Home » How to Open a High Risk Merchant Account

Some businesses are naturally riskier than others — at least in the eyes of banks and payment processors. If you run a high-volume merchant account, sell CBD products, offer travel packages, or operate in industries with high chargeback rates, you’re likely considered a high-risk merchant.

For businesses like yours, getting a standard merchant account can be tough. Even if you manage to open one, there’s always a chance that your payment provider could freeze or shut down your account without warning. 

That’s why high-risk businesses need to know where to look and how to open a high-risk merchant account.

Here are your options for opening a high-risk merchant account

If you run a high-risk business, you can’t just sign up for any payment processor and expect smooth sailing. So what are your options?

There are a few different routes you can take. Some may seem convenient at first, but come with hidden risks. In practice, there is only one reliable long-term solution to accept payments as a high-risk merchant.

1. Try your luck with merchant aggregators

Some businesses start by signing up with a merchant aggregator — a service like PayPal, Stripe, or Square. These platforms allow businesses to accept credit card payments without setting up a dedicated merchant account. 

While this sounds easy, it’s a risky move for high-risk merchants. Here’s why:

• Accounts can be frozen or shut down without warning: Aggregators have strict policies against high-risk businesses. If you get flagged, your account (and your money) could be locked indefinitely.
• Higher fees and transaction limits: Many aggregators charge higher processing fees and may impose limits on how much you can process each month, making them an especially poor choice for merchants processing high monthly volumes.
• Weak fraud or chargeback protection: Aggregators like PayPal and Stripe offer just a basic fraud and chargeback protection. And if you end up having high chargeback rates, they will just shut down your account.

For businesses in high-risk industries, relying on a merchant aggregator is like building on shaky ground. While it may work for a short time, it’s not a long-term solution.

2. Open an account with a standard payment processor

Another option is to apply for a merchant account with a standard payment processor, such as a traditional bank or well-known payment provider. These companies can set you up with a dedicated merchant account.

However, for high-risk merchants, this option still comes with significant downsides:

• Strict approval process: Standard payment processors have strict underwriting guidelines and often reject businesses in high-risk industries outright.
• Account termination risks: Even if you’re approved, your account can still be closed if the processor later decides your business is too risky.
• Higher fees & rolling reserves: If you are accepted, you’ll likely face higher processing fees and may be required to maintain a rolling reserve — meaning a portion of your revenue will be held back as a security measure.

While a standard merchant account is better than a merchant aggregator, it’s still not a great choice for high-risk merchants. If you want stability and reliable payment processing, you’ll need a provider that specializes in high-risk accounts.

3. Look for a high-risk merchant account provider

The best way to accept payments as a high-risk business is to work with a provider like SecureGlobalPay that specializes in high-risk merchant accounts and payment processing. These providers understand the challenges that come with your industry and offer payment solutions tailored to your needs.

For example, here’s what you get if you open a high-risk merchant account with SecureGlobalPay:

• Approval for high-risk businesses: Unlike standard payment processors, we are glad and willing to work with high-risk businesses.
• Stable payment processing: With a dedicated high-risk merchant account, you won’t have to worry about sudden account freezes or terminations.
• Advanced chargeback & fraud prevention: High-risk processors offer tools to help manage chargebacks, detect fraud, and keep your business compliant with industry regulations.
• High-risk payment gateway: You get access to a powerful, secure gateway that can handle high volumes, use multiple merchant accounts, and integrate with hundreds of different tools, eCommerce platforms, and shopping carts.  
• Flexible pricing & terms: While high-risk accounts come with slightly higher fees, we can offer more transparent pricing and fairer contract terms than standard processors or aggregators.

If you want to accept payments without constantly worrying about disruptions, a high-risk merchant account provider is the way to go.

Steps for opening a high-risk merchant account

Opening a high-risk merchant account often requires more documentation compared to opening a standard retail account. The good news? If you’re prepared, the process can still be smooth and straightforward.

