Best Credit Card Processing for High-Risk Businesses in 2025

If your business falls into a ‘high-risk’ category for example travel, CBD, online gambling, or subscription services, finding an affordable and reliable credit card processor can be a challenge. In 2025, regulations are tightening, but there are still great options.

What Makes a Business ‘High-Risk’?

• High chargeback rates

• Large ticket sizes

• Operating in regulated industries.
  

How to Improve Approval Odds

1. Be Transparent in Your Application
   Provide detailed business descriptions, sales methods, and refund policies.

2. Reduce Chargeback Risk
   Offer clear billing descriptors, proactive customer support, and a visible refund policy.

3. Prepare Financial Documentation
   Bank statements, tax returns, and proof of processing history speed up underwriting.

4. Start with Lower Processing Limits
   Some processors will approve you faster with a lower initial monthly volume, then scale later.

Tips to Avoid High-Risk Processing Pitfalls

• Watch for Hidden Fees – Some providers tack on PCI fees, statement fees, or “risk reserve” charges.

• Avoid Long-Term Contracts Without Exit Clauses – You may find better rates later.

• Monitor Your MID Health – High chargebacks can lead to sudden account termination.

• Keep Chargebacks Under 1% – This is often a Visa/Mastercard threshold.

Best High-Risk Credit Card Processors in 2025

1. PaymentCloud – Best Overall
Works with a large network of banks to approve high-risk merchants, competitive rates.

2. Durango Merchant Services – Best for International Sales
Specializes in high-risk accounts, strong global processing capabilities.

3. SMB Global – Best for Custom Solutions
Tailored pricing models for niche industries, strong support.

4. Host Merchant Services – Best for Customer Service
Transparent pricing and dedicated account reps.

Common Myths About High-Risk Merchant Accounts

Myth 1: All High-Risk Processors Charge 5%+
Not true — with good documentation and lower chargeback risk, you can secure rates in the 2.5–3.5% range.

Myth 2: High-Risk Means Slow Funding
Some high-risk providers now offer same-day or next-day payouts.

Myth 3: Only Offshore Accounts Approve High-Risk Businesses
Many US-based processors work with high-risk industries.

ScaleUp Tip

Tips for Lowering High-Risk Processing Costs

• Maintain low chargeback rates.

• Provide clear refund policies.

• Choose a provider that offers chargeback management tools.