High Risk Merchant Accounts UK: Providers & Pricing
What Industries Are Classed as High Risk?
In the UK payments industry, the following sectors are typically classified as high risk by acquiring banks:
- CBD and hemp products — regulatory grey area, high chargeback potential
- Vaping and e-cigarettes — age-restricted, regulatory scrutiny
- Adult entertainment — reputational risk, high chargebacks
- Gambling and gaming — regulated by the Gambling Commission, high fraud risk
- Travel and ATOL-bonded bookings — long fulfilment times, high-value refunds
- Nutraceuticals and supplements — subscription models, health claims
- Forex and crypto exchanges — FCA regulation, fraud exposure
- Debt collection and credit repair — regulated by the FCA
- Firearms and weapons — age-restricted, legal complexity
High Risk Merchant Account Costs
Expect to pay significantly more than standard merchant accounts:
| Fee Type | Standard Account | High Risk Account |
|---|---|---|
| Transaction rate | 0.5%–1.75% | 2.5%–6% |
| Monthly fee | £0–£25 | £25–£100 |
| Setup fee | Usually free | £100–£500 |
| Rolling reserve | None | 5%–10% held for 6 months |
| Chargeback fee | £15–£25 | £25–£50 |
UK High Risk Payment Processors
These providers specialise in or accept high risk merchants in the UK:
- Worldpay — accepts some high risk verticals (travel, regulated sectors) via their enterprise division.
- Cashflows — UK-based acquirer with appetite for moderate risk industries.
- Trust Payments — specialises in high risk ecommerce and international merchants.
- PaynetSecure — dedicated high risk processor for UK and EU merchants.
- Unicorn Group — handles CBD, vaping, and adult merchants in the UK.
How to Apply for a High Risk Merchant Account
The application process is more intensive than standard accounts. You'll typically need:
- 6–12 months of processing statements (if switching from another provider)
- Company registration documents and director ID
- Website with clear terms, privacy policy, and refund policy
- Evidence of regulatory compliance (e.g. MHRA registration for supplements)
- Bank statements showing consistent cash flow
Request a high risk merchant account quote — our team can match you with specialist providers who accept your industry.
Frequently Asked Questions
What is a high risk merchant account?
A high risk merchant account is a payment processing account for businesses in industries with higher chargeback rates, regulatory complexity, or reputational risk. Examples include CBD, vaping, adult content, gambling, travel, and nutraceuticals.
Why do high risk businesses pay more?
Acquirers charge higher rates because high risk sectors have more chargebacks, fraud, and regulatory exposure. Rates typically range from 2.5%–6% per transaction, with rolling reserves of 5%–10% held back for 6 months.
Can high risk businesses use Square or Stripe?
Generally no. Square, Stripe, and SumUp prohibit most high risk industries in their terms of service. If you sign up and they discover your business type, they will freeze or close your account — often without warning.
How long does it take to get a high risk merchant account?
Typically 5–15 business days, compared to 1–3 days for standard accounts. The application process involves more due diligence, including business documentation, processing history, and sometimes a site inspection.