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High Risk Payment Gateway for WooCommerce: What Are They?

A high-risk merchant account is more susceptible to chargebacks, fraud, or a high volume of returns. Many businesses are considered high-risk because they operate in industries with high chargeback or fraud risks. Industries regarded as high risk include online gambling, adult entertainment, and e-commerce businesses that sell digital goods.

A high-risk industry is defined as a sector that poses greater operational, regulatory, or reputational risks to financial institutions, often due to regulatory changes, potential disputes, or industry-specific challenges such as those related to CBD, vapes, tobacco, or subscription services.

If you are a business owner in a high-risk sector, you may have trouble getting approved for a traditional merchant account with a bank or credit card processor. These solutions are tailored for businesses operating in high-risk industries that face unique challenges when obtaining merchant accounts. That’s where a high-risk merchant provider comes in. These gateways are designed to help businesses working in high-risk industries specifically.

There are many benefits to using a high-risk payment gateway, including:

  • You are more likely to be approved for a merchant account
  • You will have access to a broader range of payment options
  • You can process payments in multiple currencies
  • You can customise your fraud prevention tools
  • High-risk payment gateways are compatible with most high-risk industries, supporting a wide range of business types
High Risk merchant accounts
High Risk Merchant

Reasons why your business is deemed high risk

High transaction volume

If your business processes a high volume of transactions, you will be considered a high-risk business. This is because there is a higher risk of errors occurring with a high volume of transactions.

High average order value

If your business has a high average order value, you will be considered a high-risk business. This is because there is a higher chance of fraud or chargebacks when the order value is high.

Industry type

As mentioned earlier, certain industries are considered high-risk. You will be regarded as high risk if your business falls into one of these industries.

Poor credit history

If your business has a poor credit history, you will be considered a high-risk business. This is because there is a higher chance of defaulting on payments and being a credit risk.

High-risk results in higher fees

High-risk businesses are charged higher fees because they present a greater risk to the merchant account provider. If a high-risk business defaults on its payments, the merchant account provider is at a greater risk of losing money. To offset this risk, high-risk businesses typically pay higher fees.

Many factors can make a high business risk, including:

  • The type of product or service being offered
  • The industry the business is in
  • The business’s credit history
  • The country or region where the company is located

If you’re considering starting a high-risk business, it’s essential to understand that you will likely incur higher transaction fees. However, there are ways to offset these higher fees. By working with a reputable high-risk payment processor, you can ensure that your business is getting the best possible rates and terms.

offshore merchant account
high risk merchant-providers

Choosing a high-risk merchant provider

When selecting a payment gateway for your high-risk business, it’s essential to consider several key factors.

  1. It would be helpful if you ensured that the payment gateway can handle the volume of transactions you expect.
  2. You need to ensure that the payment gateway can process payments quickly and efficiently.
  3. It would be helpful if you ensured that the payment gateway is secure and able to protect your customers’ information.

WooCommerce offers a range of payment solutions, including third-party gateways designed for high-risk merchants. These specialised gateways enable businesses to accept credit card payments and manage credit card processing securely and efficiently. While WooCommerce Payments is a built-in solution, it is not suitable for high-risk merchants. Instead, high-risk businesses typically need to utilise a third-party gateway to ensure secure and compliant WooCommerce payment processing.

High-risk payment gateway, UK

Below are some high-risk payment processors. Many of these providers offer WooCommerce high-risk payment solutions specifically tailored for WooCommerce websites operating in regulated industries, ensuring secure and compliant transactions.

These processors serve a variety of high-risk businesses, including those related to CBD, adult content, online gaming, and subscription services. Businesses in highly regulated sectors, such as CBD or adult content, should be aware of potential legal issues and the importance of choosing a provider experienced with WooCommerce high-risk merchants to ensure compliance and avoid legal complications.

Viva Wallet: CBD Oil

The Viva Wallet presently allows CBD companies to sell their products online and helps stores use their integrated payment system. Europe’s leading cloud-based service providers enable sellers to control their income, as they benefit from accepting payments with no hidden costs or monthly fees.

