How to Open a High Risk Merchant Account
If you’re running a business in crypto, forex, gaming, CBD, adult entertainment, or even online travel—sooner or later you’ll run into the dreaded high-risk classification. Banks and acquirers often see your business as riskier than the average e-commerce shop, which means one thing: you’ll need a high risk merchant account.
This isn’t just another bank account. High risk merchant accounts are tailored for industries prone to higher chargebacks, fraud, or regulatory scrutiny. In 2025, with compliance tightening globally, choosing the right high risk merchant account providers is one of the most crucial business decisions you’ll make.
The challenge most founders face isn’t just higher fees—it’s getting approved in the first place. Banks and acquirers often reject high-risk applications simply because the documentation isn’t airtight, or because the business applied to the wrong institution for its profile.
This is where Binderr Concierge steps in. Instead of leaving you to figure out the maze of providers.
High Risk Merchant Account - Instant Approvals
- Top Providers – We work only with the best high risk merchant account providers, saving you from dead ends.
- Smart Matching – Your business profile is paired with acquirers who understand your sector— crypto, forex, gaming, CBD, travel, and more.
- High Risk Bank Accounts – Secure dedicated banking solutions that work seamlessly with your merchant account, even for offshore entities.
- Company Formation – From free zones in Dubai to offshore jurisdictions, we set up your business where approvals are most likely.
- High Risk Payment Gateway– We help integrate the right gateway and negotiate better processing rates for your industry.
- Bundled Services – Merchant account + banking + formation + compliance in one transparent package.
- Fast Approvals – Pre-screening means quicker approvals and onboarding
In this long-read guide, we’ll walk you through how to open a high risk merchant account, what documentation you’ll need, the costs involved, and how to increase your chances of getting high-risk merchant account instant approval.
What is a High-Risk Merchant Account?
A high risk merchant account is a specialised payment processing account designed for businesses that face greater financial, regulatory, or reputational risks. It enables these companies to accept credit and debit card payments while giving banks and acquirers additional safeguards against fraud, chargebacks, and compliance breaches.
Unlike standard merchant accounts, high risk merchant accounts come with stricter underwriting, rolling reserves, and higher fees—but they are essential for industries where traditional processors often refuse service.
Why are businesses classified as high-risk?
Banks and high risk merchant account providers typically categorise a business as high-risk if it:
- Operates in industries with historically high chargeback ratios (e.g. forex, gaming, travel).
- Falls under regulatory uncertainty (crypto exchanges, CBD, online pharmacies).
- Manages international operations with frequent cross-border payments.
- Is a startup or has limited financial and processing history.
- Handles large transaction values or recurring billing models (subscriptions, memberships).
In short, if your company falls into one of these categories, you’ll likely need to work with high-risk merchant account providers rather than standard banks to ensure reliable payment processing.
Why Do You Need a High-Risk Merchant Account?
If your business falls into a high-risk category, a standard merchant account simply won’t cut it. Without a high risk merchant account, you risk payment interruptions, frozen funds, and constant rejections from traditional providers.
With a dedicated high risk merchant account, you can:
- Accept Visa, Mastercard, Amex, and other major card payments.
- Process international and cross-border transactions securely.
- Reduce fraud and chargebacks with advanced monitoring tools.
- Scale your operations in high-risk industries without sudden account shutdowns.
For example, crypto exchanges and online casinos frequently face freezes when using mainstream providers like PayPal or Stripe. By working with trusted high risk merchant account providers, you gain stability, compliance, and the ability to grow without fear of losing your payment channels.
Binderr Makes It Simple
- Connects you with the top high risk merchant account providers
- Sets up your high risk bank account for smooth settlements
- Handles offshore or free zone company formation if needed
- Prepares compliance and KYC/AML documentation to cut rejections
- Integrates secure payment gateways for your website or app
- Helps you scale globally without frozen funds or account shutdowns
Step-by-Step Guide to Opening a High-Risk Merchant Account
Opening a high risk merchant account isn’t as simple as filling out an online form. Banks and high risk merchant account providers follow strict underwriting processes, and the difference between approval and rejection often comes down to preparation. To boost your chances of success—and even secure high-risk merchant account instant approval—you need to follow a structured approach.
