High-risk merchant account providers offer merchant accounts and payment processing services to businesses that operate in high-risk industries. Businesses in industries that are age-restricted, like gambling and tobacco, or have high rates of fraud or chargebacks, such as dropshipping, nonprofits and web design, often struggle to find payment processing companies that are willing to work with them.
The best high-risk merchant account providers have competitive pricing and popular integrations and accept a variety of payment methods; some even sell point-of-sale (POS) solutions or easily integrate with POS systems.
250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
Objective and comprehensive payment processing ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including payment processing, accounting and payroll. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Here are our recommendations for high-risk merchant account providers.
Sponsored partner picks for
High approval rates
HighRiskPay.comBest High-Risk Merchant Account Providers
Best High-Risk Merchant Account Providers
Sort By
Monthly fee
$9.95
for Basic In-Person Package.
Learn more
on National Processing's website
Pros
- No termination fees, long-term contracts or PCI compliance fees.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
- Compatible with multiple POS system providers, including Clover.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Basic plans for processing in-person and online transactions are separate.
- Deposits take 2-3 business days for basic plans.
National Processing
Best for Dedicated account manager
Monthly fee
$9.95
for Basic In-Person Package.
Learn more
on National Processing's website
Pros
- No termination fees, long-term contracts or PCI compliance fees.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
- Compatible with multiple POS system providers, including Clover.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Basic plans for processing in-person and online transactions are separate.
- Deposits take 2-3 business days for basic plans.
Payment processing fees
2.4% + $0.10
to 3.5% + $0.25 on average.
Monthly fee
$0.00
to $50.
Learn more
on PaymentCloud's website
Pros
- Works with high-risk businesses.
- New merchants may qualify for a free terminal.
- 24/7 support.
Cons
- Website isn’t transparent about processing rates.
- May charge PCI compliance fees.
- Some plans require a contract and charge steep termination fees.
PaymentCloud
Best for Software integrations
Payment processing fees
2.4% + $0.10
to 3.5% + $0.25 on average.
Monthly fee
$0.00
to $50.
Learn more
on PaymentCloud's website
Pros
- Works with high-risk businesses.
- New merchants may qualify for a free terminal.
- 24/7 support.
Cons
- Website isn’t transparent about processing rates.
- May charge PCI compliance fees.
- Some plans require a contract and charge steep termination fees.
Pros
- No long-term contracts or cancellation fees.
- First month or two (depending on the business) is free.
- Works with high-risk merchants.
- No PCI compliance fees.
- 24/7 support.
- Compatible with multiple POS terminal providers, including Clover.
Cons
- Separate monthly fees for in-person and online processing.
- Must contact Payline for information on hardware costs.
Pros
- No long-term contracts or cancellation fees.
- First month or two (depending on the business) is free.
- Works with high-risk merchants.
- No PCI compliance fees.
- 24/7 support.
- Compatible with multiple POS terminal providers, including Clover.
Cons
- Separate monthly fees for in-person and online processing.
- Must contact Payline for information on hardware costs.
HighRiskPay.com
Best for High approval rates
Payment processing fees
2.95% + $0.25
May vary with credit or transaction type.
Monthly fee
$9.95
Pros
- Transparent pricing.
- Accepts in-person, online and recurring payments.
- No contract or setup fee.
Cons
- Monthly fee required.
- Limited integrations.
HighRiskPay.com
Best for High approval rates
Payment processing fees
2.95% + $0.25
May vary with credit or transaction type.
Monthly fee
$9.95
Pros
- Transparent pricing.
- Accepts in-person, online and recurring payments.
- No contract or setup fee.
Cons
- Monthly fee required.
- Limited integrations.
Inovio
Best for High-risk online payment processing
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Pros
- All-in-one processing and POS solution.
- Processes international payments.
Cons
- Lack of pricing transparency.
- No option for processing in-person payments.
- Limited integrations.
Inovio
Best for High-risk online payment processing
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Pros
- All-in-one processing and POS solution.
- Processes international payments.
