Home » An Overview of High-Risk Merchant Account Fees and Rates in 2026

High-risk merchants operate in industries that payment processors see as unpredictable or more likely to experience chargebacks, fraud, or regulatory issues. Think CBD, adult content, travel services, subscription boxes, and other sectors where risks (real or perceived) make banks nervous.

As a result, high-risk merchant account fees and rates are higher than those of traditional merchant accounts.

In this article, we’ll break down exactly what kind of fees you can expect when opening a high-risk merchant account, what factors drive those costs, and what you can do to reduce them. 

How risk factors affect pricing

Many industries are automatically flagged as high-risk by payment processors. The “high-risk” categorization is broad because it’s not just about what you sell — it’s also how you sell it.

Here are some common risk factors that can impact the fees you’re charged:

• High chargeback ratios: Processors lose money when customers dispute charges. If your business has frequent chargebacks, expect higher fees and tighter terms.
• Regulatory or legal scrutiny: Industries under government watch (like CBD or supplements) are riskier for banks due to compliance concerns.
• Large ticket sizes or high monthly volume: Bigger dollar amounts mean bigger potential losses. However, this can actually work in your favor, helping you negotiate better payment processing rates.
• Poor or limited processing history: If you’re new or have a rocky track record, you’re seen as a higher risk until you prove otherwise. This means higher fees initially, with a good chance to lower them if you keep chargeback rates low. 
• Subscription or recurring billing models: Long-term billing (e.g., monthly software, memberships) tends to result in more chargebacks, especially if cancellation is unclear or delayed. More chargebacks = higher fees.
• International sales: Cross-border transactions often require currency conversion and are more likely to be flagged for fraud, leading to added scrutiny and higher fees. 

As you can see, any practice or business model that — directly or indirectly — increases your chargeback rates will ultimately lead to higher fees for your high-risk merchant account. That’s why it’s worth putting in extra effort to keep those rates as low as possible.

The breakdown of high-risk merchant account fees

High-risk merchant accounts come with a range of possible fees. Not every provider charges all of them, but it’s important to know what to look out for. Some fees are standard across the board, while others depend on your business model, industry, or risk profile.

1. One-Time/Setup fees

These are usually charged during the onboarding process.

• Application fees: While increasingly rare, some processors charge just to review your application. They can go up to $500.
  Account setup fees: Covers the cost of creating your merchant account. They range from $50 to $300.
• Gateway integration/setup: If you’re using a payment gateway, there may be a one-time cost (typically $50–$250) to get everything connected.

2. Recurring fees

These are ongoing monthly charges that keep your account active.

• Monthly account fees: Sometimes called a “merchant service fee,” this covers account maintenance. Expect to pay somewhere between $10 and $50.
• Annual fees: Ranges from $100 to $500. Often labeled as a “membership/platform fee”  or “compliance & support fee,” this charge can bundle services like PCI support, customer service, fraud tools, and account maintenance. 
• Statement fees: Charges for providing monthly processing reports, usually around $10.
• Gateway fees: If you use a third-party payment gateway (like Authorize.net), expect a monthly fee of $20 to $30.
• PCI compliance fees: Required to keep your business in line with security standards — $50 to $150 annually, or $15 to $25 monthly.
• Monthly minimums: If you don’t hit a set transaction volume, you may be charged the difference.

3. Transaction-based fees

These apply to each sale you process:

• Discount rate: This includes the interchange rate (set by card networks) plus a markup from your provider.
• Per-transaction fees: A flat fee charged for each approved transaction, often $0.10–$0.50.
• Cross-border or currency conversion fees: If you’re processing international payments, these apply. They are somewhere between 1.0% and 3.0% per transaction. 
• Fraud screening fees: Some processors charge additional fees for using their advanced fraud detection tools — $0.05 to $0.25 per transaction or a monthly flat fee of $10 to $30.

4. Risk-related fees

These are tied directly to the risk profile of your business.

• Chargeback fees: You’ll be charged for each chargeback filed, usually $20–$50.
• Rolling reserve requirements: A percentage of your daily or weekly sales is held back (often 5–10%) to cover potential refunds or chargebacks. It’s released after a set period — like 90 or 180 days.
• Early termination fees: If your provider does NOT offer month-to-month terms and you cancel your contract early, you might be hit with a $250 to $500 cancellation fee.

Again, keep in mind that these are just industry averages. Whether you are opening your first high-risk merchant account or switching merchant services providers, request a clear breakdown of their fees and pricing structure. 

Comparison: Traditional vs. high-risk merchant account fees

When it comes to payment processing, high-risk merchants pay more. However, it’s important to note that it’s not a punishment — it’s a means for payment processors to manage the increased risk associated with servicing these merchants.

Below is a quick side-by-side comparison of how fees typically stack up between high-risk and traditional merchant accounts:

Tips for managing and reducing high-risk rates and fees

Just because your business is considered high-risk doesn’t mean you’re stuck with high fees forever. With the right approach, you can lower your costs, protect your revenue, and build better relationships with your payment partners.

Here are some practical ways to manage and reduce your high-risk merchant account fees:

• Work with high-risk specialists: Not all processors understand the needs of high-risk merchants. Partnering with a provider that specializes in your industry can lead to better pricing, fewer restrictions, and more flexible terms.
• Ask about bundled pricing: Some providers offer flat-rate or tiered pricing models that roll multiple fees into one. It can simplify billing and sometimes lower your overall cost — especially if you process a consistent volume.
• Shop around: Other high-risk merchant service providers might offer lower fees. Just make sure you are not also getting poorer service, tools, and support.
• Use chargeback prevention tools: Tools like fraud filters, 3D Secure, and chargeback alerts help you prevent disputes before they happen. The fewer chargebacks you have, the better your negotiating power becomes over time. It pays to invest in chargeback management.
• Maintain PCI compliance: Staying up to date with security standards not only avoids extra fees but also protects you from data breaches and potential fines.
• Negotiate: Rolling reserves and certain processing/monthly fees aren’t always set in stone. After a few solid months of processing, look to negotiate your merchant services rate and agreement.

Open a high-risk merchant account with low fees through SecureGlobalPay

With the right provider, you can get the tools, support, and pricing structure you need to grow — without the constant worry of surprise charges or account shutdowns.

At SecureGlobalPay, we specialize in helping high-risk merchants get approved quickly and keep fees as low as possible. With close to 30 years in this space, we work with a wide range of domestic and offshore banking partners to find the best fit for your business.

Here’s how we help:

• Competitive, transparent pricing (no hidden fees).
• No application or setup fees.
• Customized solutions for your specific industry.
• Advanced fraud and chargeback prevention tools.
• Fast, easy pre-approval process.
• Experienced account managers will monitor your account to catch both issues and cost-saving opportunities for your business.

If you’re tired of getting turned down or paying too much, it’s time to make a move.

👉 Get in touch with our team today or start the application process.