High-risk payment processors provide merchant accounts and payment processing services to merchants that operate in high-risk industries. Typically, these include industries that are age-restricted, such as cigarettes and tobacco, or have high rates of fraud or chargebacks, such as dropshipping, nonprofits or web design.
Businesses that fall into these high-risk categories often struggle to find merchant account providers and payment processors that are willing to work with them. However, there are several good options for these businesses that can offer competitive pricing, popular integrations and a variety of payment methods; some even offer point-of-sale (POS) solutions or easy integrations with POS systems. Here’s a list of our recommendations for high-risk payment processors.
Our Nerdy picks for
Adult-themed businesses
HighRiskPay.comBest High-Risk Payment Processors
Calculate your monthly cost estimate
Input your business’s monthly transaction details and we’ll help you sort from the best valueProduct | Cost Estimate | Payment processing fees | Cost Estimate | Learn more | ||
|---|---|---|---|---|---|---|
Payline Learn more on Payline's secure website | Get an estimated monthly cost for your business. | 4.5/5 Best for Overall | In-person: 0.4% + $0.10 Online: 0.75% + $0.20 Plus interchange | $10 in person; $20 online. | Get an estimated monthly cost for your business. | Learn more on Payline's secure website |
PaymentCloud Learn more on PaymentCloud's secure website | 3.5/5 Best for Software integrations | 2.7% + $0.00 to 4.3% + $0.00. | $10 to $45. | Learn more on PaymentCloud's secure website | ||
National Processing Learn more on National Processing's secure website | 3.5/5 Best for Cash discount and ACH payments | 0.18% + $0.10 plus interchange; varies by business and transaction type. | $10 and up. | Learn more on National Processing's secure website | ||
HighRiskPay.com | Best for Adult-themed businesses | 2.95% + $0.25 May vary with credit or transaction type. | $10 $9.95 and up. | |||
Inovio | Best for Online payments | N/A Quote-based. | N/A Quote-based. | |||
Soar Payments | Best for Hard-to-place businesses | N/A Quote-based. | N/A Quote-based. |
Our pick for
Overall
Payline
Learn more
on Payline's secure website
Monthly fee
$10
in person; $20 online.
Payline is transparent with its competitive processing rates, which is rare among payment processors that work with high-risk businesses. The company even includes a calculator feature on its pricing page to help you estimate your total monthly cost for processing.
Pros
- Pricing transparency.
- Competitive transaction rates.
- Customer support by phone and email.
- No long-term contracts or cancellation fees.
- No PCI compliance fees.
- Integrates with many POS systems, shopping carts and QuickBooks.
Cons
- Separate monthly fees for in-person and online processing; monthly fees can add up if you process transactions both in person and online.
Our pick for
Software integrations
PaymentCloud
Learn more
on PaymentCloud's secure website
Payment processing fees
2.7% + $0.00
to 4.3% + $0.00.
Monthly fee
$10
to $45.
PaymentCloud is one of a limited number of payment processors that work with high-risk merchants. It offers a long list of popular software integrations and can accept in-person, online and recurring payments.
Pros
- Accepts in-person, online and recurring payments.
- Offers an extensive library of software integrations.
- Has a virtual terminal for card-not-present transactions.
Cons
- Lack of pricing transparency.
Our pick for
Cash discount and ACH payments
National Processing
Learn more
on National Processing's secure website
Payment processing fees
0.18% + $0.10
plus interchange; varies by business and transaction type.
Monthly fee
$10
and up.
National Processing is a payment processor that offers competitive rates, useful integrations and compatibility with several card readers. It also works with high-risk merchants.
Pros
- Works with high-risk merchants.
- Offers popular integrations.
- No minimum processing requirements.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Termination fees apply in some circumstances.
Our pick for
Adult-themed businesses
HighRiskPay.com
Payment processing fees
2.95% + $0.25
May vary with credit or transaction type.
Monthly fee
$10
$9.95 and up.
Unlike many high-risk payment processors, HighRiskPay.com discloses its monthly and payment processing fees clearly on its website. This provider even works with adult-themed merchants and those with bad credit, though processing fees increase in these categories.
Pros
- Transparent pricing.
- Accepts in-person, online and recurring payments.
- No contract or setup fee.
Cons
- Monthly fee required.
- Limited integrations.
Our pick for
Online payments
Inovio
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Inovio not only accepts high-risk merchants but also offers a virtual POS in addition to its payment processing solutions, making it an appealing all-in-one solution for high-risk merchants with online businesses that are looking for a single point of contact for their payment needs.
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.
Our pick for
Hard-to-place businesses
Soar Payments
Payment processing fees
N/A
Quote-based.
Monthly fee
N/A
Quote-based.
Soar Payments is unique among payment processors for its list of more than 50 industries it serves. From low- to high-risk and everything in between, Soar Payments is likely to have a solution for your business.
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.
Our picks for best high-risk payment processors
Payline Data: Best overall high-risk payment processor
Monthly fee:
- $10 for in-person sales.
- $20 for online sales.
Hardware: Third-party hardware sold through Payline; quote-based.