With features like “tap-on-phone Viva Wallet POS app” and “Smart Checkout”, Viva is set to make life easier for merchants and consumers. Viva Wallet also issues its own debit card, which can be managed in real-time through a personalised, transparent dashboard.

Regarding CBD businesses, Viva operates in both physical and online stores, offering an end-to-end solution that incorporates physical card machines and virtual terminals. Irrespective of how the customer pays, the cloud-based infrastructure ensures there are no missed payments. You can decrease their acceptance fees to 0% with the Debit Mastercard. Customer service is always available to help you in any case.

Worldnet: CBD Oil

Founded in 2007, Worldnet offers high-quality, reliable and cost-efficient solutions for online card payments. The company allows its partners to outsource their complete payment system or incorporate their services into an existing gateway. They have a WordPress and WooCommerce plug-in and are Shopify compatible.

Worldnet is one of the best options for high-risk sectors, as it provides one of the highest levels of security, allowing you to securely store the card in the Gateway. This means you don’t have to repeatedly ask for the card details. Dedicated customer service ensures that all your queries will be resolved promptly.

Even with its many advantages, the disadvantage of Worldnet is that it is not the best solution for those seeking quick service. However, the company regularly makes new modifications because it aims to become the best payment gateway provider for CBD and Hemp sellers.

TotalProcessing

Total Processing is a Manchester-based top provider of all-in-one payment and CBD processing solutions, as well as a payment gateway, and also deals in CBD products. Being free from the limitations of an acquiring bank, the company offers several customised merchant accounts that cater to the needs of various businesses.

With Total Processing, even small-scale CBD oil product sellers can install different payment options. Integrating into Shopify on behalf of sellers, the process is extremely easy. It encourages sellers to explore their options to find the ultimate solution for their specific business.

The company offers chargeback prevention and protection against deceitful activities by connecting to its payment gateway, which features a fraud protection suite for enhanced protection.

PurePay: CBD Oil

PurePay authorises CBD sellers to accept credit cards and local payment models quickly. The service ensures that every sales transaction is handled professionally and efficiently. The innovative API documentation ensures that integrating with PurePay for Secure Payment Processing is reliable, fast and easy. When integrating PurePay with WooCommerce, merchants must obtain and use API keys to enable secure payment processing.

PurePay has excellent Trustpilot reviews, allowing people to see the company’s customer service and Gerardo’s navigation expertise, which is rare to find in the CBD sector. Besides CBD, PurePay also operates in other higher-risk sectors, including adult, cryptocurrency, and dating.

The company offers competitive payment options in Europe and North America. The service also helps you obtain the proper APMs for your business, ensuring that it is on your end. The company also supports frequent transactions and streamlines the process.

Alternative high-risk merchant account providers

Some alternative high-risk providers other than the ones given above:

Square:

Established in 2009, Square Gateway can be used by businesses of any type or size as it provides tools that connect every side of your business. However, the software can only help with CBD oil in the US (not the UK or Europe). It offers firms simple practices for handling online payments, superior technology, and numerous eCommerce tools to make things easy for sellers.

Extremely versatile, the Square can turn the buyers’ devices into portable point-of-sales terminals. The navigation through this software is extremely simple. The best part is that there is no sign-up fee or hidden fee, and it processes all major credit cards online.

The online store features of Square are free, and it provides easy integration with your WordPress website. One negative aspect of the software is that Square’s customer service is not always the best, and the phone lines are not always available.

Authorize.Net

Available in the US, UK, Europe and Australia, Authorize.Net provides one of the most innovative, secure and reliable integrations for WooCommerce. Authorize.Net enables WooCommerce merchants to securely accept credit card payments, making it a popular choice for businesses with high-risk operations. The gateway solution helps encode, process, and approve credit card transactions. The best part about this service is that there is no contract, and there is no fine if you decide to terminate the service.

Some features of Authorize.Net include automatic recurring billing, advanced fraud detection, and account updater, all of which enhance the software’s functionality. Backed by Visa, Authorize.Net is one of the most secure payment gateways. The PCI-compliant solution further decreases the risk of fraud.

