High-Risk Merchant Accounts UK (2026): Providers, Fees & Approval Guide
Get a high risk merchant account today. We specialise in high risk whether you’re in gaming, gambling, vaping, adult, or anything in between.
We work with 25+ acquirers from around the world so we’re certain we can find a solution for you.
Get in touch for your quote today.
Table of Contents
High Risk Industries
Secure payment solutions for Adult businesses including Online, shops, clubs & more.
Reliable processing for retailers & warranty businesses.
Reliable solutions for CBD products.
High Risk Merchant Accounts UK Explained
High-risk merchant accounts are specialised payment solutions designed for businesses that are considered higher risk by banks and payment providers. This can include industries with elevated chargeback rates, regulatory complexity or non-standard business models.
In the UK, many high-risk businesses struggle to secure payment processing through traditional high street banks, which often decline applications due to increased financial and compliance risk. While some industries such as gambling, adult services and vape retail are clearly classified as high risk, others such as travel, furniture and subscription-based services may not realise they fall into this category.
As a result, many businesses either face rejection or end up paying higher fees without fully understanding why. Working with specialist providers is essential to ensure reliable payment processing, competitive rates and long-term account stability.
In this guide, we explain what makes a business high risk, how high-risk merchant accounts work, and what to expect in terms of approval, fees and compliance requirements. Whether you have been declined by mainstream providers or are looking for a more suitable payment solution, this guide will help you understand your options.
What Is a High Risk Merchant Account?
A high risk merchant account is a specialised payment processing facility designed for businesses that most banks and payment processors view as higher risk. This is often assigned based on a variety of factors such as including a high likelihood of chargebacks, industry specific regulatory requirements, subscription billing models as well as large average transaction values, or international sales activities as well as less processing secure payment methods.
Holding a high risk merchant account allows businesses to accept credit card, debit card and alternative payments, while also incorporating fraud protection, chargeback mitigation and compliance support.
What Is Considered a High Risk Business?
A business is generally classified as high risk when it presents an increased likelihood of chargebacks, fraud, or regulatory scrutiny. Payment providers use this classification to evaluate the level of risk associated with processing transactions and to determine appropriate terms, fees, and approval criteria.
While certain sectors are widely recognised as high risk, many businesses are unaware of their classification until they apply for a merchant account or encounter elevated processing fees. Some of the most common high-risk industries include:
- Adult services and subscription-based platforms
- Gambling, betting, and gaming services
- Vape, tobacco, and CBD products
- Pharmaceuticals and online healthcare providers
- Travel, ticketing, and event services
- Financial services, including forex and cryptocurrency
- Subscription-based businesses and SaaS providers
- Furniture, warranties, and insurance services
This is not an exhaustive list, as each acquiring bank applies its own risk criteria. However, it provides a strong indication of the industries most frequently categorised as high risk.
Full List of High-Risk Industries
The following industries are commonly classified as high risk by payment providers due to factors such as chargebacks, fraud risk, and regulatory requirements:
| Category | Industries |
|---|---|
| Financial Services & Lending | Credit repair, debt support, debt collection, lending, merchant services, payday loans, money transfer, remittance services, forex, cryptocurrency, investment schemes, PPI-related services |
| Regulated & Restricted Products | Alcohol, CBD products, cannabis-related goods, medication and prescriptions, tobacco products, e-cigarettes, nutraceuticals and supplements |
| Adult, Gaming & Entertainment | Adult services, dating platforms, escort services, gambling, betting, online gaming, nightclubs, bars, entertainment venues |
| Travel & Events | Airlines, travel agencies, tourism services, accommodation providers, ticketing, events, timeshares, holiday clubs |
| Digital & Online Services | Affiliate marketing, advertising services, digital wallets, e-money services, file sharing platforms, software downloads, digital products, hosting services, ISPs, VPN providers, web development, technical support |
| Retail & Consumer Goods | Jewellery, watches, fashion accessories, health and wellness products, vehicle sales, automotive parts |
| Business Models | Direct sales, multi-level marketing (MLM), pyramid schemes, online auction platforms |
| Other High-Risk Sectors | Charities, non-profits, tattoo studios, body art services, prepaid calling cards |
What Is The Process Of Getting a High Risk Merchant Account?
