To choose vendors that are the best fit for high-risk merchants, Forbes Advisor researched the industry and analyzed several different providers. Businesses operating in high-risk industries will have different needs than most. As a result, we were specifically looking for providers that provide services to these merchants.
Then, we each provider according to how well they scored in five categories of features using 15 different metrics that were weighted to favor features that high-risk small business owners find valuable in a provider. The following is a breakdown of the categories we used to rank the providers that made the top of the list.
Pricing
Many consumers value a transparent fee structure. Companies that provide this information up front were rated more highly than if contacting a representative is required. Companies that offered online quotes for their pricing also fared better in our ratings. Pricing accounted for 10% of our weighted scoring.
Features
Different businesses will have varying levels of needs. Companies that provide versatile options to meet those needs received higher scores. Features we looked for include a reporting dashboard, invoicing, data exports, contactless payments, chargeback monitoring and fast deposits.
Additionally, having reliable, accessible support, including offshore account support, is crucial when things go awry. Companies with multiple channels of communication available were rated more highly than those that rely solely on limited channels. We weighted features at 60% of our total score.
Third-party Reviews
We took a look at reviews and recognition from customers and third-party reviewers to see what actual users think of the services. Companies were scored both on the average rating and the number of reviews. The review sites we looked at included the Better Business Bureau (BBB), Capterra and Trustpilot. Reviews given by real users that scored high (4 out of 5 or higher) fared better in our rankings. These accounted for 15% of the total score.
Expert Analysis
For our final review, we looked at a high-risk merchant service provider’s popularity and stand-out functionality as noted by real users to determine our expert’s score, which made up 15% of the total score.
Featured Partners
Advertisem*nt
1
Stax
Free Trial
No
Offers
First Month Free
Pricing
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
Clover POS is used by companies with any number of employees, which could range from 10 to 50 employees and revenue of various amounts. A vast number of companies are using Clover for their businesses, and these businesses include low and high-risk businesses.
Generally, high-risk business owners can expect credit card processing rates of 0.5% to 1% higher than low-risk processing rates, which end up ranging anywhere from 3.49% to 3.95% per transaction on average plus a $0.25 transaction fee. Typically, monthly fees range from $10 to $50.
A high-risk merchant account is a subset of services that allow businesses in high-risk verticals to accept card payments from customers. These accounts typically come with stricter requirements and stipulations than standard merchant accounts and will be costlier to maintain.
Looking at the top-ranked companies, JPMorgan Chase & Co. ranks first for estimated US total processing volume at $2.4 trillion and total transactions at 46.2 billion. Stripe ranks first for estimated US total number of merchants at nearly 3.8 million.
COMPREHENSIVE PROTECTION. Encryption and tokenization along with other card security functionality is available for various types of payments from swipe cards to EMV® chip cards and mobile payments that can help protect card data from payment fraud.
What does Clover charge for each transaction? Clover charges transaction fees based on the plan that the business chooses. Transaction fees range from 2.6% + 10c for the Starter Clover Go plan to 2.3% + 10c for the full Clover Station system.
According to industry analysts, the average credit card processing fees range from 1.5 percent to 3.5 percent of each transaction, although the final percentage depends on a host of factors. Also, be aware that credit card processing fees are entirely different from the fees consumers pay for carrying a credit card.
Beginning April 1, 2024, registration fees for high-risk merchants will rise from $500 to $950 per provider for each acquirer with whom the merchant is registered. Additionally, merchants will be charged 10 cents per transaction and 10 basis points to volume processed.
A good effective rate for payment processing depends on several factors, including your business type. For most businesses, a good effective rate for credit card processing is between 2% and 4%. However, there are cases where a higher effective rate can be expected.
If you want a credit card processor that will also provide you with a full POS system, Square is better. However, if you already have a POS system and rely on in-person transactions of less than $500 each to keep your business running, Stripe may be the better fit.
Introduction: My name is Terence Hammes MD, I am a inexpensive, energetic, jolly, faithful, cheerful, proud, rich person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
