms will depend on your business and financials.
However, generally speaking, Durango can offer:
- Competitive interchange-plus pricing for select businesses
- No application or startup fee
- No early termination fee*
- Month-to-month agreements for qualifying businesses (contract lengths up to three years possible for higher-risk companies)
- Minimal monthly fees (typically ranging from $30 to $50)
- Daily deposits for US accounts
*Early termination fees may apply to some businesses.
Durango Features
- Payment types: All major credit and debit cards, ACH, digital check payments, and cryptocurrency
- Payment methods: Point-of-sale payments, mobile payments through the iProcess app, online payments though Durango Cart, or integrate with ecommerce or web builder platforms with Durango Pay payment gateway
- Fraud protection: All accounts come with anti-fraud services, including Verified by Visa, Mastercard SecureCode, Fraud Scrubbing, and EMV 3d Secure 2.0
Durango Compatible and Prohibited Industries
All of the merchant account providers on our list accept a wide range of companies—and Durango is no exception. The company works with membership businesses, horoscopes and fortune-telling, mail or telephone order businesses, multilevel marketing, online auctions, telemarketing or telecommunications, timeshare advertising, high-ticket businesses, pawnshops, and more.
Unlike most of the other merchant account providers in our guide, Durango does not explicitly list all of the businesses it works with. However, it does mention a few businesses that it won’t, including age verification businesses, synthetic cannabinoids, remote PC support, and replica or counterfeit products. Visit Durango for more information and to receive a free quote.
Host Merchant Services
PROS
- Interchange-plus pricing
- No setup or early termination fees
- Many direct POS and ecommerce integrations
CONS
- Expensive for smaller businesses
- Limited customer support hours
- Limited chargeback protection tools
| RATING CRITERIA | Pricing & Contract | 3.06 | OUT OF | 5 |
| Payment Types | 4.38 | OUT OF | 5 | |
| High-Risk Features | 3.25 | OUT OF | 5 | |
| Expert Score | 4.38 | OUT OF | 5 |
Host Merchant Services is a traditional merchant account provider that also offers high-risk credit card processing and competitive interchange-plus pricing to businesses that qualify. Host Merchant Services advertises that it can help many businesses get merchant accounts that other processors would not work with. Specifically, its website says it can help businesses “selling anything that ‘borders’ on illegal”—in addition to adult businesses.
In our evaluation, Host Merchant Services earned a 3.64 out of 5. Rolling reserve requirements, a somewhat complicated pricing structure, and limited customer support prevented the company from earning a higher score.
Host Merchant Services Pricing
Host Merchant Services offers competitive interchange-plus pricing. Most high-risk merchant service providers’ default offer is tiered pricing. However, Host Merchant Services exclusively offers interchange-plus. Like the other solutions on our list, specific pricing details are not disclosed and may vary for each business, though generally, Host Merchant Services offers:
- No early termination fees for qualifying businesses
- No application or setup fees
- $24 annual fee
- $14.99 monthly account fee
Host Merchant Services Features
- Payment types: All major credit and debit cards, ACH payments, recurring billing, gift cards, and loyalty programs
- Payment methods: POS solutions include Bonsai and Clover; mobile payments through Vital and SwipeSimple apps; virtual terminal and payment gateway available through Transaction Express and Authorize.Net; and integrates with Shopify, BigCommerce, WooCommerce, and more for online payments
Most of the high-risk merchant service providers on our list partner with many banks and back-end processors to provide credit card processing services, but Host Merchant Services operates a little differently. It is a registered independent sales organization (ISO) of Wells Fargo Bank and uses a partnership with Electronic Merchant Systems (EMS) to place high-risk accounts.
Having one primary processor means that it can provide more specific pricing information. However, working with a limited number of back-end processors also means Host Merchant Services may be less likely to approve your account.
Host Merchant Services Compatible Industries
Host Merchant Services provides high-risk accounts for debt collection businesses, adult toy businesses and websites, coaching and consulting businesses, travel businesses, gambling and casinos, firearm sellers, search engine optimization (SEO) services, and more. It also works with e-cigarette and e-liquid sellers.
Visit Host Merchant Services for more information and to receive a free quote.