Setting up a high risk merchant account alongside a business bank account typically involves a more detailed application process than standard accounts. Below is an overview of what to expect:
To begin, you’ll need to submit a business application. It’s important to provide as much detail as possible, including key information such as your business model, projected or current turnover, how you intend to accept payments, your target customer base, and the countries you will operate in. You should also include any existing contracts related to your transactions, as well as previous processing history if available.
If your business has previously been declined by other payment providers or banks, it’s best to be transparent and explain the reasons why. This helps ensure the right providers are approached from the outset, saving time and improving your chances of approval. Once your application has been submitted, you will be required to provide KYC (Know Your Customer) documentation. This typically includes:
- Proof of identity for directors and shareholders holding 25% or more
- Proof of your business trading address
- Business bank account details
- Previous processing statements (if applicable)
- Company registration documents
- Relevant licences if you operate in a regulated industry
After submitting your documentation, your application will be passed to the acquiring bank for underwriting. At this stage, the bank will review your business in detail, including creditworthiness, risk profile, and operational structure. It’s common for additional questions or document requests to arise during this process, so responding promptly can help avoid delays.
Once approved, your merchant account will be set up and, where required, you’ll be given access to a payment gateway. At the same time, your business bank account will be established to receive settlement funds. From this point, you’ll be ready to start accepting card payments from your customers.
What Are the Differences Between High Risk & Low Risk Merchant Account?
Payment providers use their own criteria to determine whether a business is classified as high risk or low risk. While the exact requirements may vary between providers and acquiring banks, most follow similar principles when assessing risk levels. A low-risk merchant is typically characterised by the following:
- Operating in a single currency
- Selling low-risk goods such as clothing, books, or household items
- Having an established trading history over several years
- Generating monthly revenue below £15,000
- Maintaining an average transaction value under £50
- Keeping chargebacks at a minimal or zero level
- Using 3D Secure or similar fraud prevention tools
In contrast, a high-risk merchant will often display one or more of the following characteristics:
- Accepting payments in multiple currencies
- Being a new or recently established business
- Operating within industries associated with higher risk (e.g. adult services or debt collection)
- Having a weaker credit profile or signs of financial instability
- Experiencing higher chargeback ratios or increased fraud activity
- Generating monthly revenue exceeding £15,000
- Processing higher average transaction values (typically above £50)
Payment providers use their own criteria to determine whether a business is classified as high risk or low risk. While the exact requirements may vary between providers and acquiring banks, most follow similar principles when assessing risk levels. A low-risk merchant is typically characterised by the following:- Operating in a single currency
- Selling low-risk goods such as clothing, books, or household items
- Having an established trading history over several years
- Generating monthly revenue below £15,000
- Maintaining an average transaction value under £50
- Keeping chargebacks at a minimal or zero level
- Using 3D Secure or similar fraud prevention tools
In contrast, a high-risk merchant will often display one or more of the following characteristics:
- Accepting payments in multiple currencies
- Being a new or recently established business
- Operating within industries associated with higher risk (e.g. adult services or debt collection)
- Having a weaker credit profile or signs of financial instability
- Experiencing higher chargeback ratios or increased fraud activity
- Generating monthly revenue exceeding £15,000
- Processing higher average transaction values (typically above £50)
Fees For High Risk Payments
Chargeback Fees
Should a chargeback occur, fees typically range between £15 and £80 per case, depending on your acquiring bank or processor, just a heads up for anyone who is using stripe, they’ve also recently added a fee for you the business to dispute a chargeback also. Whilst this is refundable if successful we feel its not necessarily fair on the business owner so we will not be charging any chargeback dispute fees!.
Monthly Account Fees
Monthly fees can vary from £10 to £50, depending on the account structure and services included. Some banks will charge this as standard, whereas others do not. Payments World will always be open & honest about any fees you need to pay and when you need to pay them.
Payment Gateway Fees
Payment gateway costs vary between providers and may be charged as a monthly fee which can be anywhere from £20-£50 per account depending on the business. Most Acquirers will charge some sort of gateway fee to the merchant and this is for a number of reasons such as it covers the monthly management and ensures the merchant is committed also.
