More and more businesses are starting to move their operations online as the world takes a turn towards the adaption of being digitally connected.
However, not all businesses are created equal, and specific industries are categorized as “high-risk” due to the large volumes of fraud cases, chargebacks, and other possible liabilities that are prevalent in such areas.
If your business falls under the high-risk category, finding a reputable payment processor specializing in high-risk industries is necessary to ensure efficient and secure online transactions for your business.
This article will examine the top 10 best high-risk payment processors currently available. From renowned industry leaders to up-and-coming companies, we’ll provide you with all the information you need to make the most informed decision for your business.
What is a High-Risk Payment Processor?
A high-risk payment processor is a company specializing in processing payments. More specifically, a high-risk payment processor can, for example, be in the form of software that specializes in providing payment options to “high-risk” businesses. The high risk of a company is derived from factors like the location of said business, the business’s history of chargebacks, and fraudulent activity in its transaction history. High-risk payment processors are a bit different from regular processors because they handle the unique needs and demands of the high-risk business.
Factors to Consider When Choosing a High-Risk Payment Processor
A high-risk business needs to invest capital into attaining a high-risk payment processor. It is a simple fact that high-risk companies have more specialized needs and demands from other regular companies that need to be accommodated in a technical way. The high-risk payment processor strengthens the high-risk businesses’ payment processing against breaches in payment security and especially fraudulent transactions. Below we’ve outlined some key points for companies to consider when opting in to use a payment processor:
Pricing and Fees
When opting for a high-risk payment processor, businesses must be aware of the payment processor’s pricing structure and the associated feeds. The whole point of opting to use the services a high-risk payment processor provides is to meet the demands of a high-risk business effectively.
Accepted transaction Methods
Also, businesses need to consider the acceptable transaction methods of the high-risk payment processor. Finding a high-risk payment processor that accepts the payment types that a high-risk business is already used to will ease the software’s onboarding process. Moreover, businesses can increase the number of acceptable payment types and strengthen their payment processing as a whole. For some high-risk businesses, there may be a limit of good transaction types due to geographical location. In this scenario, a business would need to invest in a high-risk payment processor that accommodates this need.
Method of Integration
To ensure the business’s integrity remains on its own to feet alive and well, a high-risk business should also familiarize itself with how the high-risk payment processor is integrated into their business model. For some, businesses may need to be operating on outdated or busy software that may cause the integration of the new high-risk payment processor to shut down other operating systems of the business. In some cases integrating new software when all of the moving places are already not in order could cause a website crash that significantly halts the operations of the business. This should be looked at to be avoided whenever possible.
Private Security Against Fraudulent Transactions
Another key factor in opting for a high-risk payment processor is for businesses to look into the security policies of the payment processor and make sure that the list of security measures provided by the payment processor is in accordance with the needs of the business. These measures can be in the form of encrypted payment options, tokenization, and fraud detection provided by the payment processor to strengthen the integrity of processing transactions.
Support Line and Resources
A business should also consider the level of support they can expect to receive from the host of the payment processor should any complications arise, either from integration or troubleshooting. It is essential to invest in a high-quality payment process that will meet the needs of the high-risk business and provide the business with adequate support in times of operational failure of the processing system. This precaution will severely decrease the chances of anything going wrong and decrease the time of halting business operations should any complications arise.
A quality high-risk payment processor includes the following listed above: Pricing and fees, payment methods, optional integrations, security measures, and support resources in the wake of operational failure. Businesses looking to opt-in for a high-risk payment processor should evaluate each of these factors with diligence to receive the most value from their final selection.
For businesses that continue to learn about and research how high-risk payment processors can meet the needs and demands of their payment processing flow, we have listed a few sources to find high-quality high-risk payment processing options below.
Here are the top 10 high-risk payment processors on the market in 2023.
Top 10 Best High-Risk Payment Processors in 2023
All companies listed below have been selected and evaluated based on looking into the following vital factors — companies’ reputation, security, compatibility, fees, chargeback management, customer support, and flexibility.
1. Zap Payment Systems
For industries in CBD, Adult Industry, Airlines, Timeshare, Firearms, Vapes, and E-cigs, Zap Payment Systems have been providing thousands of high-risk businesses with high-risk payment processing solutions for well over ten years of satisfaction under their belt. Zap payment solutions have established itself as a high-quality payment processing provider, earning the number 1 spot on this list.
Zap offers a variety of processing solutions that can be tailored specifically to the most vital aspects of businesses’ payment processing. More importantly, Zap has made a name for itself by virtually minimizing the risks associated with high-risk transactions like fraud protection, encryptions, and tokenizations to perfection. Zap is a great payment processor for solidifying the strength of a business’s payment processing operation.
2. High-Risk Payment Processor HighRiskPay.com
High-Risk Pay Merchant solutions is another grandiose selection in the realm of high-risk payment processing for high-risk businesses to consider. They specialize in all of the industries that are associated with high-risk transactional potentials. They aid in the progression of business integral payment structures.
One of the most notable factors about this company is that high-risk businesses tend to have to do a more than average amount of paperwork and submit them to the high-risk companies and will have to experience a long wait time before any progression to their operation has been made. In the instance of utilizing High-Risk pay, they have arguably the best turnaround time from the initial stages when getting their businesses on board their system.
Most of the time, the turnaround time of these businesses can be as little as one day before the processing system is underway to aid the companies. This system specializes in fraud prevention, amongst other notable features a business should invest in when looking for a payment processor.
