How Much Does a High-Risk Merchant Account Cost?
Blended pricing starts at 2.9% per transaction, and interchange-plus is priced to your business. On top of the rate, expect a monthly fee between $15 and $99, a gateway fee between $15 and $50, and a per-transaction fee between $0.05 and $0.30. There is no application fee and no setup fee, and we do not charge a PCI compliance fee. Below is the full picture, including the parts most processors leave out until you are already signing.
The two pricing models
There are two ways your rate gets built, and which one you get depends on your industry, your processing history, and your finances.
Blended. One rate covers everything. It starts at 2.9% and goes up from there depending on risk. It is simpler to read on a statement, and it is usually where newer businesses and higher-risk categories land.
Interchange-plus. You pay the card network's actual cost plus a fixed markup. It is more transparent, and for established merchants with real volume it is normally cheaper. There is no rate card for this. It is quoted to your business.
Anyone who quotes you a firm rate before looking at your processing history is guessing, and the number will change at underwriting.
The fees you will actually see
Here is every recurring fee on a standard account:
- Monthly fee — $15 to $99, depending on the account
- Gateway fee — $15 to $50 per month
- Per-transaction fee — $0.05 to $0.30
- Processing fee — the rate itself, tailored to your business
And here is what we do not charge:
- No application fee
- No setup fee
- No PCI compliance fee — a lot of processors bill $99 to $199 a year for this, and we do not
There are other incidental fees that come up on some accounts, mostly tied to disputes and unusual activity. Ask your rep for the full schedule before you sign anything. If a processor will not give it to you in writing, that tells you something.
What moves your rate up or down
Three things, in roughly this order:
- Your industry. The category sets the floor. CBD, firearms, nutraceuticals and continuity billing all price differently because the banks price them differently.
- Your processing history. Clean statements from a prior processor are the single best thing you can bring to underwriting. No history means less to price against, and that costs you.
- Your chargeback ratio. Under 1% keeps you in normal territory. Above it, your rate goes up and your reserve gets bigger.
Volume matters too, but less than people expect. A clean $80,000 a month is priced better than a messy $300,000.
Reserves
Some high-risk accounts carry a reserve, which is a percentage of your processing the bank holds back to cover future refunds and disputes. Whether you need one is specific to your business.
When a reserve applies, it is typically 5% to 10% with a cap, and it is eligible for review and release every 30 days. It is not gone. It is held, reviewed on a schedule, and released as you build history.
Anyone who tells you high-risk accounts never carry reserves is selling you something.
Equipment
Merchants buy their own terminals. We work with all the major brands and can get you competitive pricing, but there are hundreds of models and no single price to quote.
Worth saying plainly: we are primarily an ecommerce processor. Retail placements are a small part of what we do. If your business is card-present first, tell us up front and we will be straight with you about whether we are the right fit.
Contract terms, including the unflattering parts
This is the section most processors bury, so here it is directly:
- Term: merchant agreements run three years
- Cancellation: a completed cancellation form and 30 days' notice
- Early termination fee: $295 to $595, depending on the agreement
We would rather you read that now than discover it in year two. If a three-year term does not work for your business, say so before you sign and we will tell you honestly whether there is anything we can do.
What you need to get quoted
Three documents get you a real number instead of a guess:
- A driver's license
- A voided check
- Proof of your EIN
Some industries need more depending on the vertical, but those three are required on every account. With complete information, approval usually takes about 48 hours. Missing documents are the single most common reason it takes longer.
Is it worth it?
If a mainstream processor will approve you and keep you, use them. They are cheaper, and I will tell any business that.
The reason to pay high-risk pricing is that your account gets underwritten by a bank that agreed to carry your category before you ran your first transaction. That is what you are buying. Not a lower rate, a stable account that does not disappear when someone notices what you sell.
Frequently asked questions
- How much does a high-risk merchant account cost?
- Blended pricing starts at 2.9% per transaction, and interchange-plus is priced to your business rather than off a rate card. On top of the rate you should expect a monthly fee between $15 and $99, a gateway fee between $15 and $50, and a per-transaction fee between $0.05 and $0.30. There is no application fee, no setup fee, and we do not charge a PCI compliance fee.
- Why are high-risk processing rates higher than Stripe or Square?
- Because someone is actually underwriting your business. Aggregators put you on a shared account with no real review, which is why signup takes four minutes and why they can freeze you without warning. A high-risk account is underwritten up front by a bank that has agreed to carry your category, and that willingness to hold the risk is what you are paying for.
- Is there a contract or an early termination fee?
- Yes to both, and you should know before you sign. Merchant agreements run a three-year term, cancellation requires a completed cancellation form and 30 days' notice, and early termination fees run between $295 and $595 depending on the agreement. There is no application or setup fee to open the account.