What Payment Methods Are Accepted?
With a high risk merchant account, you can accept a wide range of payment methods, including Credit and Debit Cards, Visa, Mastercard, American Express, business & international, although be aware if you operate in any sort of gambling you can no longer accept credit cards from the UK as this is now prohibited.
Accepting a broad range of payment options not only increases conversion rates but also gives your customers a smoother and more flexible checkout experience.
Running a high risk business should not mean struggling to access reliable financial services. While traditional banks and mainstream payment providers may decline applications from businesses within certain sectors Payments World is proud to help and offers fast approvals, competitive rates, and expert support tailored specifically to high-risk industries.
Get started with Payments World today and secure your high risk merchant account and business banking solutions, helping you operate confidently and compliantly in your chosen market.
The Charge That Nobody Talks About
Now this isn’t something that every high risk merchant had to pay however there is a high risk charge that is occasionally added by visa & Mastercard in order to process payments and can range from $500 TO $950 each, per year. This is known as the high risk registration fee, any usually only applies to adult entertainment, gambling, and subscription services. Visa recently increased its fee from $500 to $950 per acquiring bank or payment facilitator, while Mastercard’s fee typically starts at $500 but can go higher depending on the business type and volume.
These fees help the card networks monitor industries with higher risks of fraud or chargebacks. Merchants must pay the fee for each processor they work with, and failure to register properly can result in fines or termination of their ability to process payments.
Chargeback and Fraud Prevention Implementation
As I’m sure you’ve gathered by this point High risk businesses are more vulnerable to chargebacks, which makes it essential to put proactive chargeback prevention measures in place. This could include fraud detection software, real-time transaction monitoring, customer verification systems, and detailed dispute resolution protocols to maintain account health and avoid account closure.
Are There Any Additional Fees or Restrictions?
Payments world will always be open and honest about fees with you from the beginning, however some fees or terms may be added by the bank upon the application being approved for example you may be asked to pay a higher set up fee or be approved on the basis of the bank keeping a small rolling reserve of your funds for so many days at a time, this is typically 5-10% or it may be that your application is approved only for net settlement, this is where the bank take their money before releasing your funds. However payments world will always be open and honest.
How To Get Approved For a High Risk Merchant Account
Applying online for a high risk merchant account is generally straightforward. The first step is to contact us so we can match your business with a suitable high risk merchant account provider. Once an acquiring bank gives an initial indication of approval, you will be asked to submit formal documentation to complete your high risk merchant account application. This usually includes:
• Certificate of incorporation
• A recent bank statement showing the business name and account details such as account number and IBAN
• A scanned copy of valid identification for the business owner or company director
• An organisational chart
• A shareholder certificate
• For licensed businesses, the licence number and the name of the issuing authority
• Six months of processing history, including total processing volume, number of transactions and chargeback data
You should also ensure that your business website meets standard compliance requirements, including:
• Clear display of the company’s legal name
• A published returns and refunds policy
• Visible customer service or support contact information
• A full explanation of delivery methods and expected delivery times
• SSL security and active HTTPS encryption
Application procedures may vary from one provider to another, but the items listed above form the basis of what most high-risk merchant account providers expect during the approval stage.
Improving Your Chances of Approval
While submitting an application is the first step, there are several practical steps you can take to improve your chances of approval and secure more favourable terms from payment providers.
Keep your financial records up to date
Maintaining accurate and up-to-date accounts demonstrates financial stability and gives providers a clear view of your business performance.
Strengthen your credit profile
Although high-risk merchant accounts are designed for businesses with elevated risk, a stronger credit profile can still improve approval odds. Aim to avoid late payments, reduce outstanding liabilities, and maintain consistent financial management.
Ensure your terms and conditions are compliant
Clear, well-structured, and legally compliant terms and conditions show that your business operates within the appropriate regulatory framework. This helps build trust and reduces perceived risk for providers.
Review third-party agreements
If your business relies on external suppliers or service providers, ensure your contracts include adequate protections in case of delays, disputes, or non-delivery. This can help minimise refund issues and potential chargebacks.
Compare multiple providers
Engaging with several high-risk merchant account providers allows you to compare fees, terms, and approval criteria. It also strengthens your negotiating position and helps you identify the most suitable solution for your business.