Cons
- Lack of pricing transparency.
- No option for processing in-person payments.
- Limited integrations.
Soar Payments
Best for Variety of high-risk industries
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Pros
- Accepts in-person, online and recurring payments.
- Offers several popular integrations.
- No setup fees.
Cons
- Lack of pricing transparency.
- Restrictions on recurring billing approval.
Soar Payments
Best for Variety of high-risk industries
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Pros
- Accepts in-person, online and recurring payments.
- Offers several popular integrations.
- No setup fees.
Cons
- Lack of pricing transparency.
- Restrictions on recurring billing approval.
Payline: Best for free trial
Why we like it: Payline Data offers competitive pricing of interchange plus a low per-transaction rate. Depending on the types of credit cards you accept, such as Visa or American Express, its rates could save you money compared with competitors’ rates. Read our full Payline Data review.
- $10 for in-person sales.
- $20 for online sales.
Offers mobile card readers, countertop terminals and full POS systems. Cost varies by provider and is quote-based.
- Interchange plus 0.4% and 10 cents for in-person transactions.
- Interchange plus 0.75% and 20 cents for online transactions.
Software integrations: QuickBooks and major e-commerce platforms including Shopify, WooCommerce and BigCommerce.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party POS hardware from providers like Clover, Ingenico and ID Tech.
PaymentCloud: Best for software integrations
Why we like it: PaymentCloud stands out from the competition with a large set of software integrations, a free terminal for qualifying merchants and tools dedicated to preventing fraud and managing chargebacks (although chargebacks come with a $25 fee). PaymentCloud claims to have a 98% approval rate for high-risk merchants. Read our full PaymentCloud review.
$0 to $50.
Offers handheld POS terminals, mobile card readers, full POS systems and payment accessories. Cost varies depending on the third-party hardware provider.
Quote-based. You’ll have to call to get specific pricing information for your business, but average ranges are:
- 2.4% plus 10 cents for low-risk retail merchants.
- 2.8% plus 25 cents for medium-risk businesses, like e-commerce shops.
- 3.5% plus 25 cents for high-risk merchants.
Software integrations: Customer relationship management platforms including Zendesk and SalesForce, e-commerce platforms including Shopify and WooCommerce, online marketplaces including Etsy and eBay, and accounting software like QuickBooks and FreshBooks.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Third-party options available from companies like Clover.
National Processing: Best for dedicated account manager
Why we like it: National Processing offers in-person and online payment processing plans, as well as an ACH one for businesses that get paid mostly via e-check. And if your business processes at least $10,000 per month, the company promises $500 if it can't beat your current rates. Read our full National Processing review.
- $9.95 for Basic In-Person Package, Basic E-Commerce Package.
- $19 and up for Premium Package.
Offers handheld POS terminals and countertop registers from Clover, SwipeSimple and Pax.
- $99 and up for the SwipeSimple B250 mobile card reader.
- $230 and up for the Pax A80 countertop terminal.
- $345 and up for the Pax A920 handheld terminal.
- $515 and up for the SwipeSimple Aries8 POS system.
- $585 and up for the Clover Flex handheld terminal.
- $765 and up for the Clover Mini POS system.
- $835 and up for the Pax E700 POS system.
- $1,605 and up for the Clover Solo POS system.
- $1,735 and up for the Clover Duo POS system.
- Basic In-Person Package: 2.5% plus 10 cents per transaction.
- Basic E-Commerce Package: 2.9% plus 30 cents per transaction.
- Premium Package: 2.41% plus 10 cents.
Software integrations: QuickBooks, WooCommerce, BigCommerce, Ecwid, Zendesk and Shopify.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party systems, including Clover.
HighRiskPay.com: Best for high approval rates
Why we like it: HighRiskPay.com clearly outlines its rates for all types of businesses, including those with bad credit. It also shows the rate for high-risk businesses as well as those offering adult-themed products. Although that industry has a higher rate, it’s only 25 cents more per transaction and gets the same percentage charged as other high-risk businesses.
