Top 5 High-Risk Payment Processors for Shopify in 2024

Selecting a suitable payment processor is crucial for high-risk Shopify businesses. The wrong choice can lead to frozen funds, higher fees, or even account termination. Finding a reliable payment solution is more critical than ever for businesses operating in high-risk industries, such as online gaming or adult services.

This blog will review the Top 5 High-Risk Payment Processors for Shopify. These processors are designed to handle high-risk businesses' unique challenges, ensure secure transactions, and help you make an informed decision.

What Defines a High-Risk Business?

A high-risk business poses an elevated fraud risk to payment processors, often due to the nature of the industry or its business model. Businesses in industries such as adult entertainment, e-cigarettes and vape shops, and online gambling are commonly classified as high-risk. This classification makes it difficult for these businesses to secure support from traditional payment processors, who may deny their applications or charge significantly higher fees for the risk they assume by offering payment services.

Common High-Risk Industries

Some industries are inherently more susceptible to fraud, chargebacks, or legal challenges, making them high-risk in payment processors' eyes. Examples include eCommerce businesses, anything adult-oriented, tobacco and vaping industries, online gambling, and financial services. 

Even sectors like furniture stores can be considered high-risk due to the potential for large transaction sizes and the associated financial risks. High-risk businesses are often seen as having a poor reputation, making it difficult to find payment processors willing to work with them.

Why High-Risk Processors Matter

High-risk payment processors are essential to companies' operations in these problematic sectors. They are aware of the particular dangers that these companies face and offer tailored solutions to support these retailers in carrying on with their company. 

These processors accept the elevated risks, but often at a price—higher transaction fees and more stringent contract terms. Nonetheless, without the services of high-risk processors, many of these businesses would struggle to accept payments and maintain their cash flow.

High-Risk Payment Gateway on Shopify

Choosing the right payment gateway for Shopify site owners can be challenging in high-risk industries. Particularly when handling credit card transactions, a lot of payment processors are picky about the companies they work with. However, selecting a suitable high-risk payment gateway is crucial for these businesses to continue operating on Shopify without seeking alternative platforms.

High-risk payment processing refers to working with payment gateways that are willing to accept high-risk businesses since there is a greater chance of chargebacks or refunds. These gateways cater to industries that many traditional processors may avoid. For Shopify merchants, finding the right high-risk payment gateway can be the difference between staying in business or being forced to leave the platform. 

For example, a gateway like T1 Payments links the merchant's bank and the customer's payment card issuer, facilitating secure and reliable transactions tailored to high-risk merchants.

Top 5 High-Risk Payment Processors for Shopify

High-risk retailers consistently experience issues with their accounts, including:

• The high-risk companies will be challenging to locate
• It is an expensive proposition for the payment service processors, particularly for new customers.
• Due to the high rate of chargebacks and fraud, processors will exercise caution when granting merchant accounts.

For this reason, it is challenging for business owners to receive permission right away. They should think more carefully about the appropriate payment service providers typically take. You may learn more about the top options through the list of the top five payment gateways.

1. Elavon

The payment platform Elavon offers companies of all sizes a wide range of options for accepting and handling payments. Through partnerships, it also provides card readers, a tablet point-of-sale alternative, and virtual terminals.

It is difficult to compare the company's opaqueness with that of other payment processors, despite consumer assessments highlighting issues with unexpected fees, holds on merchant payments, and sudden account closures.

Elavon bases its price structure on quotes. Estimates are most likely dependent on the kind of business, volume of transactions, and other factors that will affect how the business employs the services of the organization. To obtain a quote, use the website to get in touch with a representative and give information about your business.

2. Authorize.net

Authorize.net payment gateway was built by PaymentCloud, a California-based startup that opened for business in 2010. A network of third-party processors is only one of the many advantages that PaymentCloud's skills in placing high-risk enterprises have provided to these merchants. To help processors accept high-risk merchants without paying account creation fees, they will assist small and medium-sized merchants.

PaymentCloud designed this solution to be interoperable with third-party gateways, even though Authorize.net is only a payment gateway. Additionally, Authorize.net provides free integration of the user's account with the virtual terminal.

3. PayKings

PayKings is a PSP registered in St. Petersburg that specializes in offering payment services to high-risk retailers. It offers advanced high-risk merchant services that make it easy for customers to keep track of individual transactions or batch totals. Many industries, such as adult, e-cigarette and vape, dating, weapons, nutraceuticals, debt collection, etc., are supported by PayKings.

Supporting international merchant services is one of this gateway's most valuable features, making it easy for online retailers to grow their businesses internationally. Additionally, PCI DSS Level 1 compliance will guarantee security. The reasonable rates—just 1% more than the brand interchange fees for cards—are another benefit. Additionally, industries that avoid fraud and chargebacks will safeguard people. Finally, PayKings allows retailers to accept various payment methods, including debit cards, gift & loyalty cards, VISA, Discover, and MasterCard.

4. DigiPay

The DigiPay gateway is connected with Shopify businesses to facilitate processing hemp CBD payments for online sellers. This procedure offers several advantages, especially for high-risk e-commerce companies. The most significant features are controlling risk, examining consumers, and chargebacks.

DigiPay can provide a competitive edge for retailers that take a big risk. Due to the more extensive network, for instance, the payment will be less expensive with more options. Using it may also be significantly streamlined in managing chargebacks and fraud. Customer analysis, ACH check processing, cash discounts, and currency conversion are very effective ways for users to boost sales.