Let’s break it down step by step.
Step 1 — Assess Your Risk Profile
The first step in learning how to open a high risk merchant account is to accurately assess your business risk profile. This isn’t about ticking a few boxes—it’s about building a clear picture of how banks and high risk merchant account providers will view your company.
Before you apply, ask yourself:
- Industry classification – Are you operating in sectors that acquirers typically consider high risk, such as crypto exchanges, forex trading, online gaming, adult services, CBD, or nutraceuticals? These industries often trigger enhanced due diligence.
- Business model – Do you rely on subscription billing, high-ticket transactions, or international cross-border sales? These models are more prone to disputes and chargebacks.
- Chargeback history – What’s your current or projected chargeback ratio? Most providers set a threshold (usually under 1% of total transactions). Anything above this signals risk.
- Regulatory exposure – Are you in a heavily regulated sector (like iGaming or financial services) where additional licensing and compliance are mandatory?
- Financial background – Are you a startup with limited history, or an established business with stable banking and audited accounts? Providers will look at both capital reserves and past stability.
Why does this matter? Because banks and acquirers don’t all treat risk equally. Some high risk merchant account providers specialise in crypto, while others are more comfortable with travel or forex. By knowing your exact profile, you can target the right providers instead of wasting months on inevitable rejections.
In fact, a well-prepared risk assessment not only helps you choose the right partners but also boosts your chances of high-risk merchant account instant approval, since underwriters see that you’ve anticipated their concerns.
Step 2 — Choose the Right Payment Processor or Acquirer
Once you know your risk profile, the next step in how to open a high risk merchant account is choosing the right partner. Not every bank or PSP (Payment Service Provider) is willing to work with high-risk industries. In fact, applying to the wrong provider is one of the fastest ways to get rejected.
When comparing high risk merchant account providers, look for:
- Industry experience – Acquiring banks and PSPs that already serve crypto, forex, iGaming, CBD, or travel merchants.
- Chargeback management tools – Providers that offer proactive fraud prevention and dispute resolution systems.
- Multi-currency support – Essential if you plan to accept payments in USD, EUR, GBP, AED, or other currencies.
- Cross-border processing – Ensure your provider supports international card schemes and alternative payment methods.
- Licensing and credibility – Always check whether the PSP or acquirer is regulated in reputable jurisdictions.
Examples of matching providers to industries:
- Crypto exchanges → specialised PSPs regulated in Europe, the UK, or the UAE.
- Forex brokers → acquirers with FCA (UK) or CySEC (Cyprus) partnerships.
- iGaming operators → processors with proven gambling licence integrations.
Choosing the right partner not only increases your approval chances but also opens the door to high-risk merchant account instant approval when you’re fully prepared.
Step 3 — Prepare Your Documentation
Documentation is the backbone of any high risk merchant account application. Banks and PSPs will scrutinise every detail, and incomplete submissions are one of the main reasons applications are rejected.
Typically required documents include:
- Company formation documents (Certificate of Incorporation, Memorandum & Articles of Association).
- Valid business licences (mandatory for regulated industries such as crypto, forex, or iGaming).
- Recent bank statements (last 3–6 months).
- Financial projections and business plan to demonstrate stability and growth potential.
- KYC/AML policies showing how you prevent fraud and meet compliance obligations.
- Website compliance documents including Terms & Conditions, Privacy Policy, Refund Policy, and AML/Responsible Gaming Policy (where applicable).
Pro tip: Poorly drafted or missing policies are one of the top reasons high-risk merchants face rejection. If in doubt, use compliance consultants to prepare documentation tailored to your industry.
