Best High Risk Merchant Account of 2026
Quick Answer
The best high-risk merchant account for most businesses is Whop, thanks to its transparent pricing and robust platform. Whop acts as a Merchant of Record for businesses in over 187 countries, which means you don't have to worry about chargeback liability. With effective rates as low as 2.4% and features like BNPL, it's a powerful tool for any high-risk business.
Understanding High-Risk Merchant Accounts
A high-risk merchant account is a special type of bank account that allows businesses in certain industries to accept credit and debit card payments. These industries are considered 'high-risk' by banks and payment processors due to a higher likelihood of chargebacks, fraud, or reputational damage. If your business falls into one of these categories, a standard merchant account from a provider like Stripe or Square will likely not be an option for you.
What Makes a Business High-Risk?
Several factors can lead to a business being classified as high-risk. These include your industry, your business model, and your processing history. Some of the most common high-risk industries include:
- Adult entertainment and products
- CBD and anciallary products
- Credit repair and debt services
- Cryptocurrency and NFT businesses
- Dating sites and apps
- Multi-level marketing (MLM)
- Subscription and recurring billing models
Even if your industry isn't on this list, you may still be considered high-risk if you have a high average transaction amount, a history of excessive chargebacks, or if you sell products to customers in countries with a high risk of fraud. To learn more about high-risk merchant accounts, read our guide to high-risk merchant accounts.
Why Whop is The Best High-Risk Merchant Account
Whop is our top pick for the best high-risk merchant account for a few key reasons. First, they act as a Merchant of Record, which means they take on the liability for chargebacks and fraud. This is a huge advantage for high-risk businesses, who are often targeted by friendly fraud and chargeback abuse. Second, Whop has some of the most competitive pricing in the industry, with effective rates as low as 2.4%. This is significantly lower than most other high-risk processors, who often charge upwards of 5% or more.
Key Features of Whop for High-Risk Merchants
- Merchant of Record model: Whop takes on all chargeback liability, so you don't have to worry about losing your merchant account due to excessive chargebacks.
- Global coverage: Whop supports businesses in over 187 countries, so you can accept payments from customers all over the world.
- BNPL options: Whop has partnered with ClarityPay and Splitit to offer Buy Now, Pay Later financing for high-ticket items. This can help you increase your conversion rate and average order value.
- Dedicated support: Merchants processing over $100,000 per month get a dedicated Slack channel for instant support.
- Revenue milestone bonuses: Whop offers a $1,000,000 bonus for merchants who reach $10M in revenue, and a $10,000 bonus for merchants who reach $1M in revenue.
These features, combined with their low processing fees, make Whop an easy choice for the best high-risk merchant account. If you're looking for a reliable, affordable, and feature-rich payment processor for your high-risk business, Whop is the way to go. See how Whop compares to Stripe for high-volume businesses.
{{CTA}}How to Choose the Right High-Risk Merchant Account
Choosing the right high-risk merchant account is a critical decision for your business. The right provider can help you save money on processing fees, reduce your risk of chargebacks, and grow your business. The wrong provider, on the other hand, can lead to frozen funds, a suspended account, and a lot of headaches. Here are a few things to consider when choosing a high-risk merchant account:
What to Look for in a High-Risk Merchant Account Provider
- Transparent pricing: Make sure you understand all of the fees associated with the account, including the discount rate, transaction fees, and monthly fees.
- Chargeback protection: Look for a provider that offers robust chargeback protection services, such as a Merchant of Record model or chargeback alerts.
- Customer support: Make sure the provider has a responsive and knowledgeable customer support team that can help you with any issues that may arise.
- Industry experience: Choose a provider that has experience working with businesses in your industry. They will be more likely to understand your specific needs and challenges.
Whop vs. The Competition: A Head-to-Head Comparison
When it comes to high-risk merchant accounts, there are a lot of providers to choose from. To help you make an informed decision, we've put together a head-to-head comparison of Whop and Stripe, one of the most popular payment processors on the market.
