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High risk ecommerce payment solutions are quickly becoming one of the hottest topics in the world of ecommerce today.
Here's why. Non-traditional sectors like CBD, gaming, travel and subscription services are booming. But they all have one problem:
-> Their chosen payment processor pulls their account or freezes funds
-> Increased chargebacks ratios due to higher risk transactions
But that's just the tip of the iceberg…
When trying to find a payment solution that works reliably for these types of businesses, traditional payment processors are useless. They either outright deny working with these sectors or make it incredibly difficult for business owners to work with them.
Non-traditional businesses are booming right now but they can't scale without the proper payment solutions. As more and more businesses are pushed online, the demand for high risk ecommerce payment solutions will continue to rise. That's why working with a reliable high risk merchant account provider can make all the difference for businesses operating in these sectors.
In this article we will cover:
- Why do non-traditional sectors struggle with payments?
- Why tailored ecommerce payment solutions are on the rise
- What to look for when choosing a payment provider
- How tailored solutions are changing the game for non-traditional businesses
Why Do Non-Traditional Sectors Struggle With Payments?
Let's dive into why non-traditional businesses struggle with finding the right payment processing solutions.
It all boils down to risk. Processors identify certain business sectors as "high risk". Industries like online gambling, nutraceuticals, firearms, CBD, vape and adult entertainment are commonly blocked by banks and payment processors.
If they do offer services to these sectors, expect higher fees and a slew of account restrictions.
This makes total sense from a payment provider's perspective. These types of businesses usually have higher chargeback ratios. They also fall under more regulatory guidelines which makes them harder to work with.
But for the business owners who HAVE TO operate in these sectors?
It's incredibly frustrating.
Getting shut down by a payment provider in the middle of a marketing campaign is one of the most stressful things a business owner can experience. All of a sudden thousands of dollars in revenue are lost. And then the search for another payment provider starts from scratch.
Oh and switching providers is no easy task. It takes time, money, and effort that most businesses can't afford to waste.
That's why tailored high risk ecommerce payment solutions are so important. Let's take a look at why more providers are popping up to meet this demand.
Why Tailored Ecommerce Payment Solutions Are On The Rise
The global high risk payments market was valued at $62.4 billion in 2025. It's projected to reach USD 148.7 Billion by 2034.
Talk about growth.
Every year, more industries are selling online than ever before. With new businesses moving online comes a demand for payment solutions built around their unique needs. The payment solutions that once worked for retail stores aren't going to cut it for these new non-traditional sectors.
Here are few industries that fall into this category:
-> CBD Stores
-> Subscription Services
-> Travel & Hospitality
-> Forex Trading
-> Cryptocurrencies
-> Nutraceuticals
-> Adult Entertainment
-> Gambling & Casinos
These industries all have one thing in common. They require specialized payment processing solutions.
That's why more payment providers are seeing a need for high risk ecommerce payment solutions that are tailored to these specific business sectors.
What To Look For In A Payment Provider
Just like any merchant service provider, doing research when choosing who to work with is essential. Not all high risk payment processors are created equal.
Some are going to look promising until the account gets approved only to find out they charge ridiculous fees. Or funds get frozen due to high chargebacks and no communication from the account manager.
Finding the right payment provider can make or break a business. Here are some of the qualities to look for when comparing providers.
Industry Specific Experience
First and foremost, the provider should have experience working with non-traditional sectors. Not all high risk industries are the same.
A provider that works with vape stores is going to be different than one that focuses on gambling websites. The processor needs to know the industry inside and out.
Providers that market themselves to all high-risk industries are usually going to be pretty vanilla with their solutions. Look for someone that specializes in a specific niche.
Another huge issue that high risk merchants face is hidden fees. No contracts should be signed with a payment provider before making sure their pricing structure is 100% transparent.
Transparent means knowing the exact rate charged for processing fees. As well as what the chargeback fees are if that ever happens. Also, make sure there aren't any hidden monthly minimums or set up fees.
Chargebacks are a high risk merchant's worst enemy. The payment processor needs to offer tools and services that help prevent chargebacks.
Whether that be through response fees, real-time alerts, or automatic response they should offer something to mitigate the chances of chargebacks as much as possible.
When a merchant account is needed fast, a payment provider that takes weeks to approve an account is not going to cut it. Everything about their process should be streamlined to get businesses up and running as quickly as possible.
How Tailored Solutions Are Changing The Game
In the past, payment processors took a one size fits all approach. Whether it was a candle shop or a CBD store, every business was given the same tools and resources.
That's no longer the case.
Tailored high risk ecommerce payment solutions are giving businesses exactly what they need and nothing they don't.
Here are some ways that custom solutions are giving non-traditional sectors an edge.
Every industry faces different chargeback risks. That's why cookie-cutter solutions won't work.
By having a payment solution tailored to a specific industry, the fraud prevention measures are built around the chargeback patterns that industry faces.
Processing Flexibility
Different industries have different processing needs. Some businesses may need higher processing limits during certain seasons. Others may have higher average ticket sizes.
When the payment solution is built around a specific industry, those specifications are taken into consideration.
Many high risk industries sell to international markets. By using a payment processor that allows businesses to accept payments in multiple currencies, customers are saved from bad exchange rates and conversion rates improve significantly.
Last but not least, when working with a company that specializes in a specific industry, expect nothing but excellent customer service.
Businesses get to talk to real people who work with that specific industry every day. That support makes all the difference when issues arise.
Instead of waiting on a generic customer service rep who knows nothing about the industry, there's access to account managers who can help pick the business up and get it running again. This kind of support is part of a broader digital transformation that non-traditional sectors are going through.
Any ecommerce store operating in a non-traditional sector NEEDS tailored high risk ecommerce payment solutions.
As more businesses are forced to go online, high risk online payment providers will continue to see a surge in demand. Here are the main points to remember:
-> Non-traditional sectors are underserved by major payment processors
-> Tailored high risk ecommerce payment solutions are in high demand
-> High risk markets are booming
-> Look for providers with specific industry knowledge and transparent pricing
Don't waste time and money trying to work with payment providers that don't understand the industry. When the right tailored solution is found, the results speak for themselves.
