High-Risk Payment Processor- What Is It?

High-Risk Payment Processor- What Is It?

Written by Deepak Bhagat, In Technology, Published On
September 10, 2021

Finding the proper payment support for your business is always a difficult task. You need to account for many factors, and even then, there’s no guarantee that there will be no hiccups. This worry is especially prominent for those businesses that are “high-risk.” If you are a high-risk business or operate in a high-risk industry, you need high-risk payment processors who can process your payments. A high-risk payment processor is different from a low-risk payment processor in quite a few ways. It is imperative to understand what high-risk payment processors are to make the right decisions for your business. Let us look at the different factors that make payment processors high-risk. We will also look at how you can get approval for a merchant account from high-risk payment processors.

What is a High-Risk Payment Processor?

high risk payment process

A high-risk payment processor is a processor that deals with industries and merchants that are “high-risk.” Many relevant factors define who is a high-risk merchant and what classifies as a high-risk sector. If you know that you are a high-risk merchant or in a high-risk industry, low-risk payment processors will likely reject your application. Payment processors evaluate risk based on various factors such as the industry, the likelihood of fraud, and several other aspects associated with the business. A high-risk payment processor, as the name suggests, has a greater appetite for risk. Due to this risk appetite, high-risk payment processors can provide services to those merchants whose business is high-risk due to frequent returns, chargeback ratio, or payment processing history. A few examples of high-risk industries include adult entertainment, forex, pharmacy, gaming, gambling, bookings, telemarketing, and many others.

Who Needs a High-Risk Payment Processor?

If you are a high-risk merchant in a high-risk industry or high-risk due to other factors, you need a high-risk payment processor. For those merchants who are high-risk, they must work with high-risk payment processors exclusively. When dealing with a high-risk payment processor, you are in safer hands because they have the necessary experience. Many high-risk payment processors specialize in various fields such as fraud detection and management. If your business faces issues related to payment processing frequently, you need a team that can appropriately and efficiently address all your problems.

High-risk payment processors provide you the tools that you need to ensure that you face the least amount of resistance while conducting a business. In high-risk industries, merchants are more likely to come across fraudulent transactions and other suspicious activity. Moreover, the high-risk merchants often see transactions in more significant numbers. Therefore, it can be difficult for a low-risk payment processor to help a high-risk merchant due to their limited capabilities. When you partner up with a high-risk payment processor, you know that an AI system constantly scans through all your transactions to identify any suspicious activity. Knowing that a system oversees all your transactions and financial activities gives you a great sense of relief. Having access to a fraud-proof payment solution due to a machine learning processing system is a valuable asset in any high-risk business. Now that we understand the importance of high-risk payment processors let us see how a merchant can get approval.

How Can You Get Approval from a High-Risk Payment Processor?

Getting approval from a high-risk payment processor can be quite different from a regular payment provider. To begin with, a high-risk payment processor will inevitably be more careful about the clients they take on. A rigorous process that a high-risk merchant has to go through to secure a merchant account with the high-risk payment processor. As a high-risk merchant, you may have to produce additional documents to verify your claims. As a high-risk merchant, you should also prepare yourself for a long and arduous approval process. Throughout the entire process, ensure that you comply with all the requirements that your payment processor sets.

Further, you need to ensure that there are absolutely no faults on your end. If you have a shady history with payment processing, it will be best to disclose that upfront. High-risk payment processors can help you address any issues you deal with, so you should always be honest about your history and intentions.

How Can You Identify a Reliable High-Risk Payment Processor?

It is abundantly clear that high-risk merchants need to approach high-risk payment processors for a smooth experience while conducting their business. Since it is a critical decision, picking a reliable high-risk payment processor can be quite challenging. It would be best to keep a few factors in mind while identifying the perfect high-risk payment processor for you. The first relevant factor you need to consider is the security that the high-risk payment processor offers. You need to ensure that your high-risk payment processor has ample resources to address chargebacks, fraudulent transactions, and other suspicious activities. You can research to identify what tools your high-risk payment processor offers and how they can help you.

The next factor that you need to consider is the expertise that the high-risk payment processor possesses. Generally, it is a good idea to go for a high-risk payment processor that deals with other merchants in your industry. Going for a high-risk payment processor familiar with your industry can be a great advantage because they will have the necessary expertise to deal with most issues.

When it comes to high-risk payment processors, you need to be careful about the pricing plans. Many high-risk payment processors often trap merchants by revealing hidden transaction costs and other service costs when it is already too late. You need to ensure that the payment processor you select is transparent about its pricing model and that it matches the needs of your business.

As a high-risk merchant, you will come across many issues that you need to resolve efficiently. Therefore, your high-risk payment processor must offer excellent support that you can rely on for any help that you may need in the future. Lastly, you need to ensure that your high-risk payment processor utilizes the latest technology and is user-friendly. If your payment provider uses the latest technology and follows industry standards, you know you are in good hands.


If you are a high-risk merchant or operating in a high-risk industry, a high-risk payment processor is an ideal choice for you. Selecting a suitable payment processor can positively impact your business. Doing your due diligence can help you ensure that you choose a high-risk payment processor that aligns with your business needs. You can also read reviews online to get a sense of which high-risk payment processors are reliable.

Also Read -   Future Trends in Enterprise IT Infrastructure: Scalability and Flexibility
Related articles
Join the discussion!