SMB Global
PROS
- Supports wide range of industries
- Excellent chargeback support
- Supports offshore accounts
- 175+ online shopping cart integrations
CONS
- Not ideal for mobile or storefront businesses
- Does not work with CBD vendors
- No publicly disclosed pricing
| RATING CRITERIA | Pricing & Contract | 2.88 | OUT OF | 5 |
| Payment Types | 3.13 | OUT OF | 5 | |
| High-Risk Features | 4.00 | OUT OF | 5 | |
| Expert Score | 4.38 | OUT OF | 5 |
SMB Global is a merchant service provider partner of Payline Data, a popular and reputable low-risk processor. SMB Global exclusively deals with high-risk and international businesses. It has chargeback prevention features and two popular payment gateway options—and each integrates with more than 175 online shopping carts.
In our evaluation, SMB Global earned a 3.56 out of 5. This company was particularly hard to evaluate because it partners with more than 20 other banks and back-end processors. In theory, this means businesses should get competitive rates and ideal contract terms. However, it also means pricing structures and fees vary significantly between businesses.
SMB Global Pricing
Like most high-risk merchant service providers, SMB Global does not disclose specific pricing information. The rates you receive, contract terms, and any other fees will also depend on your business. A number of factors—such as how long you have been in business, your processing history, proven cash flow or business model, and type of high-risk business—can all impact your rates and contract terms.
SMB Global Features
- Payment types: All major credit and debit cards, ACH and echeck processing
- Payment methods: POS terminals, including Verifone. Online and mobile payments available through Authorize.Net and NMI payment gateways
SMB Global has a short application process. Like most other high-risk merchant accounts, SMB Global sends your application out to its many processing partners to find the best rates and contract terms.
SMB Global Chargeback Prevention
One of the unique features of SMB is the chargeback prevention platform. Chargebacks are a hassle for any business but are significantly more common for high-risk businesses. Having too many chargebacks can also impact your processing rates and merchant account approval odds. SMB has an analytics platform to display your chargeback counts and ratios in real time and forecast your month-end results in advance.
The platform also has a feature that responds to chargebacks automatically so that they can be fought quickly and accurately. If you are using a customer relationship management (CRM) or POS system, SMB’s chargeback platform can sync with that system to tie the chargeback with the original purchase.
SMB Global Compatible Industries
Like PaymentCloud, SMB Global has a long list of products, industries, and services that it works with. It is worth noting that SMB works with many types of unconventional product sales, including auto parts, weight loss programs, electronics, firearms, supplements, and collectibles.
SMB also works with a variety of online services such as gambling, fantasy sports, furniture, and travel sites. Although SMB works with electronic cigarettes, vape, and tobacco products, there is no specific mention of CBD or hemp products.
Founded in 2016, SMB Global is a fairly new payment services provider. However, its sibling company, Payline Data, is a well-established processor with very positive user reviews. If you’re ready to get started, visit SMB Global.
Soar Payments
PROS
- Fast approvals
- QuickBooks and other software integrations
- No application fees
CONS
- Long initial contract term
- Steep early termination fees
- Does not work with CBD vendors
- Only works with US businesses
| RATING CRITERIA | Pricing & Contract | 3.00 | OUT OF | 5 |
| Payment Types | 3.75 | OUT OF | 5 | |
| High-risk Features | 2.75 | OUT OF | 5 | |
| Expert Score | 5.00 | OUT OF | 5 |
Soar Payments is a high-risk merchant service provider that specializes in working with businesses that have trouble getting approved for a merchant account. Soar works with a variety of industries and business types and offers the most direct integrations with accounting, CRM, and ecommerce platforms out of all the solutions on our list.
One of Soar Payment’s stand-out features is that it offers instant online quotes. In our evaluation, Soar earned a 3.48 out of 5. Two-year contracts as standard practice, incompatibility with merchants on the MATCH list, and slower 48–72 hour deposit times prevented Soar from earning a higher score.
Soar Payments Pricing
Like all of the other solutions on our list, Soar does not disclose pricing. However, it offers transaction fees as low as 2.49% for high-risk merchants. Specific rates will vary for each business, but Soar typically offers:
- Tiered pricing (we typically recommend small businesses avoid this because fees can be unpredictable)
- No application or setup fees
- Monthly fees around $15 for accounts needing payment gateways
- Initial two-year contracts
- Early termination fees up to $495
Soar Payments Features
- Payment types: All major credit and debit cards, ACH and digital checks
- Payment methods: POS payments, plus mobile and online payments through Authorize.Net, NMI gateway, and USAePay
- Chargeback protection: Partnership with Chargeback.com to include alert emails, representation to fight chargebacks, fraud detection, and more
Soar Payments Compatible and Prohibited Industries
Soar Payments does work with over 30 high-risk business types, including bad credit, cannabis support, CBD products, credit repair and monitoring, fantasy sports, firearms, MLM companies, pawnbrokers, nutraceuticals, survivalist businesses, and travel.