Step 4 — Optimise Your Website and Compliance Setup
Before granting a high risk merchant account, acquirers will always review your online presence. Your website is often the first impression—and if it looks sloppy or non-compliant, your application won’t even get considered.
To pass underwriting checks, make sure your website:
- Clearly displays contact details, company info, and customer support channels.
- Publishes transparent refund, cancellation, and privacy policies.
- Uses SSL certificates and secure payment processing.
- Implements anti-fraud tools and KYC verification systems if your business involves customer onboarding.
- Provides licence and regulatory information if operating in a regulated industry like iGaming or crypto.
Remember: if your website looks like a quick cash grab, providers will reject your application immediately. A professional, compliant, and user-friendly website can make the difference between approval and denial from top high risk merchant account providers.
Step 5 — Submit Your Application
Once your documents are in order and your website is fully compliant, it’s time to formally apply for a high risk merchant account. This can be done either through a PSP (Payment Service Provider) or directly with an acquiring bank.
Your application typically includes:
- Full business profile – Detailing your industry, products/services, and target markets.
- Financial history – Past processing statements, audited accounts, or revenue records.
- Compliance documentation – Proof of licences, AML/KYC policies, refund policies, and website terms.
At this stage, the provider will run a pre-screening check. The stronger and cleaner your submission, the faster you can move toward high-risk merchant account instant approval. A sloppy or incomplete file, on the other hand, is an almost guaranteed rejection.
Step 6 — Underwriting & Risk Assessment
Underwriting is the heart of the approval process for high risk merchant accounts. This is where banks and acquirers decide whether to take you on as a client.
During underwriting, providers carefully review:
- Chargeback history – If your business has a chargeback ratio above 1%, it may raise red flags.
- Financial stability – Liquidity, cash reserves, and projected revenues are examined.
- Director/shareholder background – Underwriters check for any history of fraud, bankruptcy, or regulatory violations.
- Fraud prevention systems – Strong KYC, AML, and transaction monitoring processes increase approval chances.
Some high risk merchant account providers may also impose rolling reserves, holding back 5–15% of your monthly revenue for 6–12 months as security against potential chargebacks. While not always welcome, rolling reserves are standard in high-risk industries and a sign that the provider is willing to work with your business despite elevated risk.
Pro tip: A transparent, well-documented application can not only reduce reserves but also help you negotiate better transaction fees from your provider.
Step 7 — Account Approval and Integration
If your application and underwriting checks are successful, congratulations—you’ve secured your high risk merchant account. This final stage is all about getting you live and ready to accept payments.
Here’s what happens next:
- Merchant Identification Number (MID) – You’ll be issued a unique MID that identifies your business within the card networks. This is the key to processing card payments under your new account.
- Payment gateway setup – Your chosen PSP or acquiring bank will integrate a secure payment gateway into your website, app, or e-commerce platform. This allows you to accept Visa, Mastercard, Amex, and other global payment methods.
- Test transactions – Before going live, providers run test transactions to ensure the gateway is fully functional, secure, and compliant with industry standards.
- Go live – Once tests are complete, your business is officially ready to accept payments through a fully operational high risk merchant account.
At this stage, your business is no longer at the mercy of mainstream processors that freeze accounts in high-risk industries. By working with experienced high risk merchant account providers, you’ve built a compliant, scalable payments infrastructure that supports your growth.
High Risk Merchant Accounts - Fast Approvals and Setup
Getting a high risk merchant account means tackling risk assessments, compliance hurdles, offshore structures, and banking approvals—all while avoiding endless rejections. Binderr takes this burden off your shoulders.
- Smart Matching – We find and connect you with the top high risk merchant account providers for your industry.
- Banking Support – We set up your dedicated high risk bank account, aligned with your settlement and compliance needs.
- Company Formation – Need an offshore or free zone entity? We handle your full setup in trusted jurisdictions like Dubai, Cyprus, Malta, or Jersey.
- Payment Gateways – We integrate secure payment gateways and processing for your website, app, or platform—so you can start accepting payments instantly.
