High-Risk Merchant Account Providers That Are Worth It
You’ve got the best business idea in the world. You stop procrastinating, and you finally gather up enough courage to get that loan and turn your grand idea into a fully-fledged business. And then it happens – no bank will take your business on because your business falls into the ‘high-risk’ category. Oh no! What now?
Well, since you’re here, you know that there’s good news. Before we go into merchant account providers, let's talk a little about high-risk businesses. Lots of businesses, to operate successfully, need to have the ability to accept card payments. It is, after all, an essential part of doing business for a lot of companies. The problem arises when that can't be done. This is generally an issue within certain high-risk industries and even some companies that don't work in such industries but, because of the way they operate, are deemed high risk. Most of the time, businesses that have higher chargeback rates, or subscription and recurring billing, fit into these criteria. When businesses within these confines experience such issues, they may find that conventional processors are unwilling to work with them.
When this happens, they may be classified as high risk. Now, of course, being classified as high risk doesn't automatically mean that a business cannot accept card payments; however, it does complicate matters. In such cases, most of the time the solution lies in a provider that specializes in dealing with such situations. So, who are these providers and how do they stack up when it comes to all the challenges high-risk businesses tend to face?
Quick Overview: We’ll cover three high-merchant account providers that are both worth it and what makes each one special:
Payment Cloud
Easy Pay
Adaptiv
PaymentCloud: The first on our list is PaymentCloud. And it’s a no-brainer really, since it’s the most recognizable brand on this list. PaymentCloud is a provider that’s generally known for working with businesses that have issues obtaining a more traditional/conventional merchant account. This is because their services are specially tailored to accommodate a wide array of high-risk businesses, which, of course, includes dealing with payment processing, payment gateways, fraud prevention, and chargeback management.
Since PaymentCloud is a more tailored service, one specifically customized toward a business's unique characteristics, it’s useful when it comes to more individualized underwriting rather than a standard application process. PaymentCloud specializes in the following high-risk industries: adult, alcohol, CBD, subs, debt collection, dropshipping, firearms, nutraceuticals, supplements, online pharma, travel, iGaming, telemedicine.
Basically, what makes them good is that they work with most businesses that standard processors reject.
Easy Pay Direct: The second provider on the list is Easy Pay Direct. They’re also very well established in this industry. Easy Pay Direct is a service with a focus on businesses that have complicated payment models or models that can pose additional challenges. Some of the models that fit these criteria usually include: recurring billing, subscriptions, free trials, high-ticket transactions, and businesses selling future-delivery products or any services. When talking about the payment structure, we can say that it can contribute to a business that’s generally thought of as ‘higher risk’, even when the industry itself isn’t one that’s of primary concern.
The high risk-industries that Easy Pay covers are: CBD, hemp, nutraceuticals, adult industry, subs, credit repair, debt collection, coaching, telemedicine, iGaming, MLM, direct sales, tobacco, vape, travel, international business What makes them special is that they let merchants split transactions across multiple accounts.
Adaptiv Payments: Adaptiv may not (yet) have the brand recognition as the first two spots have, but this company surely has massive potential to come out on top; and there are a couple of reasons for this. Adaptiv is a high-risk merchant service provider that specializes in (almost) all high-risk industries out there, meaning that they’re ideal when it comes to merchant accounts for businesses traditional processors reject. And they don’t just take any client who wants to work with them – they reserve the right to reject you – they have a proven track record of successfully handling all kinds of business category clients.
Its service has merchant accounts and payment processing that is specifically designed for businesses that otherwise may face restrictions within the confines of more conventional processors. When it comes to Adaptiv, they work with various high-risk business models, each of which can provide payment gateways, fraud protection, chargeback mitigation, and support for multiple different types of payment methods. Because of this, it is a viable option within businesses whose industry or even payment model creates additional processing challenges that need to be tackled.
High-risk industries they specialize: CBD, hemp, nutraceuticals, travel, telehealth, kratom, MLM, subs, e-commerce, SaaS, marketing, SEO, firearms, gaming/casino, online dating, fintech.
But regardless of their specialization, they cover/accept almost all high-risk merchants regardless of category (even the very high-risk ones).
Conclusion: Rejection by traditional payment processors is frustrating, no doubt about it, but that doesn't mean that a business has no other options. This is where high-risk merchant account providers come into play: services that are tailored toward serving businesses that fall outside of the more traditional industries. But each one of these providers is different, and like every business, each company should compare pricing, terms, available payment methods, support, and all other underwriting requirements before making a choice. Sometimes what works for one business doesn't necessarily work for the other.
