Merchant Account for High-Risk Business – Full Guide for 2025

merchant account high risk Table of Contents

Introduction

In today’s digital economy, merchant account for high risk business ,accepting online payments is essential for business growth. But for some industries labeled as “merchant account for high risk business,” opening a standard merchant account is not so simple. High-risk businesses often face rejection from traditional banks and payment processors due to their increased chances of chargebacks, regulatory scrutiny, or financial volatility.

If you run a business in sectors like CBD, adult content, travel, forex trading, supplements, online gaming, or crypto services, you’ll likely need a high-risk merchant account. In this guide, we’ll explore what it is, why it’s essential, how to get one, and which providers are best in 2025.

What Is a High-Risk Merchant Account?

A high-risk merchant account is a specialised type of payment processing account created for businesses that operate in industries considered riskier by banks and processors. These accounts enable merchants to accept debit and credit card payments online or in-store while managing fraud, chargebacks, and regulatory issues more proactively.

Why Is a Business Considered High-Risk?

A business may be categorised as “high-risk” due to:

High chargeback ratio (above 1%)
Industry reputation (e.g., adult, gaming, forex)
Legal or regulatory complications (e.g., CBD or kratom)
Operating internationally or in high-fraud countries
Poor personal or business credit history
Subscription or recurring billing model

Examples of high-risk industries include:

CBD and hemp products
Adult entertainment and dating
Travel agencies and airlines
Forex, cryptocurrency exchanges
E-cigarettes and vaping
Tech support and remote services
Gambling and fantasy sports
Nutraceuticals and supplements

Benefits of a High-Risk Merchant Account

Despite the challenges, getting a high-risk merchant account has major advantages:

1. Accept Global Payments
Most high-risk merchant providers support multi-currency transactions and international card payments, allowing your business to expand worldwide.

2. Chargeback Protection
High-risk providers typically offer fraud monitoring tools, chargeback alerts, and dispute management systems to reduce financial loss.

3. Higher Approval Rate
Traditional processors may reject your application, but high-risk processors understand your business model and are more likely to approve you.

4. Scalable for Growth
From recurring billing to large transaction volumes, these accounts are built to scale with your high-risk business.

5. Dedicated Account Management
Many high-risk providers assign a dedicated manager to help you with approvals, compliance, and technical support.

How to Get a High-Risk Merchant Account (Step-by-Step)

Step 1: Find a High-Risk Merchant Provider
Look for providers experienced with your industry. Popular names include Durango Merchant Services, PayKings, Soar Payments, Easy Pay Direct, and Instabill.

Step 2: Gather Required Documents
Typical documents include:

Valid government-issued ID (passport or driver’s license)
Business license
Bank statements (last 3–6 months)
Processing statements (if switching)
Business EIN or tax ID
Website URL with privacy policy and terms

Step 3: Submit the Application
Most providers offer an online application form. Be honest about your industry, average transaction size, and monthly volume.

Step 4: Underwriting and Approval
The provider will evaluate your application, check legal compliance, and perform a risk assessment. Approval time can range from 24 hours to 7 days.

Step 5: Integration and Go Live
After approval, you’ll receive payment gateway credentials. You can then integrate the payment processor into your website or POS system and start accepting payments.

Best High-Risk Merchant Account Providers (2025)

1. Durango Merchant Services

Known for serving adult, CBD, and gaming industries
Accepts domestic and offshore businesses
Offers high-risk gateway and fraud protection tools
Great for recurring billing and multi-currency support

2. PayKings

Works with over 20+ banks
Expertise in e-cigarettes, supplements, kratom
Supports chargeback prevention and risk management
Fast approval and responsive support

3. Soar Payments

Best for travel, online coaching, and marketing services
Offers ACH, eCheck, and card payments
Fraud scoring and anti-fraud tools included
Transparent pricing

4. Easy Pay Direct

Supports enterprise-level high-risk businesses
EPD Gateway handles high-volume transactions
Ideal for digital products and coaching businesses
USA-based support and legal advice

5. Instabill

Offers offshore merchant accounts
Accepts high-risk e-commerce models
Low rolling reserves
Accepts Bitcoin and altcoins in select countries

Features to Look for in a High-Risk Payment Processor

Rolling Reserve Options
Most high-risk providers hold 5%–10% of revenue temporarily to cover chargebacks.
High Monthly Volume Limit
Your provider should scale with your business volume (important for travel and subscription models).
Multi-Currency & International Payments
If you target customers globally, multi-currency support is a must.
PCI-DSS Compliance
Your provider should help you remain PCI-compliant to avoid legal risks.
Real-Time Analytics Dashboard
To monitor transaction history, chargebacks, refunds, and conversions.
Fraud Protection & Chargeback Alerts
Tools like Ethoca or Verifi help detect fraud early.

Pricing and Fees

High-risk merchant account fees vary but are generally higher than standard accounts. Typical costs include:

Setup Fee: $0 – $500 (many offer free setup now)
Transaction Fee: 3% – 6% per transaction
Monthly Fee: $20 – $50
Rolling Reserve: 5% – 10%
Chargeback Fee: $15 – $25 per chargeback

Always compare rates from multiple providers and read the contract carefully.

Common Challenges and How to Overcome Them

1. Rolling Reserves:
Negotiate a lower reserve or shorter hold period once you build trust with the processor.

2. Declined Applications:
Fix issues like poor credit history, unclear business model, or lack of documentation.

3. Chargebacks:
Use anti-fraud tools, verify customer identity, and clearly display refund policies.

4. Compliance Issues:
Ensure your website includes terms of service, refund policy, and a visible support contact.

Legal Compliance for High-Risk Businesses

If your industry has regulatory constraints (e.g., CBD, gambling, adult), ensure that:

Your website content is age-appropriate and legally compliant
You hold necessary licenses or permits
Your product descriptions are FDA- or FTC-compliant
You do not mislead customers in pricing or delivery

Non-compliance can result in account suspension or legal action.

Conclusion

Getting a merchant account for high-risk business in 2025 is easier than ever if you work with the right provider. Whether you’re in a regulated space like CBD, adult content, or crypto, a high-risk merchant account will help you accept payments securely, grow globally, and stay compliant.

Choose a processor that understands your niche, offers chargeback protection, transparent pricing, and reliable support. Don’t let the “high-risk” label hold your business back—embrace the right payment solution and take your business to the next level.

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Merchant Account for High-Risk Business: Secure Payments with Confidence

A merchant account for high-risk businesses enables secure credit card processing for industries like CBD, adult, forex, supplements, and gambling. Traditional banks often reject these sectors due to chargebacks or regulatory concerns. High-risk merchant providers offer tailored solutions with fraud protection, multi-currency support, and global payment gateways. In 2025, using a trusted high-risk processor ensures better approval rates and faster settlements. Providers like Durango, PayKings, and Soar Payments specialize in these services. If you’re in a high-risk industry, choosing the right merchant account is critical for seamless payment processing and business growth.

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