The charge for the international transaction will depend on your account and will be the same as a typical transaction. The software is the best for small to medium-sized businesses. The Payment Gateway extension lets you keep the buyer on your site for checkout.

CCBill

The CCBill payment gateway lets you configure and accept CCBill payments on your WordPress Website. They are experienced in high-risk payment processing. Originally designed only for eCommerce, the company has ventured to provide services in physical stores.

The software accepts all primary payment methods and offers free fraud control, membership management, and purchase management, along with 24/7 customer support. They offer full-service merchant accounts and an integrated payments platform with no monthly fee. As high-risk businesses have specific requirements, the company offers services that simplify the application process for their chosen payment models.

Although the software is quick, safe, easy, and reliable, it has its drawbacks, such as high processing rates and the need for a rolling reserve. However, it provides the level of control you want for your business.

Clearhaus

Founded in 2011, Clearhaus are one of the best payment service providers for your business. The sellers can have their account within 1-3 days of applying, and the pricing is transparent. The software supports almost all payment methods.

Clearhaus aims to provide the most suitable and secure way for businesses to accept online and mobile payments. Some software features include fraud detection, dynamic descriptors, recurring transactions, and more.

Managing risk and preventing chargebacks

For high-risk businesses, especially those operating WooCommerce stores, managing risk and preventing chargebacks is not just a best practice; it’s essential for long-term success. High-risk payment gateways are specifically designed to help high-risk merchants navigate the unique challenges of high-risk industries, offering advanced fraud prevention and chargeback protection tools that go far beyond standard payment processing solutions.

One of the key advantages of using a high-risk payment gateway is access to robust security features tailored for high-risk sectors. These gateways often include built-in tools such as address verification, 3D Secure authentication, and tokenisation, all of which help protect customer data and reduce the risk of unauthorised transactions. For high-risk WooCommerce merchants, these features are critical in maintaining secure payment processing and minimising the chances of costly chargebacks.

Chargeback prevention is another area where high-risk payment gateways excel. Many payment gateways offer advanced analytics and chargeback tools that enable merchants to monitor transactions in real-time, identify suspicious activity, and respond promptly to potential issues. By leveraging these tools, high-risk businesses can better understand their risk exposure and implement proactive measures to prevent chargebacks before they occur.

When selecting the ideal payment gateway for your high-risk WooCommerce store, it’s crucial to consider factors such as transaction fees, security features, and the level of customer support offered. The best payment gateway for high-risk merchants will offer robust security measures, including encryption, SSL certificates, and compliance with industry standards such as PCI DSS. Multi-currency support and competitive rates are also crucial, particularly for businesses that process payments from customers worldwide.

Integrating a high-risk payment gateway with your WooCommerce website is typically a straightforward process. Many payment service providers offer seamless integration through plugins or API credentials, allowing you to start accepting payments quickly and securely. Third-party gateways, such as NMI Gateway, are popular choices for high-risk WooCommerce stores, offering flexible payment options and advanced features to support your business as it grows.

Ultimately, effective risk management and chargeback prevention are vital for any high-risk merchant account. By selecting a reputable high-risk payment gateway and implementing robust security measures, high-risk businesses can protect themselves from fraud, minimise chargebacks, and ensure a seamless, secure payment experience for their customers. With the right payment gateway in place, you can focus on growing your business and building trust with your customers, knowing that your payment processing is in safe hands.

high risk merchants
standard merchant account

Benefits of a low-risk merchant account

Low-risk accounts charge lower fees and offer a better selection of account products to choose from. All in all, the risk involved is less.

Conclusion

A high-risk gateway is essential for high-risk businesses, as it protects a high-risk merchant in the event of an issue during a high-value transaction. It is not that low-risk merchants don’t need a Payment Gateway, but they can often do without high-risk merchant processors and services. Many companies offer high-risk merchant services, and their fee structure, features, and services vary. Before opting for merchant services for your high-risk account, conduct thorough research and select the service that offers the most suitable features.

Wesley Cude

Wesley Cude is the Founder of Cude Design and previously established The CBD Supplier, which he recently sold. A seasoned remote worker since 2013, he splits his time between London and Lisbon. Wesley is a driven entrepreneur with a keen focus on SEO.