High-risk merchants face unique challenges in handling payments because traditional banks often avoid supporting their businesses. But don’t worry! There are a few good high-risk merchant services providers who can help high-risk merchants.
In this article, we’ll review different high-risk merchant service providers, what they offer, their pros and cons, and the technology they use.
What is High-Risk Credit Card Processing?
High-risk credit card processing refers to the specialized payment processing services provided to businesses deemed riskier by financial institutions due to various factors. These factors can include the industry they operate in, their credit history, chargeback rates, or legal and regulatory considerations. High-risk merchants may include online businesses, adult entertainment sites, travel agencies, nutraceutical companies, and more.
For these merchants, obtaining a standard payment processing solution can be challenging, as many traditional banks and payment processors are reluctant to take on the perceived higher risks associated with such businesses. As a result, high-risk credit card processors step in to cater to these specific needs.
High-risk credit card processors offer tailored solutions, often at a higher cost, to mitigate potential risks for both the merchants and the payment processors themselves. They employ advanced fraud detection systems, chargeback management tools, and strict compliance measures to protect against financial losses and ensure smooth transactions. Despite the elevated risk, high-risk credit card processing enables these businesses to access essential payment services and thrive in their respective industries.
Top 5 And Best High-Risk Merchant Services Providers
In the world of payment processing, some businesses are considered riskier than others. These high-risk merchants often struggle to find suitable payment solutions. But don’t worry; we’ve compiled a list of the top 5 best high-risk merchant services providers. These companies have proven their expertise in this area and offer specialized solutions and excellent customer support. They use advanced technology to protect against fraud and ensure smooth payment processing. Join us as we explore the top players who help high-risk businesses succeed and grow despite the challenges they face.
1. PaymentCloud: A Hassle-Free High-Risk Merchant Services Provider
User-Friendly Payment Options
PaymentCloud stands out as an excellent choice for high-risk merchant account solutions, offering a user-friendly experience and top-notch customer service. One of the key strengths of PaymentCloud is its versatility in accepting multiple payment methods. Whether it’s credit cards, ACH, eCheck, or even cryptocurrency payments, they have you covered. This wide range of options allows businesses to cater to their customers’ preferences seamlessly.
Free EMV Terminals for Smooth Transactions
Signing up for PaymentCloud’s zero-cost credit card processing account comes with a sweet deal – complimentary retail or mobile EMV terminal. This added perk is a boon for merchants requiring hardware to process payments efficiently, be it in a brick-and-mortar store or on the go. This way, businesses can offer smooth and secure transactions, enhancing the overall customer experience.
A Broad Spectrum of Merchant Support
PaymentCloud proves itself to be a well-rounded solution, serving not only high-risk but also low- and medium-risk merchants. The company has gained praise for its highly-rated customer support, ensuring that businesses receive the assistance they need whenever an issue arises. Additionally, PaymentCloud boasts support for popular software integrations, streamlining payment processes and enhancing operational efficiency.
2. Host Merchant Services: An All-Inclusive High-Risk Payment Solution
Diverse Payment Methods for Enhanced Convenience
Host Merchant Services (HMS) emerges as an inclusive high-risk merchant services provider, offering various payment methods to cater to diverse customer preferences. From traditional credit cards to digital wallets like Apple Pay, Android Pay, and PayPal, HMS ensures businesses can seamlessly accept payments both online and in-person through a mobile point-of-sale (POS) system. This versatility empowers high-risk merchants to accommodate a broader customer base and enhance their overall shopping experience.
Ideal for Businesses with Substantial Sales Volume
HMS collaborates with Electronic Merchant Systems to provide specialized services for high-risk merchants. This partnership makes it an excellent choice for businesses processing significant monthly sales volumes, as the service is best suited for those handling $10,000 or more in sales each month. By catering to such businesses, HMS can offer tailored solutions and support that align with their specific needs.
Why Choose Host Merchant Services
HMS has garnered praise for its extensive coverage across various industries, showcasing its ability to support businesses from different sectors. Additionally, the provider’s commitment to great customer service sets it apart, ensuring merchants receive the assistance they require promptly and efficiently. Another major advantage is the absence of a monthly account fee, allowing merchants to save on unnecessary costs while availing themselves of no-cost credit card processing.
3. Soar Payments: Empowering High-Risk Merchants with Versatile Payment Solutions
Diverse Payment Methods for High-Risk Industries
Soar Payments takes pride in its role as a high-risk merchant services provider, catering to merchants in diverse industries often overlooked by other service providers. The company supports credit card, ACH, and eCheck payments, ensuring that businesses across numerous sectors, including antiques and collectibles, bus lines, country clubs, sports betting, SaaS (software-as-a-service) companies, fantasy sports, pet products, and nonprofits, can access reliable payment processing solutions.
Seamless and Efficient Application Process
Soar Payments stands out for its straightforward and streamlined application process, allowing merchants to receive an instant price quote without the need for offline paperwork. The all-online application process offers convenience and efficiency, enabling merchants to quickly assess the pricing and proceed with the necessary formalities via DocuSign.
Benefits of Soar Payments
The instant price quote and all-online application process are among the significant advantages of choosing Soar Payments. Additionally, the company’s strong and U.S.-based customer support system ensures merchants receive the assistance they need promptly and effectively. Another appealing aspect is the industry-minimum pricing, providing competitive transaction fees for mid-risk merchants, starting at around 2.49%.
