Securing a merchant account is straightforward for most businesses—until it isn't. If you're in crypto, gaming, CBD, or dozens of other industries, you've likely faced rejection after rejection from traditional payment processors.
What Is a High-Risk Merchant Account?
A high-risk merchant account is a specialized payment processing solution designed for businesses that traditional processors and banks consider too risky to underwrite through standard channels.
Key differences include:
- Higher transaction fees (typically 3.5-6% vs 2.9% for low-risk)
- Rolling reserves (5-20% of transaction volume held for 90-180 days)
- More stringent underwriting and documentation requirements
- Volume caps and transaction monitoring
- Longer approval timelines (though SecureMerchant approves most applications within 24 hours)
Industries Classified as High-Risk in 2025
Financial & Digital Assets
- Cryptocurrency Exchanges & Wallets - Regulatory uncertainty and price volatility
- Forex & Trading Platforms - High transaction values
- Prediction Markets - Emerging regulatory landscape
- NFT Marketplaces - New industry with limited historical data
Gaming & Entertainment
- Online Casinos & Gambling - Heavily regulated
- Fantasy Sports - Legal gray areas in many states
- Skill-Based Gaming - Fine line between gaming and gambling
- Adult Entertainment - Reputational concerns
Health & Wellness
- CBD & Hemp Products - Federal vs state legal conflicts
- Nutraceuticals & Supplements - High chargeback rates historically
- Telehealth Services - Regulatory complexity
Real Example: The CBD Dilemma
A Colorado-based CBD company with $3M revenue and 0.2% chargeback rate was automatically rejected by Stripe, Square, and PayPal—not due to business performance, but purely industry classification. After switching to a specialized processor, they gained approval within 48 hours.
What Banks Look at During Underwriting
1. Chargeback History
Critical threshold: Most processors require <1% chargeback ratio
- Historical chargeback rates
- Industry benchmarks for your vertical
- Chargeback prevention measures
- Customer service policies and refund procedures
2. Business Financials
- Credit score - Personal and business credit
- Bank statements - 3-6 months to verify cash flow
- Tax returns - 1-2 years for established businesses
- Business plan - For startups without revenue history
3. Regulatory Compliance
- Business licenses and permits
- Industry-specific certifications
- Age verification systems
- Terms of service and privacy policies
- AML/KYC procedures for financial services
Approval Checklist
✓ Documentation
- Business license and registration
- 3-6 months bank statements
- Tax returns (1-2 years)
- Previous processing statements
- Industry-specific licenses
- Business plan
✓ Website Optimization
- Professional design
- SSL certificate (HTTPS)
- Clear product descriptions
- Transparent pricing
- Detailed refund policy
- Contact information
- Privacy policy and terms
✓ Risk Mitigation
- Fraud detection tools
- 3D Secure authentication
- Real-time chargeback alerts
- Customer service processes
Why SecureMerchant?
- 90%+ approval rate for legitimate high-risk businesses
- 5-second settlement instead of 7-30 day holds
- No long-term contracts
- 24-hour approval
- Transparent pricing
Ready to Get Approved?
Join thousands of high-risk merchants processing over $1B annually.
Start Your Application