Running a high-risk business comes with unique challenges, especially regarding payment processing.
Traditional processors often reject high-risk businesses due to chargebacks or industry risks, leaving you searching for reliable alternatives.
The good news is that specialist payment gateways are designed to handle these complexities, offering secure transactions, fraud prevention, and seamless integration.
I’ve researched the top options to help you find the best fit for your business, whether scaling a dropshipping store or navigating the growing vaping industry.
Keep reading to discover the best payment gateways for high-risk businesses.
What is the Best Payment Gateway for High-Risk Businesses
Nomupay is the best payment gateway for high-risk businesses due to its specialised approach and strong industry expertise. It offers advanced fraud prevention, supports multiple payment methods, and integrates easily with Shopify.
Its transparent pricing ensures businesses know exactly what they’re paying for, making it a trusted choice for high-turnover companies in sectors like crypto, gambling, and dropshipping.
Other strong options include Worldpay, known for its global reach and secure processing capabilities, and Checkout.com, which offers fast processing and scalability with seamless Shopify integration.
Cashflows stands out for its risk assessment tools and multi-currency support, while Trustpayments excels in chargeback prevention and payment optimisation. However, Nomupay’s tailored approach to high-risk businesses and commitment to simplifying payment processing give it a competitive edge.
Payment Gateways for High-Risk Businesses
Nomupay (formerly Total Processing)
Nomupay is a top-notch payment gateway that caters to the specific needs of high-risk businesses. Formerly Total Processing, they have an unmatched level of expertise in this sector.
With a straightforward approach and a commitment to simplifying payment processing, Nomupay has gained the trust of many e-commerce owners in similar situations.
Key Features
- Risk Mitigation: Nomupay employs advanced fraud prevention measures to protect your business from chargebacks and fraudulent transactions.
- Multiple Payment Methods: It supports various payment methods, including credit cards, e-wallets, and more, ensuring convenience for your customers.
- Integration: Easy integration with Shopify, allowing you to set up and start processing payments quickly.
- Transparent Pricing: Clear and transparent pricing structures, so you know what you’re paying without hidden fees.
Who Should Use Nomupay
- Businesses with a turnover of 500k pa
- Any kind of high-risk sector
- The registered entity (and at least one director in the same region) must be UK / EU / UAE.
- Crypto / Adult / Drop-Shipping / Money Remittance / Gaming / Gambling – generally require at least 6 months of processing history.
Worldpay
Worldpay is a reliable and well-established payment gateway known for its global reach and secure transactions. It provides a robust solution for high-risk businesses that can easily handle high transaction volumes.
Key Features
- Global Reach: Worldpay offers international payment processing, making it an excellent choice for businesses with a global customer base.
- Security: Enhanced security features protect your business from payment-related risks, including encryption and fraud detection.
- Reporting: Comprehensive reporting and analytics tools help you gain insights into your transactions and customer behaviour.
- Customisation: Tailor your payment solutions to match your business needs and customer preferences
Checkout.com
Checkout.com is a modern and innovative payment gateway designed to meet the demands of high-risk businesses. Its user-friendly interface and robust features can be a game-changer for your e-commerce store.
Key Features
- Fast Processing: Enjoy quick and efficient payment processing, reducing customer checkout friction.
- Scalability: Checkout.com grows with your business, accommodating increased transaction volumes without compromising speed or security.
- Responsive Support: Access to a dedicated support team that understands high-risk businesses’ unique challenges.
- API Integration: Seamless integration with Shopify through APIs for a hassle-free setup.
Cashflows
Cashflows is a payment gateway that specialises in providing solutions for high-risk businesses. Its focus on reliability and security offers a dependable option for business owners needing a robust payment processing solution.
Key Features
- Risk Assessment: Cashflows conducts thorough risk assessments to minimise fraudulent transactions and chargebacks—customisation: Tailor payment solutions to suit your business, including subscription billing and recurring payments.
- Multi-Currency Support: Easily handle international transactions with support for multiple currencies.
- Secure Transactions: State-of-the-art security measures protect your business and customer data.