5. eMerchant brokers

The eMerchant brokers payment gate, which locates the high-risk lover partners via their network, is a force for any high-risk firm. By offering their merchant accounts, high-risk enterprises allow themselves to continue selling CBD products in their shops. They may link to the EMB quickly and efficiently, meaning they will be accepted immediately.

The eMerchant Brokers payment gate will approve every high-risk merchant at the lowest rates. Additionally, Shopify store owners can fully customize Fraud Defense capabilities and fraud management solutions. Complete reports containing all of the data gathered will be displayed. Additionally, EMB clients will assist users in optimizing income by speeding up the processing of payment cards. Additionally, our merchants and their customers may get round-the-clock help from our in-house contact center via email, live chat, call centers, and more.

Criteria for Choosing High-Risk Payment Processors

When selecting a high-risk payment processor for your Shopify store, several crucial factors must be considered.

Security should be a top priority. High-risk businesses face increased exposure to fraud and chargebacks, so robust security measures, such as advanced fraud detection and chargeback protection, are essential.

Integration with Shopify is another key criterion. A payment processor that offers seamless integration with Shopify ensures that your store's checkout process runs smoothly without disruptions or compatibility issues.

Fees and Rates for high-risk businesses tend to be higher due to the added risks involved. Understanding the fee structure, including transaction rates, setup fees, and hidden charges, is essential to avoid unexpected costs.

Customer Support is vital in handling high-risk transactions, especially when challenges arise. Choosing a processor with responsive and knowledgeable customer service can significantly improve the management of issues quickly and effectively.

Lastly, a processor's Reputation is crucial. Seek a supplier who has a proven track record of managing transactions with a high degree of risk, as this indicates reliability and expertise in managing the unique challenges that high-risk businesses face.

How to Implement a High-Risk Payment Processor on Shopify

Step-by-Step Guide

Choose the Right Payment Processor: Select a high-risk payment processor that fits your business needs. Look for one that supports Shopify integration and is experienced with high-risk industries.

Create an Account: Register with the preferred payment processor and provide the required paperwork, such as business information and bank account details. Due to your business's high risk, be prepared for additional scrutiny.

Enable Shopify Integration: Navigate to your Shopify store's admin dashboard once your account is approved. Go to Settings > Payments, and select Third-party payment providers.

Connect Your Processor: From the list of available payment providers, choose your high-risk payment processor and link it to your Shopify store, conforming to the instructions displayed on the screen.

Test Transactions: Before going live, test transactions to ensure everything functions properly. This helps identify any integration issues early on.

Best Practices for Implementing a High-Risk Payment Processor on Shopify

• Test Thoroughly: Perform multiple test transactions after integration, covering different payment methods, currencies, and error scenarios. Use sandbox environments, if available, to simulate real-world conditions without risking actual payments.
• Set Up Fraud Protection Tools: Configure fraud protection features like transaction limits, address verification systems (AVS), and 3D Secure. Regularly review and adjust settings to balance security with customer experience.
• Monitor Performance: Monitor transaction performance, looking for declines, delays, or chargeback trends. Use analytics to identify potential issues and make adjustments as needed.
• Stay Compliant: Ensure compliance with regulations like PCI DSS. To comply with industry standards, prevent penalties or legal action, and evaluate and update your procedures on a regular basis.
• Maintain Strong Customer Support Channels: Provide clear support for payment issues, resolve disputes quickly to prevent chargebacks, and enhance customer satisfaction, which can improve your standing with the processor.

Read more: 

• 9 Shopify CBD Payment Processors & Key Considerations
• 10 Best Payment Methods for Shopify stores 
• Handling Shopify Chargebacks: Solutions And Prevents

FAQs

Can I switch payment processors if I'm unhappy with my current one?

Yes, you can switch payment processors, but it's essential to carefully review your existing contract for any termination fees, penalties, or notice periods that could apply. Before switching, research alternative processors to ensure they offer better terms and seamless integration with Shopify. Migrating your payment gateway can involve downtime or disruptions, so plan the transition carefully to minimize the impact on your store's operations.

In what ways may a high-risk payment processor benefit my company?

Your business may need a high-risk payment processor if you're in an industry with high chargeback rates, fraud concerns, or regulatory challenges. Examples include eCommerce, gambling, or subscription services. Processors may label your business as high-risk based on these factors.

Are there extra fees for high-risk payment processing on Shopify?

Yes, high-risk payment processors typically charge higher transaction fees compared to standard payment gateways. These fees can include higher transaction percentages and setup fees, monthly fees, and chargeback fees. The elevated costs reflect the increased risk these processors take on by servicing high-risk businesses.Before making a choice, examine and contrast the charge schedules offered by many high-risk processors.

How can I reduce chargebacks with a high-risk payment processor?

Reducing chargebacks involves a multi-faceted approach. Use fraud protection tools offered by your processor, such as AVS and 3D Secure, to verify customer information and detect suspicious activity. Having open lines of contact with consumers regarding your rules, goods, and services may assist keep conflicts from turning into chargebacks. Additionally, by creating a clear return and refund policy, offering prompt, professional customer care, and cultivating trust, you may lessen the likelihood of chargebacks.

Conclusion

Choosing the right high-risk payment processor is essential for the success of your Shopify store, especially in industries prone to chargebacks and fraud. We've discussed the key factors—security, integration, fees, and customer support—that are vital in making the right choice. Ensuring your processor meets these criteria can help your business run smoothly and securely.

When selecting a payment processor, consider your business needs and industry demands. Feel free to reach out if you need more personalized guidance or have further questions. You can also explore our other resources for more insights to help your Shopify store thrive.