Home » High-Risk Credit Card Processing and Merchant Account for Canadian Businesses  

When running a business labeled as “high-risk,” finding the right payment processing provider is easier said than done. High-risk credit card processing is specifically designed for businesses operating in industries or circumstances prone to higher chargebacks, regulatory scrutiny, or financial risk.

For Canadian businesses, this often means higher fees, stricter compliance requirements, and extra paperwork — but it also means access to payment solutions tailored to your unique needs. 

By partnering with experienced high-risk payment processors like SecureGlobalPay, you can quickly set up a high-risk merchant account. This applies to:

• Businesses based in Canada
• US-based businesses with an outlet in Canada
• US-based businesses with customers in Canada

For those who want to learn more, the following article explores the challenges of high-risk processing in Canada, why some businesses are classified as high-risk, and how SecureGlobalPay simplifies payment processing for hard-to-place merchants.

The challenges of high-risk credit card processing in Canada

Operating a high-risk business in Canada comes with unique challenges, especially when it comes to credit card processing. Traditional banks and standard payment processors often shy away from high-risk merchants, leaving businesses in a tough spot. 

Let’s break down the key hurdles you might face.

Higher transaction fees

High-risk merchants typically pay higher transaction fees compared to “normal” businesses. This is because payment processors account for the increased risk of chargebacks and potential fraud. 

While these fees can eat into profit margins, they are a necessary cost for maintaining reliable payment processing. One way merchants can combat higher fees is by implementing zero-fee credit card processing.

Difficulty in securing merchant accounts

Convincing banks or payment processors to approve a high-risk merchant account can be an uphill battle. Many financial institutions are hesitant to work with businesses in industries known for volatility or regulatory scrutiny. 

Without an account, businesses are left unable to process card payments — essentially cutting off a significant revenue stream. If you’re a Canadian merchant and in a similar position, SecureGlobalPay can help. Reach out to our team for a free consultation. 

Regulatory and compliance hurdles

Canada’s financial regulations add another layer of complexity for high-risk businesses. Key among these are:

• Code of Conduct for the Payment Card Industry in Canada
• Anti-money laundering (AML) requirements 
• Personal Information Protection and Electronic Documents Act (PIPEDA).

Non-compliance with these regulations can lead to fines or account restrictions, making it crucial for high-risk businesses to maintain robust compliance practices.

Why some Canadian businesses may be considered high-risk

Being classified as a high-risk business might sound intimidating, but it’s often a result of industry norms or operational realities rather than your business practices. Many Canadian businesses share the same risk factors as their U.S. counterparts, which can lead to this designation.

Here’s a closer look at the main factors that put businesses in the high-risk category:

• High chargeback ratios: A high frequency of chargebacks is a red flag for any payment processor. Businesses with subscription-based models, trial offers, or digital goods are particularly susceptible. Even if disputes aren’t your fault, the perception of risk is enough for processors to classify your business as high-risk.
• Large transaction volumes: If your business handles significant transaction amounts or operates in industries with high-ticket sales (like luxury goods or travel), processors may view you as high-risk. Large transactions increase the potential financial impact of fraud or disputes.
• Industry-specific risks: Certain industries inherently face more scrutiny due to fraud potential, customer disputes, or regulatory oversight. Examples include adult entertainment, gambling, cryptocurrency, and nutraceuticals. If your business operates in one of these sectors, high-risk classification is common.

With the right payment processor, you can manage these risks while getting access to the tools and support you need to grow. 

Open a Canadian high-risk merchant account with SecureGlobalPay

SecureGlobalPay specializes in high-risk payment processing, making it the ideal partner for Canadian merchants. Here’s what we bring to the table:

• Expertise in high-risk industries: We understand the unique needs, challenges, and regulations of high-risk businesses.
• Competitive rates: While fees for high-risk accounts are higher than standard ones, we work to provide cost-effective options that don’t break the bank.
• Advanced fraud prevention tools: Our high-risk payment gateway protects you from chargebacks and fraudulent transactions with cutting-edge security features.
• Regulatory compliance support: Our team ensures your payment processing meets card network requirements and Canadian financial and data protection regulations.
• Seamless integration: Whether you run a physical store, an online shop, or both, our solutions integrate smoothly with your payment systems.

What you’ll need to apply

To open a high-risk merchant account with SecureGlobalPay, you’ll need to provide some basic documentation and financial records. These typically include:

• A completed merchant application form
• Proof of business registration
• Financial statements or bank statements for the last 3–6 months
• A valid, government-issued ID for the business owner(s)
• Your business’s processing history (if available)

Having these documents ready will streamline the approval process and get you up and running faster.

Take the next step today

Setting up a high-risk merchant account doesn’t have to be complicated. SecureGlobalPay simplifies the process so you can focus on what matters — growing your business.

There are three ways to get started:

1. Go straight to our easy online application form
2. Reach out using a contact form 
3. Call us at 1-805-855-0214 if you prefer to speak with one of our payment experts.

Our team is ready to help you secure the payment processing solutions you need!