Choose the Perfect High-Risk Credit Card Processor for Your Business: A Guide

If your business falls under the high-risk category, you may be struggling to find good payment processing services or even open a merchant account. Most banks deny applications from high-risk merchants because their businesses are at greater risk of fraud and chargebacks.

That’s where high-risk credit card processing providers come in. They help high-risk merchants process daily online and in-store credit card transactions and reduce the associated risks and challenges.

Why Do You Need a High-Risk Credit Card Processor?

A high-risk credit card processor can connect you with a trusted bank that welcomes high-risk merchant accounts. You can get instant approval and take advantage of high-quality payment processing services at competitive rates.

You can streamline online, digital, mobile, and contactless payments, ensuring all the funds and customer data stays perfectly safe and secure.

Reducing chargebacks and protecting your business against fraud are some of the top benefits you can expect from high-risk credit card processors. With their expert help, you can prevent and mitigate risks and grow your business for the long haul.

6 Factors to Consider When Choosing a Credit Card Processor

To find a suitable credit card processor for your needs, do some research to compare various companies. Consider the factors below to narrow down your list and pick the best partner who will help turn your challenges into opportunities.

1. Multiple payment methods

Many of your prospects may shop elsewhere if you don’t accept credit card payments from major credit card networks, online payment systems like PayPal, or mobile wallets like Apple Pay and Google Pay.

Find a provider that offers a safe and secure payment gateway that supports multiple payment methods to attract more customers.

2. Chargeback and fraud protection

Credit card processors offer financial tools for minimizing chargebacks. Apart from helping you prevent them, they can assist you with chargeback revenue recovery.

Fraud protection is another benefit you can expect. Thanks to anti-fraud tools’ real-time transaction monitoring features, they can help you prevent potentially fraudulent transactions. 

3. Credit card processing rates

Average credit card processing rates range from 1.5% to 3.5% per transaction, while high-risk merchants pay anywhere from 3.5% to 4.5%, plus the payment processor’s cut (e.g., Stripe, PayPal, etc.).

This isn’t the case with most credit card processors. Their competitive rates are some of the top reasons to choose them since you must pay processing fees for every transaction. There are three pricing models or rate structures to choose from when picking a credit card processor:

  • Flat-rate pricing
  • Interchange-plus pricing
  • Tiered pricing

Flat-rate pricing might be your best bet if you don’t process more than $5,000 in credit card sales per month. All you need to pay are per-transaction fees, and there may not be any monthly or annual account service fees.

If you process more than $5,000 in monthly credit card sales, go for interchange-plus pricing. It includes interchange fees, plus the predetermined processor’s cut (markup) per each transaction.

Tiered pricing includes the markup, interchange fees, and assessment fees, offered at different tiers and rates. The lowest tiers tend to be the most transparent and affordable.

4. Fees

Apart from account service fees, which you may not pay with flat-rate pricing, you need to consider additional credit card processing fees, such as:

  • Chargeback fees;
  • Non-sufficient funds fees;
  • Batch fees;
  • Monthly or annual PCI compliance fees;
  • AVS (Address Verification Service) fees;
  • Voice Authorization fees.

Compare these across various providers to ensure you don’t overpay to facilitate credit card processing.

5. Equipment costs

You can purchase or lease POS hardware or a virtual terminal from your credit card processing provider, which is a one-time expense. Make sure you don’t encounter a potential rip-off, so take the time to learn all about the costs.

Of course, you can obtain the necessary equipment upfront and offset some of your costs.

6. Reliable customer support

Customer support is just as important as all the features above. You wouldn’t want to pick a processor that isn’t available when you need them the most.

You should look for 24/7 customer support and ensure the service team is highly responsible, knowledgeable, and capable of resolving any issue you may face.


Don’t forget to sift through customer reviews to gain a better insight into different providers’ services and make an informed decision.

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