1. Find a suitable high-risk merchant account provider

Not all payment processors are equipped to handle high-risk businesses. You will want someone who has experience in your industry, boasts a good track record, and isn’t there to rip you off.

If you are trying to decide between different providers, use the checklist we provide below.  

Choosing the right provider can make a huge difference in how smoothly your payments are processed and how quickly your potential processing issues get solved. 

2. Gather necessary documentation

During the application process, you’ll need to provide various business information. 

High-risk providers need to conduct a more thorough review process than standard payment processors, so having the right documents ready will speed up approval and help you secure better terms.

Here are the basic requirements:

• You’ll need a valid business bank account to receive payments.
• Incorporation documents and shareholder certificates that prove your business is legally registered.
• Some industries require specific business licenses for operation.
• The last 3–6 months of your bank or credit card processing statements (if applicable).
• Live and functional business website that includes clear terms of service and refund policies.
• Copies of passports or government-issued IDs for business owners and major shareholders.
• Some providers require proof of your business’s physical location. Utility bills are often used for address verification.

Additional documents that might be required:

• Startups with no processing history will usually be asked to provide their business plan.
• Most recent tax returns and financial statements may be required for larger businesses.
• Details about your business structure — whether it is a DBA, partnership, or corporation.
• If you operate as a nonprofit, you may need 501(c)(3) documentation to confirm your nonprofit status.

We use this information to evaluate your risk level and determine your processing limits, fees, and contract terms. The more complete and transparent your application, the better your chances of getting approved with favorable conditions.

3. Submit your online application and wait for approval

Many high-risk merchant services providers offer online applications. Here’s how our form looks:

You just need to fill out the form and upload required documentation.

The provider’s underwriting team will evaluate your business’s risk level, financial stability, and processing history before approving your account. If anything is missing, an account representative will contact you to request more details.

How long does the approval take?

While you might have heard otherwise, instant approval for a high-risk merchant account is not a thing. Realistically, approval times range from five days to a couple of weeks, depending on your business type and how quickly you provide the required information.

4. Set up your equipment and gateway and start processing payments

Once your high-risk merchant account is approved, you’re almost ready to start accepting payments. But first, you need to set up your payment processing system. 

Here’s what that entails:

• Set up your payment gateway: If you’re processing online payments, your provider will give you access to a payment gateway. This gateway must be integrated with your website, shopping cart, or eCommerce platform (such as WooCommerce). 
• Configure fraud and chargeback protection tools: Many high-risk merchant providers offer fraud prevention features, like address verification, 3D Secure authentication, and chargeback alerts. Setting these up can help protect your account.
• Install and test your equipment: If you operate a physical business, you may need to set up POS terminals, card readers, or mobile payment solutions. Ensure everything is configured properly and test a few transactions.

The only thing left is to start accepting payments!

A reliable high-risk merchant account provider will offer ongoing support to help with any technical or compliance issues. If you run into any problems, don’t hesitate to contact your provider’s support team.

Open a high-risk merchant account online with SecureGlobalPay

Finding a reliable payment processor can be a challenge for high-risk businesses. SecureGlobalPay specializes in high-risk merchant accounts, offering customized payment solutions for businesses in industries that traditional processors often reject.

Why choose SecureGlobalPay?

• Expertise in High-Risk Industries: We understand the unique challenges your business faces and offer tailored solutions to keep your payments running without disruption.
• Flexible & competitive pricing: Transparent pricing with no hidden fees and flexible contract terms to suit your business needs.
• Advanced fraud & chargeback protection: Tools to help reduce chargebacks, prevent fraud, and keep your account in good standing.
• Seamless integration: Our payment gateway works with tools like QuickBooks, SAP, Kount, and dozens of eCommerce and recurring billing platforms.
• Fast & secure application process: Apply online, submit your documents, and get your account set up in no time.

💳 Ready to get started? Contact SecureGlobalPay today or submit your application online to open a high-risk merchant account and start processing payments with confidence.