Trustpayments
Trustpayments is a trusted payment gateway that understands high-risk businesses’ unique challenges. It provides a comprehensive solution that covers all payment processing aspects, ensuring business owners peace of mind.
Key Features
- Industry Expertise: Trustpayments brings industry-specific knowledge, helping you navigate the complexities of high-risk e-commerce.
- Chargeback Prevention: Robust chargeback prevention tools and strategies to safeguard your revenue.
- PCI Compliance: Trustpayments is PCI DSS Level 1 certified, guaranteeing the highest level of security for your transactions.
- Payment Optimization: Optimization features to increase authorisation rates and reduce cart abandonment.
What Makes A Business High Risk?
A high-risk business is one that payment gateways consider more likely to experience issues such as chargebacks, fraud, or regulatory scrutiny.
Payment gateways assess risk based on chargeback rates, industry reputation, legal requirements, and financial stability.
A chargeback occurs when a customer disputes a payment and requests a refund from their card issuer, which can lead to financial losses for the gateway. High chargeback rates, typically above 1%, increase the likelihood of being categorised as high-risk.
Common reasons a business may be considered high-risk include:
- Chargeback frequency – If a business consistently receives chargebacks, it signals potential issues with product quality, service delivery, or customer disputes.
- Industry reputation – Businesses operating in industries known for higher fraud or customer dissatisfaction are seen as riskier.
- Regulatory complexity – Industries with strict regulations or legal uncertainties increase the risk of non-compliance and fines.
- Financial instability – Payment providers may see new businesses or those with inconsistent revenue as unreliable.
Common High-Risk Industries
Certain industries are more likely to be classified as high-risk due to their nature, customer base, or regulatory environment. These include:
- Adult content – High chargeback rates and regulatory oversight make this sector challenging for payment processing.
- Gambling and betting – Financial regulations and the potential for money laundering raise concerns for payment gateways.
- CBD and cannabis products – Legal status varies across jurisdictions, creating compliance challenges.
- Travel agencies – Long gaps between payment and service delivery increase the risk of cancellations and disputes.
- Dropshipping – Delayed fulfilment times and inconsistent product quality lead to customer dissatisfaction and chargebacks.
- Vape and e-cigarette businesses – Age restrictions and regulatory uncertainty contribute to higher risk levels.
Businesses in high-risk industries often face higher processing fees, reserve requirements (where part of the revenue is held by the gateway to cover potential chargebacks), and stricter contract terms.
Key Features to Look For In A High-Risk Payment Gateway
Choosing the right high-risk payment gateway is essential for businesses that face higher-than-average chargeback rates or operate in regulated industries. Not all payment gateways are willing to work with high-risk businesses, so selecting one that offers security, flexibility, and cost efficiency is essential. Here are the key features to look for when evaluating a high-risk payment gateway:
1. High Approval Rates for High-Risk Businesses
Many mainstream payment gateways, such as PayPal and Stripe, refuse to work with high-risk industries due to the increased likelihood of chargebacks and fraud. A high-risk payment gateway should have a high approval rate for businesses in industries like gambling, adult content, CBD, and dropshipping. Specialist providers are more familiar with these industries’ regulatory and financial challenges, making them better equipped to approve and support these businesses.
2. Chargeback Protection and Fraud Prevention
High-risk businesses are more vulnerable to chargebacks and fraudulent transactions, which can lead to financial penalties and account freezes. Look for gateways that offer chargeback protection services, such as real-time fraud detection, 3D Secure authentication, and chargeback alerts. Some gateways even provide automatic dispute resolution to help businesses recover funds lost to chargebacks.
3. Competitive Processing Fees
While high-risk businesses typically face higher fees due to increased risk, it is important to find a gateway with transparent pricing and reasonable rates. Look for competitive transaction fees, minimal monthly fees, and affordable chargeback fees. Avoid providers that impose hidden costs or excessive early termination fees.
4. Multi-Currency and Global Support
High-risk businesses often serve international markets, so the payment gateway should support multiple currencies and payment methods. Look for gateways that offer dynamic currency conversion and seamless processing of cross-border payments. Support for major credit cards, digital wallets, and alternative payment methods will help maximise customer reach.
