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Top High Risk Merchants That Need No Fee Payment Processing

Many business owners don't realize they're considered high-risk merchants until they apply for a merchant business account and are denied by banks or traditional payment processors. These merchants have a harder time getting approved to accept debit and credit card payments, and finding a payment processing provider that supports their needs can be challenging. 

Traditional providers often charge high fees to help cover the risks of working with high risk merchants, leaving few options for these businesses as accepting electronic payments in today's digital age is essential. High risk merchants need a processing solution that meets their unique needs and is designed to help them grow. 

In this blog from ModPay Solutions, we'll discuss the top high risk merchants that need no fee payment processing options and how they can benefit from this solution. 

Top High Risk Merchants That Need No Fee Payment Processing

Table of Contents:

  1. High Risk Merchants: What Are They?

  2. What is No Fee Payment Processing?

  3. Top High Risk Merchants That Need No Fee Payment Processing

  4. Healthcare Providers

  5. Travel & Hospitality

  6. Online Retailers

  7. Subscription and Membership-based Businesses

  8. Conclusion

People Also Ask:

What is a high risk merchant for credit card processing?

Merchants who process payments totaling over $20,000 per month or have an average transaction value of $500 or more may fall under the high-risk classification.

How much does a high risk payment processor charge?

The total cost of a processor's services relies on the processor. Traditional payment processors may charge hefty fees that exceed interchange rates by 0.3%. And some high risk providers may charge higher surcharges of up to 1.5%.  

What are high risk payment gateways?

High risk gateways are also known as high risk payment processors. These providers are businesses that specialize in working with merchants who operate in high risk industries. 

High Risk Merchants: What Are They?

However, being labeled as a high risk merchant doesn't mean these businesses are doing anything illegal. It means there is a higher likelihood of chargebacks and refunds. Despite the greater risks associated with processing payments for high risk merchants, there are payment processors who specialize in providing services to these businesses. 

These processors, like ModPay Solutions, have the necessary expertise and technology to mitigate risks and help high risk merchants process transactions safely and efficiently.

What is No Fee Payment Processing?

As the name suggests, no fee payment processing offers businesses a way to process card payments without paying costly merchant fees. How is this possible? Because with a no fee processing model, merchants have several options to process payments without fees. 

The most common way that no cost processing works is the business passes on a small fee to customers. While this may sound less than ideal at first, many economic studies show that consumers are willing to pay a small merchant fee if it means faster, more convenient transactions by paying with their credit cards.

When choosing this processing model, businesses must be as transparent as possible. This means merchants must inform customers about the fee and display the information on every receipt. 

Top High Risk Merchants That Need No Fee Payment Processing

Healthcare Providers

Healthcare providers, including medical marijuana dispensaries, alternative healing centers, online pharmacies, and telemedicine services, are also high-risk merchants that can benefit from no fee payment processing. They can process transactions without worrying about high processing fees, protect their clients' medical data confidentiality, and reduce the risk of fraudulent chargebacks.

Travel & Hospitality

Businesses in the travel and hospitality industry, such as airlines, hotels, rentals, travel agencies, and cruise lines, often deal with high-cost transactions and incur significant chargebacks. With no fee processing, they can decrease their overhead costs, offer better rates to their customers, and minimize the risk of fraud.

Online Retailers

Online retailers who sell high-ticket items such as electronics, jewelry, or luxury goods can face a high rate of chargebacks due to fraudulent purchases. No cost payment processing can help them manage their finances, reduce chargeback ratios, and improve their customers' shopping experience.

Subscription and Membership-based Businesses

Subscription-based merchants, including subscription boxes, online courses, and media streaming services, rely on recurring payments to maintain operations. However, they also face a high volume of declined transactions and chargebacks. 

With no fee processing, they can better manage their revenue, enhance their clients' satisfaction, and reduce their expenses.


Running a high-risk business can be challenging, but it doesn't have to be. By implementing no fee payment processing, merchants in various industries can better manage their operations, protect their customers' data and minimize chargeback risk. 

Whether in the adult entertainment, healthcare, or online retail gambling industry, this service offers a variety of benefits to retailers. As always, working with a reputable payment processor is essential to ensure that your transactions are secure, compliant, and efficient.

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