Payment processing fees:
- Interchange plus 0.4% and 10 cents for in-person transactions.
- Interchange plus 0.75% and 20 cents for online transactions.
- Pricing varies by card type for manually keyed transactions.
Type of transactions: In-person, online and recurring payments.
POS: Integrates with third-party POS systems.
Integrations: QuickBooks and major e-commerce platforms including Shopify, WooCommerce and BigCommerce.
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.
PaymentCloud: Best for software integrations
Monthly fee: $10 to $45.
Hardware: Quote-based.
Payment processing fees:
- 2% to 3.1% for low-risk transactions.
- 2.3% to 3.4% for mid-risk transactions.
- 2.7% to 4.3% for high-risk transactions.
Type of transactions: In-person, online and recurring payments.
POS: PaymentCloud POS solution available.
Integrations: Customer relationship management platforms including Zendesk and SalesForce, ecommerce platforms including Shopify and WooCommerce, and online marketplaces including Etsy and eBay.
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.
National Processing: Best for cash discount and ACH payments
Monthly fee:
- $0 for Cash Discount plan.
- $9.95 for Restaurant, Retail, E-commerce or Nonprofit plans.
- $15 for ACH processing.
- $59 for Subscription plan.
- $199 for Subscription Plus plan.
- Custom pricing available.
Hardware: Quote-based.
Payment processing fees:
- Cash Discount: interchange only.
- Restaurant: interchange plus 0.14% and 7 cents per transaction.
- Retail: interchange plus 0.18% and 10 cents per transaction.
- E-commerce: interchange plus 0.29% and 15 cents per transaction.
- Nonprofit: interchange plus 0.12% and 6 cents per transaction.
- ACH: interchange plus 0%-1.5% and 48 cents per transaction.
- Subscription: interchange plus 9 cents per transaction.
- Subscription Plus: interchange plus 5 cents per transaction.
Type of transactions: In-person, online and recurring payments.
POS: Integrates with Clover POS systems.
Integrations: QuickBooks, WooCommerce, BigCommerce, Ecwid, Zendesk, Shopify and OpenCart.
Why we like it: National Processing prices its plans based on your type of business and also has plans for offering cash discounts and ACH transfers. With cash discounts, you can pass processing fees along to your customers on card payments and charge less for cash transactions. Read our full National Processing review.
HighRiskPay.com: Best for adult-themed businesses
Monthly fee: $9.95.
Hardware: Quote-based.
Payment processing fees: 2.95% plus 25 cents but may vary with credit or type of transaction.
Type of transactions: In-person, online and recurring payments.
POS: None.
Integrations: E-commerce platforms including Shopify, Wix, Shift4Shop (formerly 3dcart) and Opencart..
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.
Inovio: Best for online payments
Monthly fee: Quote-based.
Hardware: N/A; online-only.
Payment processing fees: Quote-based.
Type of transactions: Online and recurring payments.
POS: Inovio virtual POS solution available.
Integrations: Includes Infusionsoft for marketing and sales, Nats for advertising and CartConnect.
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.
Soar Payments: Best for hard-to-place businesses
Monthly fee: Quote-based.
Hardware: Can provide to you or help you reprogram existing; pricing is quote-based.
Payment processing fees: Quote-based.
Type of transactions: In-person, online and recurring payments.
POS: Integrates with third-party POS systems.
Integrations: Accounting systems including QuickBooks and Zoho; e-commerce platforms including Shopify, BigCommerce and WooCommerce; and marketing systems including Click Funnels and Infusionsoft.
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.
More about high-risk merchant accounts
Want to learn more about high-risk merchant accounts and credit card processing before deciding which high-risk payment processor is right for your business?
Which businesses are considered high risk?
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 a payment processor, merchant account provider or bank labeling a business as 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 whether transactions primarily happen online or over the phone (these are called card-not-present transactions and have an increased potential for fraud to occur), whether a business sells internationally and the sales volume size.
What should you consider when choosing a high-risk payment processor?
Understanding that your payment processing fees will likely be higher than they are for businesses that don’t fall under the high-risk category, you can focus your search for a high-risk payment processor on factors that include the following:
- Chargeback fees: What does the processor charge for each disputed charge that results in a refund to a customer? Typically payment processors charge in the range of $15 to $25 for each chargeback, while some charge significantly more and a few don’t charge for them at all.
- Accepted transaction types: Consider the types of transactions your business processes and whether the processor will accept those. Some may be online-only (such as Inovio) whereas others will accept both in-person and online payments.
- Services offered: Some high-risk payment processors offer only the payment processing service, which means you’ll need to secure a high-risk merchant account through a separate provider. Others offer both payment processing and merchant accounts and additionally may offer POS systems. Consider your business needs and whether you prefer a single point of contact or finding the best deal across multiple providers.
- Integrations: Most payment processors provide at least a few integrations with third-party applications and software. It’s helpful to choose a processor that integrates directly with accounting and tax software, and if you sell online, you likely want a processor that integrates with popular e-commerce platforms and marketplaces.
Last updated on August 29, 2023
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.
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