While we’ve made many advancements in payment processing in recent years, many high-risk businesses still struggle to find the right payment processing provider to meet their needs.
Despite the struggles and obstacles associated with operating a high-risk business and accepting payments for that business, choosing a payment service company that can cater to your business-specific needs can enhance several operational aspects of your business and ultimately impact your long-term success.
These include:
- Transaction efficiency
- Reduced rejection rates
- Improved customer satisfaction
Careful, though. Choose the wrong payment processing company to work with, and those could quickly turn into massive issues like upset customers, payment processing inefficiencies, and more that could ultimately lead to a significant loss in revenue.
That’s why we’ve taken a look into some of the service providers on the market today, their pros and cons, and answered questions that’ll guide you through the process.
A Quick Word About High-Risk Payment Processing
Businesses considered high-risk are typically associated with a higher chance of fraud, chargebacks, high-value goods and services, and the hard-to-navigate regulatory environments of the industries they fall under. Industries that are mainly classified as high-risk include:
Tobacco, Vape and E-cigarettes
The biggest challenges? Businesses dealing in high-risk trades often face the challenge of finding a payment provider willing to take on the perceived risks. Some of our very own merchants have found us after having their account shut down by a provider due to the unexpected changes that come about in high-risk sectors.
We were forced to switch from our previous acquirer due to some policy changes. So, we were on the lookout for a new provider who would, first and foremost, offer us the needed guidance in the on-boarding process. After working with FastoPayments we’ve been able to avoid excessive downtime that comes with the dynamical regulations in our industry.
On the other hand, adult merchants we work with have come to us with problems that stem from the scrutinization of the trade.
One of our leading adult merchants had their accounts suspended because of their quick growth. Hence, they were on the lookout for a more reliable and sustainable provider who wouldn’t minimize their reach.
Our previous providers weren’t dependable nor sustainable enough to support our website through our growth. We kept getting declined by bank after bank because we were growing quickly in a very high-risk field. We were searching for a payment provider that’s attentive, supportive, and solution-oriented. FastoPayments’s team helped us find a sustainable solution and equipped us with several options. Our experience working with them has been fantastic. They’re quick on their feet and their proficiency in the field is incomparable.
What’s the Best High-Risk Payment Processor in 2024?
Our aim at FastoPayments is to, first and foremost, tailor every merchant’s experience with us to their specific needs. We believe that in order for us to succeed, we have to do everything in our power to help our merchants succeed.
To do that, we’ve used our years of experience to help analyze the different characteristics of each and every business we have ever worked with and put it into practice through the tools we acquire our merchants with.
Based on those insights, we’ve created all-inclusive high-risk merchant services that include:
Card processing
Banking
Crypto processing
APMs
Local payment methods
E-wallets
Hosting for high-risk sites
Mass payouts
Six payment gateways integrated with over 300 acquirers worldwide
All modern prevention tools are available with a FastoPayments high-rish merchant account, including chargeback prevention, chargeback alerts, fraud prevention and screening, 3D secure, token storage, card updater, and network tokens.
Customized support is also at the forefront of our services. We are available 24 hours a day, 7 days a week. Reach us through WhatsApp, Skype, Slack, Telegram, or your preferred channel, and we’ll be there to help you out no matter the time of day.
In addition, we value transparency and honesty. Combine this with our knowledge and you have a winning package for any high-risk merchant.
We offer a very open pricing structure, which will always be approved on your end before we enter into a cooperative relationship.
That’s why we’ve broken down the following fees for you:
MDR: Percentage fee per transaction that’s deducted immediately from the funds prior to being released to your main bank account, IC++ (interchange), which means that the card scheme and card issuing bank take their cut
Authorization fee: Acquiring fee per transaction to either approve or decline a payment
Refund fee: Fee per refund that’s initiated from the merchant side to reimburse a purchase
Chargeback fee: Fee caused by a chargeback that has gone through, as a chargeback can be prevented
Rolling reserve: “Involuntary” savings that are collected over time to cover unexpected costs in case of collateral damage like bankruptcy, etc.
