Curious where a lot of the smart money is being invested in fintech these days?
Emerging industries such as CBD, online gambling, crypto, and subscription services are taking off. They all have one thing in common…
Their payment processing gets blocked, restricted and denied by the banks and traditional payment processors.
This leaves businesses rejected by traditional payment processors high and dry when it comes to accepting payments online. Enter high-risk payment processing. If these businesses can’t accept payment, they don’t exist. High-risk payment processing fuels some of the fastest growing industries in the world right now.
And if you’re an investor, you should care about high-risk payment processing. Here’s why.
What you’ll learn:
- Why Emerging Industries Require High-Risk Payment Processing
- What Makes High-Risk Payment Processing Unique?
- Top 5 Highest Rated High-Risk Payment Processors Ranked
- What Investors Should Pay Attention To
Why Emerging Industries Require High-Risk Payment Processing
Here’s the harsh truth…
Big banks and traditional payment processors such as Stripe or PayPal deem certain industries “high-risk”. This results in them refusing to do business with them or allowing them to do business only under strict restrictions and high fees.
Some examples of high-risk industries include:
- Online Gambling & Gaming
- CBD & Cannabis
- Nutraceuticals and Supplements
- Crypto Currency Exchanges
- Adult
- Travel & Ticketing
These are billion dollar industries. Many of the fastest growing in the global economy. But none of them can operate without payment processing. That’s why specialized payment processing for high-risk businesses has become such a huge market. If you have a high-risk business or plan to launch one, you will need a payment processor who specializes in high-risk payments.
Want to know how big of a market we’re talking about?
The global payment processing market size was valued at approximately $62 billion USD in 2024. This is expected to grow by 14.5% each year for the next few years.
A large portion of that growth will be attributed to high-risk payment processing. That’s because so many banks and payment processing companies won’t work with high-risk businesses.
What Makes High-Risk Payment Processing Unique?
High-risk payment processing is its own special niche within the payments world. Let’s break down why…
Regular payment processors take on businesses and industries that are considered low risk. That means they mainly service:
- Low chargeback rates
- Lower likelihood of fraud
- Simple compliance requirements
High-risk payment processing is the exact opposite. These payment processors are equipped to handle:
- High chargeback rates
- High rates of fraud
- Complex compliance standards
Businesses in high-risk industries face extreme challenges when it comes to payment processing.
For starters, according to a recent report, 80% of organizations experienced some sort of payments fraud in 2023. That’s the highest amount since the survey began back in 2018. If you’re running a high-risk business your chances of being a victim of fraud are even greater.
Speaking of fraud, businesses lost $8.9 billion to chargebacks in 2024 alone. High-risk markets such as online gambling and recurring billing are especially susceptible to chargebacks.
Thankfully high-risk payment processors have you covered with:
- Advanced fraud prevention measures
- Proprietary chargeback prevention tools
- Support for multiple currencies
- Flexible underwriting policies
These features are crucial for any high-risk business. Without them, your business is ripe for fraud attacks, huge chargeback fees, and potential account terminations.
Top 5 Highest Rated High-Risk Payment Processors Ranked
There are hundreds of payment processors that claim to service high-risk businesses. But they’re not all created equal. Here are the 5 best high-risk payment processors out there today:
1. 2Accept
When it comes to high-risk payment processing, 2Accept is in a league of their own. They specialize solely in high-risk merchant services and have helped businesses in industries all over the world. They’re known for quick approvals, transparent pricing, and above all great customer service.
2. Durango Merchant Services
Durango has been serving high-risk businesses for decades. They have some of the most competitive rates and work with nearly all high-risk industries. Their customer service is excellent and they have a strong reputation within the high-risk merchant community.
3. PayKickstart
PayKickstart is another great payment processor for high-risk businesses. Where they stand out from the rest is their focus on subscription-based businesses. They have tools built into their platform to help with chargeback protection and recurring billing. If you have a SaaS business or sell digital products, PayKickstart is worth considering.
4. Soar Payments
Soar Payments specializes in helping merchants get approved when other payment processors don’t want to work with them. They have a large network of acquiring banks which allows them to service high-risk businesses all over the world.
5. eMerchantBroker
eMerchantBroker has been around since 1998. They service all kinds of industries that fall under the high-risk umbrella. They even have tools to help prevent chargebacks.
In that order.
They all have their pros and cons. But when it comes to value, industry knowledge, and support for high-risk businesses… 2Accept is the top choice.
What Investors Should Pay Attention To
Here’s the million dollar question…
Why should investors care about high-risk payment processors? As you’ll soon find out, there are quite a few reasons.
High-risk payment processing is a huge market. Yet there are only a handful of businesses out there that solely focus on high-risk payment processing. Investing in high-risk payment processing companies gives you access to a slice of the multi-billion dollar payment processing industry. Additionally, these companies service hundreds of industries that all rely on them to process payments. From online gambling to CBD Oil these industries can’t function without high-risk payment processing companies.
Other things to keep in mind:
- Recurring revenue: Payment processing companies thrive on recurring revenue. This means they make money every time a merchant makes a sale. It’s a win-win for the processors.
- Barriers to entry: Starting a payment processing company from scratch is extremely difficult. Not only do you have to pass PCI Compliance, but the tough part is acquiring banking relationships. High-risk processing companies have already gone through this arduous process. Meaning new competitors won’t be able to enter the market as easily.
If you’re an investor looking for high-risk industries to invest in, keep these payment processing companies near the top of the list.
Wrapping It Up
The world’s fastest growing industries wouldn’t exist without high-risk payment processing. From CBD to online casinos, without payment processing these businesses don’t make any money.
And for businesses in the high-risk space, payment processing isn’t something to skimp on. It’s the foundation your business is built on. Make sure to do the research and find a high-risk payment processor that fits your business needs.
If you’re an investor, high-risk payment processing companies are exactly where you should be putting your money. The demand for high-risk payment processing continues to grow each year, while the competition remains relatively low. Investors who know what they’re doing will try to invest in payment processing companies early on. Before they reach mainstream competition.
Don’t sleep on this opportunity.