High Risk Payment Processing

High Risk Payment Processing

Big and small businesses accept all forms of credit cards and growing to allow a more comprehensive array of online payments. The complex e-commerce industry requires merchants to educate themselves about all the changing aspects of the industry and accounts. A newbie benefits form learning how a merchant account and payment gateway compare, and what is considered a high-risk merchant in their industry.

Businesses that face challenges in getting account instant approvals

You will have trouble getting approvals if your business involves high-risk payment processing. The following are examples of high-risk businesses:

  • Airlines
  • Debt collection
  • Modeling
  • Travel agencies
  • Cannabis dispensaries
  • Betting sports sites
  • Weaponry business

Which are the best high-risk merchant accounts for small businesses?

Merchant account

This account is an online bank account that holds money temporarily after the payment gains approval from a payment gateway. The money stays in the account for two to seven days before it transfers to a real bank account. Merchant accounts are in two major categories:

Aggregate merchant account

The money a customer pays is part of a pool with those of other companies. You should provide the correct details of the company and the products to differentiate the money from others. You will not have exclusive access to the account and will typically lack the powers to negotiate the rates of the account. 

Dedicated merchant account

These high-risk merchant accounts offer one complete control over the funds. The account provider subtracts the processing fees and deposits the rest of the money into the business account. The most effective practices of the best merchant account provider are checking and correcting errors of the transactions, applying the right steps to solve a fraudulent activity. It is a better option for small businesses because you can adjust the costs of transactions. Fintech will take swift action in debiting the account when the clients make chargeback claims to maintain proper transactional practices.

What is a payment gateway?

This e-commerce application system allows credit card payments for e-commerce transactions, online retail pays, and the traditional brick and mortar payment methods. Customers will fill out credit cards in the checkout process for the online store to authorize the transaction and payment process.

The payment gateway verifies if the information matches the data on credit cards. They then approve the payment and transfer the money from the customer’s account to the merchant account.

  • The main attribute of this transactional process is that you do not have to change the bank accounts, and the entire process is more straightforward than when working with a merchant account.
  • These payment modes incur additional transactional costs
  • The gateway sends customers to third parties, which causes a reduction in conversion rates

The best high risk payment processing depends on the business’ nature and the owner’s financial comfortability. A brick and mortar store will benefit from a merchant account, while an online business is better with payment gateways – clients have an easier time entering and approving credit card details.


Another criterion for choosing the best review of a high risk payment processing option is evaluating the differences between a payment service provider and an independent sales organization merchant account. A PSP account is easy to set up and, therefore, convenient for small businesses. 


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