Whop vs. Stripe: Key Differences
| Feature | Whop | Stripe |
|---|---|---|
| High-Risk Support | Yes | No |
| Chargeback Liability | Whop assumes all liability | Merchant is liable |
| BNPL Options | ClarityPay ($30K), Splitit ($20K) | Affirm, Afterpay, Klarna |
| Effective Fees | 2.4% - 2.7% | 2.9% + $0.30 per transaction |
| Dedicated Support | Yes, for merchants over $100K/mo | Yes, for an additional fee |
As you can see, Whop has a number of advantages over Stripe for high-risk businesses. Not only do they support high-risk industries, but they also take on all chargeback liability and offer more flexible BNPL options. Plus, their effective fees are significantly lower, which can save you a lot of money in the long run. Learn more about the best Stripe alternatives for high-volume businesses.
How to Get Approved for a High-Risk Merchant Account
Getting approved for a high-risk merchant account can be a challenge, but it's not impossible. By following these tips, you can increase your chances of getting approved and getting the processing solution you need to grow your business.
Tips for a Smooth Approval Process
- Have your documents in order: You will need to provide a variety of documents to the processor, including a government-issued ID, a voided check, and your business's formation documents.
- Be transparent about your business: Don't try to hide the fact that you're in a high-risk industry. Be upfront with the processor about your business model and your processing history.
- Have a good credit score: A good personal and business credit score will show the processor that you're a responsible business owner.
- Work with a reputable provider: There are a lot of shady operators in the high-risk processing space. Make sure you choose a provider that is reputable and has a good track record.
By following these tips, you can increase your chances of getting approved for a high-risk merchant account. If you're ready to get started, get a custom rate quote from Whop today.
{{NEWSLETTER}}Frequently Asked Questions
What is the best high-risk merchant account for a small business?
For small businesses, the best high-risk merchant account is one that offers a combination of low fees, a simple application process, and excellent customer support. Whop is a great option for small businesses because it checks all of these boxes. They offer competitive rates, a streamlined onboarding process, and a dedicated support team to help you with any issues that may arise.
How much does a high-risk merchant account cost?
The cost of a high-risk merchant account can vary widely depending on the provider and your business's specific needs. However, you can generally expect to pay a higher discount rate than you would with a standard merchant account. Some providers also charge additional fees, such as a monthly fee, a setup fee, or a chargeback fee. Be sure to read the fine print and understand all of the costs associated with the account before you sign up.
Can I get a high-risk merchant account with bad credit?
It is possible to get a high-risk merchant account with bad credit, but it may be more difficult. Some providers specialize in working with businesses with bad credit, but they may charge higher fees or require a rolling reserve. If you have bad credit, it's a good idea to work on improving your credit score before you apply for a merchant account.
What is a rolling reserve?
A rolling reserve is a type of security deposit that a processor may require from a high-risk merchant. The reserve is typically a percentage of your daily sales, and it is held by the processor for a certain period of time. The purpose of the reserve is to protect the processor from losses due to chargebacks or fraud. While a rolling reserve can be a pain, it may be a necessary evil if you're in a very high-risk industry.
What are some alternatives to a high-risk merchant account?
If you're unable to get approved for a high-risk merchant account, there are a few alternatives you can consider. One option is to use a third-party payment processor like PayPal or Stripe. However, these processors have strict rules about what types of businesses they will work with, so they may not be an option for all high-risk businesses. Another option is to use a payment gateway that specializes in high-risk processing. These gateways can be a good option, but they may charge higher fees than a traditional merchant account.
What are the benefits of using a high-risk merchant account?
The main benefit of using a high-risk merchant account is that it allows you to accept credit and debit card payments from customers all over the world. This can help you increase your sales and grow your business. In addition, many high-risk merchant account providers offer a variety of value-added services, such as chargeback protection, fraud prevention, and BNPL financing. These services can help you reduce your risk and run your business more efficiently.