Transaction fee: Fee per transaction on the high-risk gateways side, which occurs on approved and declined transactions
3DS fee: Fee to activate the use of 3DS on transactions, which is mandatory in EU
Set up fee: Start-up fee charged before the solution provider takes on a deal if it’s deemed riskier than average OR a setup fee which will be charged after getting your merchant account approved by the acquiring bank
Monthly fee: Recurring fee for the high-risk gateway services, including activation, monitoring, and maintenance
Dormancy fee: Fee charged after 3 months of inactivity on the merchant’s side
Extra tools that can be added, if needed, include:
Fraud screening: Fee for extra fraud prevention tools that go through every single transaction to pick up on patterns and prevent fraudulent activity
Chargeback alerts: Fee for alerts that give the merchant the opportunity to stop the chargeback from happening by refunding or resolving disputes at the root
Tips for Choosing the Best High-Risk Payment Processing Company
Before settling on a high-risk payment service provider, it’s important to really understand your needs, depending on what industry you’re in and which region you operate from, as well as those of your target audience.
Remember, the likelihood and process of getting approved for a high-risk merchant account are more situation-specific than anything else in payment services.
In general, the following factors include the main points every business should consider when selecting a high-risk payment processor.
Security First
Clients of high-risk establishments (really any business) want reassurance that their data is in safe hands. They’re aware of the main risks and the common cyber threats, so being able to guarantee that everything is handled with care and caution can be game-changing in terms of reach and customer trust.
Some of the tools we’ve incorporated into our operations at FastoPayments to help you tend to those customers’ needs include machine learning tools that surpass human capabilities when it comes to monitoring payment patterns, for example.
High Approval Rates
A high-risk service provider’s approval rate reveals the number of transactions the service provider has been able to authorize and approve successfully.
So, a proven track record with a positive rate can give great insight into how well the provider could aid your business’s transaction processing and growth.
Clear Fees and Contract Terms
High-risk accounts typically have higher fees due to the complications and, well, higher chance of risk. The fees are often less negotiable as well, which makes pricing a huge factor when comparing different high-risk payment processors.
People want to be paid immediately, so it’s important to consider the contract terms when researching different providers. Each industry, region, and acquirer sets different fees which often also depend on a business’s history. Generally, the standard payouts are weekly with a 10% rolling reserve.
Great Customer Support
The customer support capabilities of a payment service provider are often overlooked and underrated.
When operating in a high-risk industry, though, a fast and knowledgeable support team can totally transform the future of your business. In such trades, unforeseen issues need to be addressed promptly and head-on.
The support team at FastoPayments, for example, consists of six experienced and eager payment specialists who are happy to assist with any doubts or matters round-the-clock.
FastoPayments is more responsive and offers better support than competitors in the space offering high-risk payment processing solutions. We try to restrict the industries we work with so we can ensure we're truly knowledgeable about the select few we do business with.
Easy to Use & Integrate
Integration and ease of use of payment services can greatly enhance the operational side of a business as well as enhance the customer experience.
Third-party payment platforms that are easy to use will likely increase the number of customers who finish purchases.
At FastoPayments, that’s why we work with six different integrated gateways, and we’re building our very own CMS to make our merchants’ lives easier.
The CMS will enable our customers to access their own dashboard to have a clear overview of their volumes, transaction processes, processing fees, and payment terms, among other features.
The issue is that every single developer that each merchant works with views integration documentation differently. That's why our goal is to continue developing in-house dashboards and platforms that are easy to navigate and understand.
Get Started with FastoPayments
The best way to go about this process is by carefully assessing all of your top choices. Consider your business’s specific needs and circumstances and try to pick a high-risk payment processor who’d be able to cater to those needs.
FastoPayments is a leading solution provider that helps merchants around the world and offers all-inclusive merchant service packages along with competitive pricing. “High risk, high reward” is the motto we live, breathe, and work by.
For high-risk merchant account and payment gateway solutions from one of the best high-risk payment processing companies, get a free, no-obligation quote for a high-risk merchant account and payment gateway here.
We’ll review your business information and get back to you ASAP.