3. Victor Payments
Victor Payments has been in the industry to provide high-risk businesses with more than the main methods of increasing their integrity regarding payment processing. Victor payments have been in business for over 30 years and have a mountain of testimonials to ensure its good reputation is the first thing business owners will notice when opting for a high-risk payment processing provider.
Victor payments also work with any industry that is labeled as high risk. Victor Payments makes the onboarding process as simple as possible for inquiring businesses to mitigate confusion or misinformation about their services. Victor payments get straight down to the necessities of the business and, more importantly, how they can accommodate them immediately after the first outreach.
Payment Cloud Inc is all about giving modernized solutions in an ever-changing market. They make it especially easy to incorporate their technologies into business with hundreds of different alternatives available to business owners.
Payment Cloud specializes in all elements of High-risk payment processors, emphasizing fraud prevention enhancements for businesses. Credit Correction, Technical Support, and Security are a few of the ways in which Payment Cloud Inc. enhances the user experience.
5. Zen Payments
Zen payments is another high-risk payment processing provider specializing in solutions for high-risk businesses. They operate with all categories of high-risk businesses. They offer well-known and various integration methods that make the onboarding process simplistic and straightforward. They have been providing high-risk payment processing solutions for over 15 years. Their systems allow businesses to process all major carriers. They offer fast access to funds and provide a free processing terminal.
6. SOAR Payments
Launched in 2015, SOAR Payments has had the sole mission of providing the high-risk industry with progressive solutions in the account space. In 15 years, they have constantly developed their solution methods making sure they keep up with the needs and demands of modern-day high-risk businesses.
7. Host Merchant Services
Host Merchant Services is a payment processing company that provides credit card and electronic payment processing services to various high-risk businesses. They will significantly minimize the amount of merchant service that will improve different aspects of a business, like a customer service and payment processing security.
Host Merchant Services was founded in 2010, meaning they have over ten years of experience providing high-quality services to high-risk businesses. They prioritize customer satisfaction and service, meaning that their turnaround time for faulty operations is handled quickly and effectively should they arise.
8. National Processing
National Processing offers award-winning merchant processing solutions to high-risk businesses. They have serviced thousands of businesses in the industry ranging from end to end in scale. They also put a high priority on providing their clients with exceptional customer service and support.
They are well-versed in handling and solving the prominent obstacles associated with the high-risk business industry and have the answer to everything a business could encounter. Their primary focus is on transparency and providing excellent service, and for businesses looking to avoid the confusion of applying for a high-risk payment processor, National Processing is a great selection.
9. SMB Global Payments
SMB Global Payments allow high-risk businesses to monitor their high-risk merchant account in real-time with fraud and chargeback prevention platforms. Businesses can leverage their comprehensive analytics and reporting to preemptively take action against chargebacks and win back their lost revenue.
They provide their clients with patented technology displaying chargeback counts in real time. This platform also allows businesses to forecast month-end results.
10. Payline Data
Payling is a trusted source for high-risk payment processing solutions. They offer customizable payment solutions to meet each business’s unique demands and needs. They provide new and flexible options to meet all business needs, from POS systems to robust e-commerce solutions.
They provide transparent pricing and industry-leading technology. Their services allow businesses to operate their business however they see fit. Payline Data is another well-equipped high-risk payment processing provider.
High-Risk Payment Processor Vs. Regular Payment Processor
There are significant differences between which payment processing can accommodate which kind of business due to this, there has been a separation between payment processors, ie, High-risk payment processors and Low-risk payment processors.
High-risk businesses often come with high levels of chargebacks and fraudulent transactions, and other liabilities associated with the business model. For this fact defining the best payment processor for a business is crucial if you want to reap the benefits of maximum yield in revenue generation.
On the other hand, low-risk businesses don’t typically feature the number of liabilities associated with their business model and, therefore, can make a regular payment processor suffice. Let us take a closer look at what factors dictate if a business is labeled as high risk.
Some industries, by default, are rendered high-risk industries. These typically deal with highly confidential customer information that should be encrypted with a high focus on fraud prevention to prevent fraudulent transactions.
Geographical location is another factor that will dictate if a business is at high risk. Depending on the law of the United States, some goods or services will need to conform to strict policies to avoid political and legal infractions.
If a business has a high history of chargebacks, this can also indicate that a business is a high risk. In this way, regular payment processing providers may not work with a company simply due to this metric and will need to opt for a more specialized high-risk payment processing provider.
How Long Does it Typically Take for a High-Risk Payment Processor to Set up an Account for a New Client?
How long a firm must wait before establishing an account with a high-risk payment processing provider depends on several variables. The duration largely depends on the amount of evidence the service provider requires to qualify a business for its services.
In addition, once the provider has received all of the initial onboarding information, there will be an additional waiting period for the business to serve as a planning period for the high-risk payment processing provider to strategize their solutions based on the business’s unique needs and demands. Integrating and learning how to use the company’s software platform will require additional time before the service becomes beneficial to the business’s operations.
Are Any Limits on the Volume of Transactions or the Amount of Money that a High-Risk Payment Processor can Process?
The brief answer is “yes.” The maximum number of transactions that the high-risk payment processor can complete will vary based on the high-risk payment processing provider. This is often done to reduce the risk associated with supplying services to a high-risk enterprise. Depending on the demands of the business, these restrictions may be greater or smaller.
If your business is categorized under a high-risk industry, choosing a reputable and reliable payment processor is important for your business for efficient and secure transactions. By considering all the factors we’ve gathered in this article, such as reputation, security, customer support, fees, compatibility, chargeback management, and flexibility, you can make an informed decision when selecting a high-risk payment processor you want to use for your business.