- Bundled Services – Merchant account, banking, compliance, and company formation—delivered as one transparent package.
Binderr does the heavy lifting—so you don’t waste months chasing approvals. You get a ready-to-run setup, from bank account to merchant account, payment processing, and offshore formation, all in one.
Costs of a High-Risk Merchant Account
Here’s what to expect (average ranges, varies by industry & provider):
| Cost Component | Standard Merchant Account | High-Risk Merchant Account |
|---|---|---|
| Setup Fee | $0–$500 | $500–$2,500 |
| Monthly Fee | $10–$30 | $50–$200 |
| Transaction Fee | 1.5%–3% | 4%–8% |
| Chargeback Fee | $15–$25 | $25–$75 |
| Rolling Reserve | None | 5%–15% (held 6–12 months) |
High-Risk Bank Accounts and Offshore Entities
Securing a high risk merchant account often goes hand-in-hand with opening a high-risk business bank account. Without a stable banking partner, your merchant account approval can stall—or worse, collapse entirely. Banks are just as cautious as acquirers when it comes to high-risk industries like crypto, forex, gaming, CBD, and adult services.
Why You Need a High-Risk Bank Account
- Transaction Settlement – Your merchant account deposits must flow into a dedicated business bank account. Without this, your PSP cannot settle funds.
- Risk Screening – Banks run the same rigorous KYC/AML checks as acquirers. A mismatch between your merchant account and banking setup is a fast track to rejection.
- Multi-Currency Needs – High-risk industries are usually global. A strong high-risk business bank account should support USD, EUR, GBP, AED, and more to reduce FX costs.
Offshore Entities
Many businesses in high-risk sectors incorporate offshore or international entities for flexibility, privacy, and tax optimisation. Popular jurisdictions include Cyprus, Malta, Seychelles, BVI, and the UAE free zones.
But here’s the catch: not all banks or high risk merchant account providers accept offshore companies, especially if:
- The jurisdiction is poorly regulated.
- The company lacks substance (no physical office, no staff).
- The industry itself is flagged as very high-risk (e.g. unlicensed crypto exchange).
How to make it work:
- Choose respected offshore jurisdictions with strong regulatory reputations.
- Ensure your offshore entity has proper governance and documentation (shareholder registry, tax filings, audited accounts if possible).
- Work with high risk merchant account providers that specifically accept offshore structures—many will also help connect you to compatible banking partners.
How Binderr Helps with High-Risk Bank Accounts & Offshore Company Formation
Securing both a high risk merchant account and a compatible bank account is where most businesses stumble—especially if you’re dealing with offshore entities. Binderr makes this process seamless.
- Top Offshore Destinations – We handle company formation in trusted high-risk jurisdictions like Dubai, Cyprus, Malta, Jersey, Seychelles, and BVI.
- Smart Bank Matching – We work only with banks whose risk appetite matches your business profile, cutting down on costly rejections.
- Fast Company Formation – Offshore and free zone setups are streamlined, so you can move from registration to banking faster.
- Integrated Banking + Merchant Accounts – We don’t just set up your entity—we align it with the right high risk merchant account providers and bank accounts for smooth settlements.
- Multi-Currency Support – From USD and EUR to GBP and AED, Binderr ensures your high-risk bank account is built for global operations.
- Compliance-First Setup – Our documentation and governance support strengthens your profile for both banks and acquirers.
Industries That Commonly Require High-Risk Merchant Accounts
Not every business needs a high risk merchant account, but for certain industries, it’s unavoidable. Banks and acquirers consider these sectors higher risk due to elevated chargebacks, fraud exposure, and regulatory uncertainty. If you’re in one of these industries, working with specialist high risk merchant account providers is the only way to get reliable approval.