4. SMB Global: Empowering High-Risk Merchants with Global Payment Solutions
Versatile Payment Methods for High-Risk Businesses Worldwide
SMB Global stands as a dedicated high-risk merchant services provider, offering comprehensive payment processing solutions to businesses operating in challenging industries. From credit cards to ACH and eChecks, SMB Global accommodates various payment methods, allowing high-risk merchants worldwide to access reliable and secure transaction processing services.
Specialization in High-Risk and Travel Industries
One of SMB Global’s notable strengths lies in its specialization in serving travel and other high-risk merchants. By focusing on these industries, SMB Global has developed a deep understanding of their unique needs and challenges, providing tailored payment processing solutions that cater to their specific requirements.
Multiple Payment Gateway Options
SMB Global offers flexibility in payment gateway solutions, providing merchants with the choice of working with either Network Merchants Inc. or Authorize.net. This option allows businesses to select the most suitable gateway based on their individual needs, enhancing overall efficiency and customer experience.
Why Consider SMB Global
SMB Global distinguishes itself by offering the capability to accept international payments at fair rates. This feature is a significant advantage for high-risk merchants operating on a global scale, as it facilitates seamless cross-border transactions. Additionally, SMB Global’s willingness to work with businesses with bad credit opens doors for enterprises that might face difficulties obtaining payment processing services elsewhere. The provider also boasts popular software integrations, further streamlining payment processes.
5. Durango Merchant Services: A Premier Choice for High-Risk Merchants
Comprehensive Payment Methods for High-Risk Industries
Durango Merchant Services stands out as a top-tier provider specializing in serving high-risk merchants. Its commitment to catering specifically to high-risk businesses allows it to offer an impressive array of payment methods that meet the diverse needs of these industries. From ACH and eCheck to cryptocurrency payments, Durango enables merchants to accept payments through various channels, providing flexibility and convenience to both merchants and customers alike.
Unparalleled Support for Highest-Risk Merchants
Durango’s sincere dedication to high-risk merchants sets it apart as one of the best service providers for businesses operating in the most challenging industries. The company’s expertise spans across various sectors, including annual memberships, bail bonds, online electronics, gaming, multilevel marketing, debt services, fortune telling, firearms, businesses with low credit scores, and multicurrency merchant accounts. By focusing on these high-risk sectors, Durango has cultivated specialized knowledge and tailored solutions that empower businesses with limited options for merchant services or those who have faced rejections or account terminations in the past.
Benefits of Durango Merchant Services
Durango’s exceptional commitment to very high-risk businesses highlights its ability to understand and cater to the unique challenges these merchants face. The provider offers valuable fraud protection services and education to safeguard businesses against financial losses and potential risks. Additionally, Durango’s support for cryptocurrency payments showcases its forward-thinking approach, enabling businesses to embrace emerging technologies and stay ahead in the dynamic market landscape.
How to Choose the Right High-Risk Merchant Services Provider for Your Business
Choosing the right high-risk merchant services provider is vital for the success of your business in challenging industries. Consider the following key factors:
- Industry Focus: Look for a provider experienced in serving businesses similar to yours.
- Payment Methods: Ensure the provider supports the payment methods your customers prefer.
- Customer Support: Opt for a provider with reliable and responsive customer service.
- Fees: Compare transaction fees, early termination fees, and other costs to find the most suitable option.
- Fraud Protection: Seek a provider with robust fraud prevention measures.
- Integration: Check for compatibility with your existing software and systems.
By carefully evaluating these factors, you can find a high-risk merchant services provider that meets your specific needs and empowers your business to thrive.
In conclusion, selecting the right high-risk merchant services provider is crucial for businesses in challenging industries. The comparison of top providers highlights their unique strengths, from PaymentCloud’s user-friendliness to Durango Merchant Services’ specialization in the highest-risk sectors.
Consider factors like fees, industry focus, and customer support when making the best choice. By partnering with the ideal provider, businesses can navigate payment processing challenges effectively and maximize their potential for success.
Frequently Asked Questions (FAQs)
What is a high-risk merchant services provider?
A high-risk merchant services provider is a financial institution or company specializing in offering payment processing solutions to businesses deemed riskier by traditional banks. These businesses may operate in industries with higher chargeback rates, legal or regulatory challenges, or face greater fraud risk.
What industries are considered high-risk?
High-risk industries can include online gaming, adult entertainment, travel agencies, CBD products, nutraceuticals, firearms, debt collection, and more. However, the classification may vary depending on the provider’s criteria.
Why do high-risk merchants need specialized services?
Traditional banks and payment processors may be reluctant to serve high-risk merchants due to the potential for increased financial liabilities and regulatory complexities. Specialized high-risk merchant services providers offer tailored solutions and risk management tools to support these businesses.
What payment methods do high-risk merchant services providers support?
High-risk merchant services providers typically offer a wide range of payment methods, including credit cards, ACH, eCheck, and in some cases, cryptocurrency.
Are there any additional fees for high-risk merchants?
High-risk merchants may encounter higher transaction fees, setup fees, or rolling reserves as compared to low-risk businesses. It’s crucial to carefully review the provider’s fee structure and policies.