Reduce chargebacks where possible
Keeping chargeback levels low is one of the most important factors in securing approval. Implement fraud prevention tools, use clear billing descriptors, and maintain a straightforward, responsive refund process.
Consider offshore merchant account options
In some cases, offshore providers may offer greater flexibility or higher approval rates depending on your business model. However, it’s important to carefully assess compliance requirements, fee structures, and long-term suitability before proceeding.
How Payments World Can Help
Payments World provides tailored high-risk merchant account solutions and business banking support for businesses operating in sectors that are often declined by mainstream providers.
We work with a network of specialist acquiring banks and payment processors that understand the unique challenges of high-risk industries, including higher chargeback levels, regulatory requirements and non-standard business models.
Rather than offering a one-size-fits-all solution, we match your business with providers that align with your industry, transaction volumes and long term goals. This helps ensure greater approval success, more competitive rates and a more stable payment setup.
Whether you have been declined by traditional banks or are looking to improve your current payment arrangement, our team can help you find a solution that is secure, compliant and built to scale with your business.
Conclusion
In summary, high risk merchant accounts provide an essential pathway for businesses that may struggle to secure traditional payment processing due to higher levels of risk. They allow companies in sectors with increased chargebacks, regulatory pressures, or complex trading models to continue accepting card payments and operating with confidence in the UK and beyond.
Although these accounts often involve higher fees and more detailed underwriting, they deliver practical benefits such as improved payment acceptance, fraud management tools, and greater flexibility for international or subscription-based businesses. This makes them a valuable solution rather than simply an alternative option.
Choosing the right high-risk merchant account provider is therefore a strategic decision. By partnering with a specialist that understands the demands of high-risk industries, businesses can maintain stability, protect revenue, and create a reliable foundation for long-term growth.
Frequently Asked Questions
Most frequent questions and answers
A high-risk merchant account is a specialised type of payment processing account designed for businesses that operate in industries with elevated levels of chargebacks, fraud risk, or regulatory scrutiny. Common high-risk sectors include CBD, adult entertainment, supplements, travel, gambling, and subscription services. High-risk accounts typically involve more thorough underwriting, rolling reserves, and slightly higher fees to reflect the increased exposure for the acquiring bank.
Businesses may be labelled high risk due to industry type, high average transaction values, history of chargebacks, operating internationally, or simply due to the nature of their products or services. Even startups with no trading history or those offering recurring billing (like subscription services) can be flagged. If your business falls into this category, you may need a high-risk merchant account to accept card payments securely and reliably.
Yes, you can. While mainstream providers may decline your application, specialist high-risk merchant service providers, like Payments World, work with acquiring banks that understand your sector. These providers assess your business on a case-by-case basis and can offer tailored solutions with competitive rates and ongoing support.
Reducing chargebacks starts with clear communication, transparent policies, accurate product descriptions, and strong customer service. Using 3D Secure, fraud filters, and clear billing descriptors also helps. At Payments World, we provide tools and guidance to proactively minimise disputes, protect your account status, and support long-term stability.
To apply, you’ll typically need proof of ID and address, business bank statements, trading history (if available), company incorporation documents, and your website terms, privacy policy, and refund policy. If you’re a startup, forecasts or a business plan may also be required. Payments World can help streamline this process and assist with documentation to improve your approval chances.
High risk merchant accounts usually come with slightly higher processing fees than standard accounts. These can include setup charges, rolling reserves (commonly 5–10%), monthly service fees, and per-transaction costs ranging from 2% to 6%, depending on the provider and industry. At Payments World, we work with multiple acquirers to help you secure the most competitive rates for your sector, with no hidden charges.
Yes, most high-risk merchant accounts support multi-currency and international payments, making them ideal for businesses with overseas customers or cross-border operations. However, some banks may charge extra for currency conversion or cross-border transactions. Payments World helps you find a solution that allows for seamless international processing without excessive fees or limitations.
Compare payments in minutes
Get Approved for a High-Risk Merchant Account
If your business operates in a high-risk sector, getting approved with the right provider can be challenging without the right support.
Request a free quote to compare available options and find the best fit for your business.