- Crypto Exchanges and Wallets
Cryptocurrency platforms face complex regulations, AML requirements, and high fraud risks. A standard account won’t survive long here—only a high risk merchant account can ensure continuity. - Online Gambling & iGaming
Casinos, sports betting, and iGaming platforms are tightly regulated and prone to high transaction volumes and disputes, making them classic high-risk industries. - Forex and CFD Trading
Foreign exchange and contracts-for-difference (CFDs) involve speculative trading, which attracts regulatory scrutiny and high chargeback ratios. - Adult Content and Dating
Adult entertainment and online dating sites often face reputational and compliance hurdles with mainstream processors. Specialist high risk merchant account providers are a must. - CBD and Nutraceuticals
CBD, hemp, and alternative health supplements face regulatory uncertainty in many regions, which makes traditional banks avoid them. - Travel Agencies and Ticketing
High-ticket sales, advance bookings, and cancellations make travel agencies more vulnerable to chargebacks. A high risk merchant account reduces disruption. - Multi-Level Marketing (MLM)
Network marketing and direct sales models are often flagged for regulatory and reputational risks, requiring tailored payment solutions. - Subscription-Based Platforms
Recurring billing increases the likelihood of chargebacks, especially when customers forget about auto-renewals.
Common Challenges and How to Overcome Them
Opening and maintaining a high risk merchant account comes with unique challenges. Understanding them in advance—and knowing how to address them—can save you from costly delays or disruptions.
High Fees & Rolling Reserves
Unlike standard merchant accounts, high risk merchant accounts usually involve higher costs. Expect processing fees of 4%–8% per transaction, along with rolling reserves of 5–15% of revenue, held for 6–12 months as security.
How to overcome it: Negotiate based on your company’s financial stability, past processing history, and projected volumes. The stronger your profile, the better leverage you’ll have when working with high risk merchant account providers.
Chargebacks
Chargebacks are one of the biggest risks in high-risk industries such as forex, gaming, or crypto. A high ratio not only eats into your profits but can also result in account termination.
How to overcome it: Deploy chargeback alerts, fraud scoring, and strong customer verification systems. Clear refund and cancellation policies on your website also help reduce disputes. Many high risk merchant account providers offer integrated chargeback management tools—use them.
Rejected Applications
A common mistake is shotgun-applying to every provider you can find. The result? Multiple rejections, which get logged and reduce your credibility with future underwriters.
How to overcome it: Work only with high risk merchant account providers that have experience in your specific industry. Pre-screening your profile before applying increases approval chances and may even lead to high-risk merchant account instant approval with the right partners.
Bottom Line
Opening a high risk merchant account isn’t a walk in the park—it’s a compliance-heavy, often frustrating process filled with hidden hurdles. High fees, rolling reserves, rejected applications, strict KYC, and bank account rejections are all part of the landscape. But here’s the truth: if you’re in industries like crypto, forex, iGaming, CBD, or travel, this is the gateway you need to scale your business and access global payments.
The difference between success and failure lies in preparation and choosing the right partners. Tighten your documentation, strengthen compliance, and work only with high risk merchant account providers who truly understand your industry. Most high-risk businesses face multiple knockbacks before landing approval—so persistence, strategy, and expert guidance are key.
And remember: while the fees and reserves may sting, they’re the price of entry to a secure, scalable, and future-proof payment solution. Done right, a high risk merchant account is not a headache but your most powerful growth engine.
That’s where Binderr makes the difference. Instead of leaving you to struggle with complex compliance and scattered providers, we handle the entire process from end to end. We connect you with the best high risk merchant account providers, set up your dedicated high risk bank account, and even form your company in offshore or free zone jurisdictions like Dubai, Cyprus, Malta, or Jersey if needed. We integrate secure payment gateways for your website or app, optimise your processing fees, and deliver everything in one bundled, transparent solution.
With Binderr, you don’t just get a merchant account—you get a complete payments and banking infrastructure designed for high-risk industries. Fast onboarding, lower rejection rates, and long-term stability mean you can focus on growing your business, while we take care of the heavy lifting.