Running a business in a high-risk sector often means facing extra hurdles when it comes to payment processing. A specialist high-risk merchant account can help you get approved and stay operational without the stress of sudden account freezes or declined applications.

While many traditional providers shy away from industries like online gaming, subscription services, and the sale of regulated goods (such as alcohol or CBD products), there are processors who specialise in supporting businesses like yours.

These accounts allow for seamless card payment acceptance, albeit at higher fees. In this guide, we’ll break down how high-risk merchant accounts work, why you might need one, and how to choose the right provider to support your business.

Key Points to Know

Accepting Payments in Challenging Sectors

High-risk merchant accounts exist specifically to support businesses that are either highly regulated or prone to financial instability. These accounts give you the tools to process debit, credit, and digital payments despite industry roadblocks.

Understanding Risk Classification

You might be classed as high-risk due to being a startup, facing high chargeback volumes, selling in controversial niches, or handling large transaction values. These factors signal potential financial risk to providers.

Know the Trade-Offs

In exchange for broader payment capabilities, you may face steeper fees, rolling reserves, and slower settlement times. These downsides are the cost of ensuring uninterrupted transaction processing.

Choosing the Right Provider

Seek out firms that are honest about their fees, experienced in your sector, and supportive with strong fraud protection and customer service.

What Is a High-Risk Merchant Account?

A high-risk merchant account is a type of payment service designed to accommodate businesses that face rejection from conventional processors. It allows companies flagged as "risky" to accept online, in-store, and mobile payments.

Risk assessment varies by provider but generally looks at your industry type, financial history, average transaction size, and how often customers issue chargebacks. If your business raises red flags in these areas, you’ll likely need a high-risk solution.

What Factors Make a Business High-Risk?

Business Maturity

New businesses are often seen as unpredictable due to a lack of financial data and trading history. Most high-risk providers are more accommodating to startups than traditional processors.

Industry Reputation

Certain sectors carry more reputational risk than others. These include adult entertainment, cannabis products, and forex trading. Even if you operate legally and ethically, association alone may trigger a high-risk label.

Chargeback Trends

Chargebacks are expensive and disruptive. Industries like travel and subscription services tend to see more disputes, making them high-risk candidates.

Financial Standing

Inconsistent revenue, poor credit scores, or past loan defaults are all red flags for acquiring banks. In such cases, your business and even your personal financial records may be scrutinised.

Transaction Amounts

If your average sale value is high, the risk of large chargebacks increases. Providers prefer lower-risk profiles, so luxury goods and high-ticket services often fall into the high-risk bracket.

Common High-Risk Industries

Adult Entertainment

This category includes online adult content, escort services, and sex toy retailers. Due to regulatory complexities and reputational sensitivities, most processors categorise these businesses as high risk.

Alcohol and Tobacco

Both online and offline sellers of spirits, tobacco, and vape products deal with age restrictions and heavy regulation. This makes them less attractive to mainstream providers.

Gambling and Gaming

Any kind of betting, whether it’s casinos or sports betting, is flagged due to the combination of financial risk and regulatory oversight.

Pharmaceuticals and Health Supplements

Products in this space are subject to strict marketing laws and frequent refund requests. This puts sellers under heavy scrutiny.

Travel and Events

Cancellations, refund disputes, and seasonal revenue fluctuations make these sectors difficult to insure from a payments perspective.

Key Challenges with High-Risk Merchant Accounts

Premium Pricing Structures

High-risk accounts typically include processing fees between 4% and 10%, much higher than standard merchant fees. Chargeback fees can also be more severe, sometimes reaching up to £100 per dispute.

Stringent Contract Conditions

Expect to encounter rolling reserves, where a set percentage of your revenue (e.g., 10%) is held back temporarily. You might also see longer contract terms and strict termination clauses.

Delayed Payment Settlements

Instead of the usual 1–3 business days, you might wait up to a week to receive cleared funds. This buffer allows time to detect fraud and manage risk.

How to Choose a High-Risk Merchant Account Provider

Prioritise Industry Expertise

Work with providers who have real experience with businesses in your niche. They’ll understand the rules, regulations, and challenges you face, leading to better support and smoother onboarding.

Investigate Provider Credibility

Look beyond website testimonials and examine verified reviews on independent platforms. Watch for recurring complaints, especially related to hidden fees or poor service.

Demand Strong Security Standards

The provider should offer PCI DSS compliance, end-to-end encryption, fraud detection tools, and chargeback prevention systems.

Evaluate Support Access

Reliable support can make or break your relationship with a provider. Choose a partner with 24/7 support options and quick response times.

Check for Honest Pricing

A reputable provider will break down every fee: setup costs, monthly charges, per-transaction fees, reserve percentages, and cancellation penalties. Transparency builds trust.

Compare Multiple Offers

Don’t settle for the first provider you find. Line up quotes and compare them based on contract terms, fees, payout schedules, and value-added services.

Ensure System Compatibility

Make sure your chosen provider integrates with the systems you already use - whether it's your ecommerce platform, CRM, or point-of-sale software.

Examples of UK High-Risk Merchant Account Providers

Worldpay

Backed by years of experience, Worldpay works with selected high-risk businesses and is known for scalable, reliable payment solutions.

PayPal/Zettle

Ideal for small ecommerce operations and quick start-ups. Offers no-commitment payment processing with transparent costs.

ccNetPay

Specialises in cross-border high-risk merchant accounts, especially for businesses that sell in Europe.

Instabill

Well suited to sectors like travel, digital products, and CBD. Known for custom fraud prevention strategies.

SME Global

UK-based experts in high-risk accounts for adult, gaming, and alternative finance sectors.

At Expert Compare, we connect UK businesses with trusted high-risk payment providers. Our simple quote tool helps you:

Match with the Right Provider

Avoid wasted time and rejections. We’ll only match you with providers that support your sector.

Make Informed Choices

Compare pricing, features, and service levels across providers, all in one place.

Accelerate Setup Times

Cut down on admin and receive multiple quotes with a single application.

Click below to get started and accept payments with confidence – even in high-risk industries.