However, Soar Payments does not work with any merchant on the MATCH list, adult businesses, bitcoin, debt consolidation or relief, tech support, and poor credit businesses.
Overall, Soar offers reputable payment processing with fast estimates and approvals, plus no application fees. Visit Soar to get a quote today.
eMerchant Broker
PROS
- Specializes in CBD (including edibles and vape)
- Chargeback prevention system
CONS
- Pricey (even for a high-risk account)
- No publicly disclosed pricing
- Limited in-person processing tools
| RATING CRITERIA | Pricing & Contract | 2.44 | OUT OF | 5 |
| Payment Types | 2.19 | OUT OF | 5 | |
| High-Risk Features | 2.75 | OUT OF | 5 | |
| Expert Score | 3.44 | OUT OF | 5 |
eMerchant Broker (EMB) is a high-risk credit card processing company that offers high approval odds. EMB is also one of the few credit card processing companies that actively advertise working with CBD vendors, hemp products, and medical marijuana dispensaries. However, it does not offer the lowest pricing, even among other high-risk merchant accounts.
In our evaluation, EMB earned just a 2.68 out of 5—so it’s not our first choice. However, if you sell CBD oil, vapes, extract, or edibles and are having trouble getting approved for a merchant account, it can be a good option.
Heftier fees, lack of dedicated account managers, and lack of in-person payment solutions prevented EMB from scoring higher. I felt it was important to include eMB in this evaluation, as the company is often mentioned as a workaround solution for selling CBD products on ecommerce platforms like Shopify.
eMerchantBroker Pricing
Like the other solutions on our list, EMB does not disclose pricing information. Specific processing fees and contract terms will be determined on a case-by-case basis. It works with a variety of banks and back-end processors to get the best approval odds and processing rates for each business.
However, EMB does have lengthier contracts and hefty early cancellation fees. The company also uses a tiered payment processing pricing model, which is typically more expensive and unpredictable than the interchange-plus models available through PaymentCloud and Durango.
eMerchantBroker Features
- Payment types: All major credit and debit cards and checks
- Online payment methods: Accepts online payments through a proprietary EMB payment gateway, Authorize.Net, or integrations with Square, Wix, BigCommerce, and Shopify
- Chargeback prevention: Partnership with Verifi and Ethoca to minimize and notify merchants of chargebacks
eMerchantBroker CBD Merchant Accounts
CBD retailers have a notoriously hard time getting approved for a merchant account due to varying and ambiguous laws around CBD. However, EMB says that “we are willing to take the risk that banks won’t” when it comes to CBD accounts. It works with businesses selling CBD supplements and vitamins, beauty products, CBD oil, pet products, hemp oil, vaping oil and pens, CBD edibles, creams and topical treatments, pain-relief sprays, extracts, and more.
To apply for a CBD merchant account with EMB, you will need a valid, government-issued ID, a voided check, three months of the most recent bank statements, three months of the most recent processing statements (if applicable), and your social security or EIN number. Additionally, you must have a secure and fully-functional website and a history of chargebacks under 2%. There are no approval guarantees.
eMerchantBroker Approved and Prohibited Industries
In addition to the industries listed above, EMB works with electronic cigarettes, adult, tech support, credit repair, nutraceutical, collection, weight loss, and electronic businesses. According to its website, it has a 95% account approval rating, which is very high, especially for high-risk merchant services. Visit eMerchantBroker to apply.
Bottom Line
Navigating the process of choosing a credit card processor as a high-risk business is tricky because there are few options for high-risk merchant services. Choosing a provider that is easy to work with and that you can trust to charge fair rates are paramount.
PaymentCloud is a reliable credit card processor that specializes in high-risk merchant accounts and works with many back-end processors to service a wide variety of online, ecommerce, and retail businesses. It also offers fast approvals, competitive pricing, and next-day funding. Visit PaymentCloud for a free quote.