5. Integration with Major E-Commerce Platforms
Easy integration with popular platforms like Shopify, WooCommerce, BigCommerce, and Magento is essential for smooth operation. A high-risk payment gateway should offer simple plug-ins or APIs that allow businesses to start processing payments without complex coding or custom development.
6. Customisable Payment Solutions
High-risk businesses often have unique operational needs. Look for gateways that allow you to customise payment flows, checkout pages, and customer communication. This helps create a seamless and professional payment experience while ensuring compliance with industry regulations.
7. Strong Security and Compliance
Due to increased fraud and data breach exposure, payment security is critical for high-risk businesses. The gateway should be PCI-DSS compliant (Payment Card Industry Data Security Standard) and offer encryption, tokenisation, and secure payment processing to protect customer data.
How to Choose the Right Gateway for Your High-Risk Business
Selecting the right payment gateway is critical for high-risk businesses, as the wrong choice can lead to rejected payments, high fees, and account freezes. High-risk companies face unique challenges, such as higher chargeback rates, regulatory scrutiny, and limited options from mainstream providers.
Here’s how to evaluate and choose the best gateway for your business:
1. Industry-Specific Requirements
Different high-risk industries have specific payment processing needs and regulatory challenges. For example, vape and CBD businesses face strict age verification and product compliance requirements, while travel agencies must handle refunds and cancellations efficiently. Choose a gateway that specialises in your industry and understands the associated risks. Some providers have experience with niche sectors and offer tailored solutions like age verification, geographic restrictions, or multi-currency support.
2. Cost vs. Approval Rates
High-risk payment gateways typically charge higher fees due to the increased financial risk. However, the balance between cost and approval rates is key. A gateway with slightly higher fees but a higher approval rate may generate more revenue by reducing payment failures. Consider the full fee structure, including:
- Setup fees
- Monthly fees
- Transaction fees (percentage + fixed cost)
- Chargeback fees
- Refund fees
- Early termination fees
Ensure that the fee structure is transparent and scalable as your business grows.
3. Customer Support and Dispute Resolution
High-risk businesses are more likely to face chargebacks and disputes, so responsive customer support is essential. Look for a gateway that offers 24/7 support and direct access to a dedicated account manager. Some high-risk gateways offer automated dispute resolution and chargeback alerts to help businesses respond quickly and minimise losses. Strong customer support can prevent issues from escalating and protect your merchant account from being frozen.
4. Compliance with Industry Regulations
High-risk industries often face complex legal and regulatory requirements. A suitable payment gateway should be PCI-DSS compliant (Payment Card Industry Data Security Standard) and offer tools for ensuring regulatory compliance. For example:
- Age verification for vape and CBD sales
- Geographic restrictions for gambling transactions
- KYC (Know Your Customer) and AML (Anti-Money Laundering) checks for financial services
A compliant gateway helps prevent fines, legal issues, and potential service disruptions.
5. Flexibility and Scalability
Your payment needs may change as your business grows. Choose a gateway that supports multiple payment methods (credit cards, digital wallets, bank transfers) and currencies. A scalable solution with flexible contract terms will allow you to expand into new markets and handle higher transaction volumes without switching providers.
6. Reputation and Provider Experience
Experienced high-risk payment processors understand the challenges businesses face in regulated or controversial industries. Research the provider’s track record, customer reviews, and industry expertise. A trusted gateway with a history of working with high-risk merchants will likely offer reliable service and consistent approvals.
FAQs
What is a high-risk payment gateway?
A high-risk payment gateway is a payment processing service designed specifically for businesses classified as high-risk due to factors like high chargeback rates, regulatory restrictions, or industry reputation. Unlike standard payment gateways, high-risk gateways are equipped to handle increased financial risk by offering features like chargeback protection, fraud detection, and compliance support. They typically have higher fees and stricter contract terms but provide better approval rates for businesses in industries like gambling, adult content, CBD, and dropshipping.
Does Stripe allow high-risk payments?
