“High risk” sounds like a judgment about your business. It is a category assignment made by acquiring banks and card networks based on the industry’s history of chargebacks, regulation and delivery timing. A well-run CBD store is high risk. A poorly run bakery is not. This page explains how the label is assigned, what it costs, and how to get approved with terms that are not punitive.
Why aggregators close accounts
Stripe, Square, PayPal, Shopify Payments and WooPayments operate one master merchant account and put every merchant under it. Their terms prohibit categories that would threaten that master account. Their onboarding is automated, so prohibited businesses often get approved, process for a few months, then get a termination notice and a funds hold of 90 to 180 days. The hold is the real damage.
A merchant account underwritten to your business by an acquirer that accepts your category does not have that failure mode. The underwriting takes longer and the pricing is higher, and the account stays open.
Who gets the label
| Category | Why | Typical placement |
|---|---|---|
| CBD, hemp, kratom | Regulatory patchwork, card-brand rules | Specialist acquirers; domestic accounts available for compliant hemp-derived products |
| Nutraceuticals, supplements | Chargebacks, free-trial history, FTC scrutiny | Specialist acquirers |
| Vape, e-cigarettes, tobacco online | Age verification, regulation | Specialist; often with age-verification requirements |
| Subscription with trial offers | Chargebacks from forgotten trials | Specialist; strict disclosure rules |
| Travel, tours, events, tickets | Delivery months after charge | Specialist; reserves common |
| Firearms accessories, ammunition | Reputational, legal | Specific acquirers only |
| Adult | Reputational, chargebacks | Specialist |
| Debt collection, credit repair | Regulatory | Specialist, with licensing |
| Telemarketing, tech support | Chargebacks, fraud history | Hard to place; documentation heavy |
| MLM, coaching, seminars | Chargebacks, refunds | Specialist |
| Any business with a terminated account or chargebacks over 1% | History | Specialist, with reserve |
Cannabis with THC remains outside the card networks in the United States; those businesses use cashless ATM, PIN debit or bank-based alternatives, not a card merchant account.
What it costs
| Line | Typical range |
|---|---|
| Processing | 3.5% to 6% plus 20¢ to 50¢ |
| Monthly fee | $20 to $50 |
| Gateway | $15 to $30 plus per-item |
| Chargeback fee | $25 to $50 |
| Rolling reserve | 5% to 10% for 90 to 180 days, negotiable down after history |
| Setup or application | $0 to $300 depending on acquirer |
| Contract | Often 12 to 36 months with the specialist acquirers; ask |
That is expensive relative to a standard account and cheap relative to not being able to take cards. Rates should come down at the six-month and twelve-month marks if the chargeback ratio stays under 1%.
Getting approved
Underwriters approve businesses that look like they will not generate chargebacks and will not disappear. Present accordingly:
- Website complete before applying. Product pages with clear descriptions and prices, terms of service, privacy policy, refund and return policy, shipping policy with timing, a real business address and phone, a working contact form, and secure checkout. Underwriters visit the site.
- Business documents. Formation documents, EIN, bank statements (three months), ID for owners, any licenses the category requires (for example a hemp certificate of analysis for CBD products).
- Processing history. Six months of statements from a prior processor if you have them, showing volume and chargebacks. A clean history is the strongest single factor.
- Honest volume and ticket estimates. Underwriters compare them to the bank statements. Overstating volume delays approval.
- A compliant offer. No “free trial” that converts to a $89 charge without a clear disclosure. No claims that violate FTC rules. These are what generated the category’s chargeback history.
Approval on a well-prepared application typically takes three to ten business days.
Keeping the account
Everything on the 3D Secure and chargebacks page applies double. AVS and CVV enforced, 3DS enabled, a clear descriptor, dispute alerts through Verifi and Ethoca so you refund before a chargeback lands, fast refunds, and a monthly look at the ratio. High-risk acquirers terminate for ratio, not for category.
What we can and cannot do
We place accounts through partner acquirers for categories including CBD and hemp, supplements, subscriptions, travel and several others, with NMI, Fluidpay or accept.blue as the gateway. Some categories we cannot place, and we say so on the first call rather than after an application. Text your category and volume and you get a straight answer.