$9.95.
HighRiskPay.com does not sell its own hardware.
2.95% plus 25 cents for high-risk merchants, but may vary with credit or type of transaction.
Software integrations: E-commerce platforms including Shopify, Wix, Shift4Shop (formerly 3dcart) and Opencart.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: None.
Inovio: Best for high-risk online payment processing
Why we like it: Inovio stands out with its excellent online payment processing options. It offers secure checkout pages, customizable payment gateway APIs and the ability to manage multiple locations. And because the company will handle your gateway and processing along with the POS, you only have to contact one company for support.
Quote-based.
N/A; online-only.
Quote-based.
Software integrations: Includes Infusionsoft for marketing and sales, Nats for advertising and CartConnect.
Type of transactions accepted: Online and recurring payments.
POS: compatibility Inovio virtual POS solution available.
Soar Payments: Best for variety of high-risk industries
Why we like it: Compared with competitors, Soar Payments' website includes the most extensive list of industries served, with over 50 industries listed. For businesses that are nontraditional or are having trouble finding a processor that serves their industries, it's a strong option.
Quote-based.
Can provide to you or help you reprogram existing; pricing is quote-based.
Quote-based.
Software integrations: Accounting systems including QuickBooks and Zoho; e-commerce platforms including Shopify, BigCommerce and WooCommerce; and marketing systems including Click Funnels and Infusionsoft.
Type of transactions accepted: In-person, online and recurring payments.
POS compatibility: Integrates with third-party POS systems.
A high-risk merchant account provider sets up a dedicated merchant account that holds a high-risk business’s credit card funds until they’re transferred to the business’s bank account. In many cases, they also double as the business’s payment processor to facilitate electronic payments, like credit and debit cards. They may offer additional merchant services, like POS hardware and software, too.
Some high-risk merchant account providers work exclusively with high-risk businesses, while others also work with low- and medium-risk businesses.
Learn more about high-risk merchant accounts
Dig into why your high-risk business needs a merchant account on top of payment processing services, as well as tips on finding the right one for your business.
The “high-risk” category encompasses a wide variety of business types and industries, and some of them may come as a surprise. Perhaps more obvious high-risk businesses include those that deal in firearms and ammunition, cannabis and CBD, pawn shops and tobacco and vaping products. However, the high-risk label can also apply to subscription-service businesses, nonprofits, advertising agencies, software as a service (SaaS) companies and others.
A primary factor that contributes to being considered “high-risk” is whether the business model lends itself to higher rates of chargebacks. For example, subscription-service businesses where users are billed on a recurring basis are more likely to receive dispute charges when a user signs up for the service not realizing it will auto-renew and charge their card each month. Other factors can include transaction type (online and over-the-phone, card-not-present transactions are more susceptible to credit card fraud), international sales and high sales volumes.
Here are several factors to consider while searching for the best high-risk merchant account provider for your business.
- Payment processing costs: Per-transaction fees for high-risk businesses are typically more expensive than they are for low-risk ones. That being said, high-risk merchant account providers should still offer fair rates, which ideally fall under 4% for in-person transactions. If you go with an interchange-plus provider as opposed to a flat-rate option, don’t hesitate to try negotiating lower markups based on your specific industry and transaction history.
- Chargeback fees: What does the merchant account provider charge for each disputed transaction that results in a refund to a customer? Typically chargebacks cost $15 to $25 each, but some providers charge more or don’t charge for them at all.
- Accepted transaction types: Consider the types of transactions your business processes and whether the high-risk payment processor will accept those. Some may accept only online transactions (such as Inovio), whereas others will accept credit card payments both in person and online.
- Integrations: Most high-risk payment processors provide at least a few integrations with third-party applications and business software. It’s helpful to choose a solution that integrates directly with tax and accounting software, and if you sell online, you likely want a processor that integrates with popular e-commerce platforms and marketplaces.
Last updated on July 12, 2024
Methodology
NerdWallet’s ratings of payment processing providers reward companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.