Stripe does not generally support high-risk businesses. Due to regulatory and chargeback risks, it prohibits payments for industries like adult content, gambling, CBD, vape products, and certain financial services. If a business is found to be operating in a prohibited sector, Stripe may freeze the account or terminate the service without notice. High-risk companies usually need to use specialised high-risk payment gateways instead.
Does PayPal accept high-risk businesses?
PayPal does not typically support high-risk businesses. It restricts payments for industries like adult content, gambling, CBD, vape products, and certain financial services due to regulatory and chargeback risks. If PayPal detects high-risk activity, it may freeze the account, hold funds, or permanently suspend the service. High-risk businesses usually need to use specialised payment gateways that cater to their industry.
Does Square accept high-risk merchants?
Square does not generally accept high-risk merchants. Due to regulatory and fraud risks, it prohibits payments for industries like adult content, gambling, CBD, vape products, and certain financial services. Square may suspend an account or hold funds if a business is classified as high-risk. High-risk businesses usually need to work with specialised high-risk payment processors.
Why do some payment gateways refuse to work with high-risk businesses?
Payment gateways refuse to work with high-risk businesses because they pose a greater financial and regulatory risk. High chargeback rates, potential for fraud, and legal uncertainties increase the likelihood of financial losses for the payment provider. Industries like gambling, CBD, and adult content also face strict regulations, which can complicate compliance and expose the gateway to fines or legal action. To manage these risks, many mainstream gateways prefer to avoid high-risk businesses altogether.
How can I reduce chargebacks with a high-risk payment gateway?
To reduce chargebacks with a high-risk payment gateway, use fraud prevention tools like address verification and 3D Secure, ensure clear communication with customers through accurate billing descriptors and support info, and implement stronger customer verification for high-value transactions. Regularly monitor transactions for unusual activity and establish a chargeback representation process to effectively dispute invalid chargebacks.
Do high-risk payment gateways have longer payout times?
Yes, high-risk payment gateways often have longer payout times compared to low-risk ones. This is due to the additional scrutiny and risk management measures they implement to protect against chargebacks and fraud. The extra verification steps and reserves that may be held to cover potential losses can result in delayed payouts.
What’s the best payment gateway for high-risk businesses on Shopify?
For high-risk businesses on Shopify, payment gateways like Nomupay stand out as the best. It specialises in high-risk sectors like crypto, adult content, drop shipping, and gambling, offering advanced fraud prevention, multiple payment methods, and easy Shopify integration. Other options like Worldpay and Checkout.com also offer substantial global reach and scalability.
Are dropshipping businesses considered high-risk?
Yes, dropshipping businesses are often considered high-risk, primarily due to their potential for high chargeback rates, product quality issues, and fraud. Since dropshipping companies typically don’t handle inventory directly, there can be delays or discrepancies in shipping and product quality, which increases the likelihood of disputes. Additionally, the ease of setting up a dropshipping store attracts some businesses with less stable practices, further raising the risk profile.
Can vape and e-cigarette businesses use PayPal or Stripe?
Vape and e-cigarette businesses typically cannot use PayPal or Stripe, as both payment processors have strict policies that prohibit the sale of tobacco products, including vapes and e-cigarettes. These businesses often fall under high-risk categories, and both PayPal and Stripe limit or block transactions related to such products due to concerns about regulatory compliance and chargebacks. As a result, alternative high-risk payment gateways are generally recommended for these businesses.
Do high-risk payment gateways support international payments?
Yes, many high-risk payment gateways support international payments, but they may come with additional fees or restrictions depending on the country or industry. These gateways often have more robust fraud prevention tools to handle the complexities of cross-border transactions, including currency conversion and varying regulatory requirements. However, businesses may experience longer processing times or higher transaction fees than low-risk gateways.
Can I get approved for a high-risk payment gateway with bad credit?
Getting approved for a high-risk payment gateway with bad credit can be challenging, as many providers assess credit history to determine the level of risk. However, some high-risk gateways specialise in working with businesses with bad credit and may focus more on the company’s nature rather than personal credit scores. While approval is possible, you may face higher fees, stricter terms, or the requirement for a reserve fund to mitigate the risk.
