Learn why some businesses are labeled high-risk by payment processors in 2025. Discover key risk factors and how BridgeSwipe helps high-risk merchants thrive.
You made your website, came up with an offer that clients want, and you’re ready to go, but the payment processor says no to your application. Or even worse, they stop your account after only a few sales.
Does this sound familiar?
It could be because your firm is considered “high-risk” if you’ve ever had difficulties establishing a merchant account. But what does that truly mean, and what can you do about it?
We’ll talk about the following in this blog:
- What “high-risk” implies to payment processors.
- The main things that determine your risk status.
- What it means for your business to be called “high-risk” and how BridgeSwipe enables high-risk merchants do better instead than just getting by.
What does it mean to be “high-risk”?
When a payment processor calls your firm “high-risk,” they mean that there is a higher likelihood that something may go wrong with your payments.
That “something” could be chargebacks, fraud, refunds, problems with the law, or even bad press. Just because you’re in a high-risk industry, business, or customer behavior pattern doesn’t imply you’re doing anything illegal. It just means you need to keep a closer eye on things and take extra precautions.
The Main Reasons Why Businesses Are Seen as High-Risk
Here are the primary things that payment processors look at when deciding what kind of business to classify:
1) High Rates of Chargebacks
When a customer disagrees with a charge on their card, a chargeback happens. Most processors employ a chargeback ratio of more above 1% to determine risk. This means that high-risk organizations often have chargeback ratios that are higher than this.
Examples:
- Businesses that charge you a subscription fee but don’t make it obvious how to cancel.
- Trial offers or billing that happens every month.
- Products that take a long time to ship.
How BridgeSwipe can help: We have built-in chargeback notifications and tools that help you swiftly respond to and defend disputes. This lowers your risk and keeps your account safe.
2) Type of Product or Industry
Some industries are automatically identified as high-risk because of rules, what customers think, or past data.
Some industries that are often high-risk are:
- CBD and hemp goods
- Adult entertainment or novelty products
- Crypto and currency
- Nutraceuticals and supplements
- Online tutoring or tickets
- Travel and booking services
- Sites for dating.
How BridgeSwipe helps: We focus on helping businesses in these areas, making sure their processing is stable even when regular gateways won’t work with them.
3) High average value of transactions
If your average ticket size is big (like $500 or more), each sale is riskier for your business. One contested transaction could cost both the processor and your organization a lot of money. For example,
- high-ticket coaching programs and luxury goods.
- Software or services for businesses.
How BridgeSwipe helps: We help merchants of all sizes by giving them scalable processing limits, so your growth doesn’t stop.
4) Subscription or billing models that happen again and again
Recurring billing is easy for clients, but it also makes it more likely that there may be disagreements and refund claims, especially if the rules aren’t clear.
How BridgeSwipe helps: Our platform is made to work with recurring billing models. It has fraud controls and capabilities for billing transparency that make it easier to get refunds.
5) New business or little history of processing
When there isn’t a record, processors grow anxious. If you’re a startup, you might be seen as high-risk even if your industry isn’t, just because there isn’t any data from the past to back it up.
How BridgeSwipe helps: We welcome new enterprises and startups, and we help you develop a history of processing that lowers your perceived risk over time.
Why This Label Is Important for Your Business
Being called high-risk has an effect on more than just your payment gateway:
• You might have to pay more in transaction fees
• You might have to keep a rolling reserve
• Mainstream processors (Stripe, PayPal, Square) might not let you use your account
• Your account could be closed without warning if the risk goes up
This is why it’s not only wise but also necessary to pick the correct high-risk payment gateway.
How BridgeSwipe Helps Merchants Who Are High-Risk
BridgeSwipe thinks that being high-risk doesn’t entail being high-stress. We assist businesses like yours accept payments in a safe, legal, and sure way. This is how:
• Support for high-risk verticals like CBD, adult, crypto, coaching, travel, and more
• Tools for advanced fraud and chargebacks: pacifying and implications please; real-time notifications;, filters; and dispute management;
high approval rates; Less false declines thanks to tailored risk modeling.
Clear pricing means no hidden fees or surprises.
•Friendly onboarding and help whenever you need it, so you’ll never be in the dark.
Last Thoughts
If payment processors think your firm is high-risk, don’t take it personally; it’s not because of your morals or the quality of your work. It’s about how much money and rules you think you might be exposed to. How you react is what counts.
With the appropriate high-risk payment gateway, like BridgeSwipe, you can turn “high-risk” into “high-reliability,” get paid faster, and grow without worry.
Need assistance figuring out the high-risk label?
Find out how BridgeSwipe can create a payment solution that fits your business perfectly, without the worry of shutdowns or lost sales. Visit BridgeSwipe or make an appointment for a demo now.