Due to the increased risks connected with servicing them, corporations ranging from banks and credit card processors to insurance firms label businesses high-risk.

A business is termed high-risk if it is heavily regulated by the government or inconsistently regulated by different states. Or if it operates in an oversaturated market with organizations of the identical kind.

It also depends on if an enterprise is more likely to default on a mortgage or incur chargebacks. In this article, we will learn about seven industries that should have high-risk processors.

Industries that should have high-risk processors:

1. Subscription-based services

Subscription-based services

Any organization that provides merchant account services will inform you that there are many subscription services available. Furthermore, the popularity of these services appears to be increasing.

Magazines and newspapers are good examples; while physical copies of these media are falling, digital versions are still popular. Many big software firms have transitioned to subscription-based pricing, and there are also multiple streaming services with subscription models for music, movies, and other media.

Subscriptions for food preparation and lifestyle subscription boxes are also available from some firms (with products ranging from razors to makeup). Despite their popularity, subscription services rely on recurring billing systems, which are considered high-risk payment processing.

As a result, subscription services must seek out high-risk merchant account services, as most credit card processors refuse to engage with them. Unfortunately, finding these high-risk payment processing businesses may be difficult.

2. Telemarketing services

A merchant account will make things easy for you and your clients if you operate a telemarketing company. A merchant account allows any telemarketing company, inbound or outbound, to accept credit card payments directly from clients.

This account automates the process of validating and receiving credit card information, as well as transferring the funds to your account. Inbound and outbound telemarketing firms struggle to obtain a merchant account, and even if they can, it is prohibitively expensive. Your daily operations as a telemarketing company are dependent on how many sales you make over the phone.

If you can accept payments from all major credit cards, your company will rise to new heights in no time. Consider a service provider that allows you to take several credit card payments, such as Discover, Amex, Visa, and MasterCard.

3. Bitcoin Mining or Forex Trading

Bitcoin Mining or Forex Trading

Since its introduction in 2013, the value of bitcoin has fluctuated. But its current surge in value has reignited interest in this virtual currency. The explosive expansion of this alternative currency has dominated headlines and sparked a cryptocurrency craze that has people worldwide asking how they can acquire a piece of the Bitcoin pie.

The process of “bitcoin mining” offers an access point for people who wish to join the frenzy without exchanging traditional currencies like US dollars (i.e., fiat currency). Bitcoin mining has become more complex as the digital currency has grown in popularity. A bitcoin user could mine for the digital money on their home computer initially.

4. Cannabis Products / Head Shops

Customers’ purchasing patterns have switched to internet payment methods, and companies have followed suit. It has been seen in the drug paraphernalia market, where shop merchant account services are highly demanded.

Even though many head shops do not sell tobacco, payment processors consider the sale of bongs, glass pipes, and other glassware to be a high-risk transaction. For cards, not present sales, payment processors impose stricter limitations on online head shops.

Finding a payment processor has become more challenging as banking institutions continue to tighten cigarette underwriting requirements. Working with an inexperienced online credit card processing firm that deals with cigarettes might lead to hassles and additional costs down the road.

5.  Pharmaceuticals


Credit card processing in medications, nutraceuticals, and the more nebulous “pseudo-pharmaceuticals” are considered high-risk sales. You are in the pharmaceuticals industry if you sell a drug, product, or supplement that makes a health claim or treats disease. Within the high-risk sector, pharmaceuticals and associated products are regarded to be among the most vulnerable.

Make sure you tell your processor precisely what you sell. There is no need to get FDA clearance, although it may be helpful. Processors may use official websites to check for prohibited substances. However, even if your product does not contain any banned substances, you may still be denied.

6.  Online Dating and Adult services

Adult dating websites are becoming more popular and profitable by the day. Statistics reveal that the online dating and relationship sector is changing people’s perspectives and dynamics within societal norms.

If you’re in this profitable industry, the first and most important thing you’ll need is an adult merchant account to keep your business running smoothly. However, because you will need a high-risk merchant account, getting a merchant account for your business can be a challenging and time-consuming operation.

If you require an adult merchant account for your online dating service, you will be required to obtain a high-risk merchant account. Banks will deem your business too hazardous to create a merchant account due to chargebacks, business issues, and industry preconceptions, leading you to look for alternate options online or offshore.

7. E-cigarettes and tobacco

E-cigarettes and tobacco

As more individuals resort to what is often seen as a safer alternative to smoking cigarettes, the vaping sector grows. Working in the vaping industry as a retailer allows you to access a market that is anticipated to be worth $47.11 billion by 2025.

Because of the growing understanding of the detrimental health impacts of smoking tobacco, younger generations prefer vaping. Retailers are in a great position to grab a portion of the vaping business as manufacturers develop new vape pens and devices.

However, unlike many other types of companies, running a brick-and-mortar or online vape store isn’t as straightforward as it appears, particularly when registering for merchant accounts.


A high-risk merchant account is a payment processing account for businesses that are deemed high-risk by banks. High-risk businesses must pay more for merchant services since they are more likely to encounter chargebacks. The danger of fraud increases as your sales keep on increasing. It is why you should make sure your payment processing system is protected by advanced security solutions that keep fraudsters at bay. If you are a high-risk merchant, this is very crucial.

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Ariana Smith is an enthusiastic fashion blogger and freelancer content writer. She loves to write and share knowledge of the latest fashion trends, fashion, and shopping tips and tricks. She is the chief editor at FollowTheFashion.

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