Best LANDI Android POS Hardware for Retail in 2026: A Buyer’s Comparison
Vidhi Joshi | 9 Min Read
The digital payment market is expected to reach $37.45 trillion in total transaction value in 2026, according to Statista, highlighting how digital payments have become a standard part of consumer and business transactions.
This growth doesn’t reach every business in the same way. Some industries are labeled as high risk by payment processors due to higher chargeback rates, strict regulations, or a business model that makes fraud more likely.
For these businesses, a high-risk merchant account is often the best realistic way to accept card payments at all. That solution comes with real trade-offs such as higher processing fees, chargeback exposure, reserve requirements, and a more demanding approval process than a standard merchant account.
This guide covers what makes a business high-risk, how high-risk merchant accounts differ from standard ones, what to look for in a provider, and how to integrate one into your POS without disrupting operations.
Key Takeaway
- A high-risk merchant account gives businesses in regulated or chargeback-prone industries, like tobacco, vape, CBD, adult content, gambling, and pharmaceuticals, a way to accept card payments that standard processors typically decline.
- Classification as high-risk depends on industry, chargeback ratio, transaction volume, business model, processing history, and regulations that vary by state.
- Compared to standard accounts, high-risk merchant accounts typically mean higher fees (3%-6%+), reserve requirements, longer approval times, and more documentation.
- Choosing the right provider means weighing compliance support and contract terms as much as rate and confirming the account integrates cleanly with your existing POS and payment terminal.
- The digital payments market is projected to reach $37.45 trillion in 2026, according to Statista, making reliable payment processing, high-risk or not, a growing priority for every business.
What Is a High-Risk Merchant Account?
A high-risk merchant account is a payment processing account issued to businesses that payment processors classify as higher risk due to industry type, chargeback history, transaction volume, or regulatory scrutiny. It provides tailored underwriting, fraud protection, and reserve terms that let these businesses accept card payments where a standard merchant account provider would likely decline them.
Why Is a Business Considered High Risk?
A processor’s high-risk classification is based on a specific set of factors that predict how likely a business is to generate chargebacks, fraud, or regulatory exposure.
Here are the factors that get evaluated:
Industry
Certain industries, like tobacco, vape, CBD, adult content, and gambling, may carry an elevated risk profile because of regulatory requirements, chargeback exposure, or restrictions imposed by payment networks and processors.
Chargebacks
A high chargeback ratio can signal to processors that a business presents greater financial risk, potentially leading to additional monitoring or a high-risk classification.
Transaction Volume
Very high transaction volumes, or sudden spikes in volume, can trigger a high-risk classification since they’re harder for a processor to monitor fraud patterns.
Business Model
Subscription billing, high-ticket items, and delayed delivery, like custom or pre-order goods, all carry more dispute risk than a simple, immediate-delivery transaction.
Processing History
A business with a history of account terminations, excessive chargebacks, or previous fraud flags will often be classified as high-risk by any new processor, even after switching the provider.
Regulations
Regulatory requirements vary significantly by state as age verification rules for tobacco and alcohol differ across states, and a processor must account for that regulatory patchwork when underwriting a business in these categories.
Standard Merchant Account vs High-Risk Merchant Account
The practical differences between a standard and a high-risk merchant account show up at nearly every stage, from how long approval takes to what happens when a customer disputes a charge.
| Factor | Standard Merchant Account | High-Risk Merchant Account |
|---|---|---|
| Approval | Often approved within 1-3 business days | Can take anywhere from a few days to several weeks |
| Processing Fees | Typically, 1.5%-3% per transaction | Typically, 3%-6% or higher per transaction |
| Chargebacks | Lower chargeback thresholds before penalties apply | Higher chargeback tolerance, but with added monitoring |
| Reserve Requirements | Rarely required | Often required, a rolling or fixed reserve to cover potential disputes |
| Documentation | Basic business and banking information | Detailed documentation, including licenses, financials, and processing history |
| Industry Eligibility | Limited to lower-risk industries by default | Built specifically for restricted or regulated industries |
| Provider Options | Wide range of mainstream providers | Fewer providers, most specializing in high-risk categories |
| Contract Terms | Typically shorter, more flexible terms | Often longer contracts with early termination fees |
| Settlement | Same-day or next-day funding is common | Delayed settlement is common, sometimes 3-5 business days |
| Risk Controls | Basic fraud tools (AVS, CVV) | Advanced fraud monitoring, chargeback alerts, and reserve-based controls |
Pro Tip:Ask upfront whether a reserve is rolling (a percentage held back on every transaction) or fixed (a flat amount held until released). The two work very differently for cash flow, and it’s an easy detail to miss until it’s already in your contract.
What Businesses Typically Need High-Risk Payment Processing?
Certain industries need high-risk payment processing not because they’re doing anything wrong, but because their products, regulations, or chargeback exposure put them outside what a standard processor will underwrite. The businesses below make up the bulk of the high-risk merchant category.
For businesses in regulated categories specifically, choosing a processor with strong compliance support matters as much as the rate itself. See what regulated businesses should look for in a payment partner’s compliance support for a closer look at what that support should include.
Common high-risk businesses include:
- Bars: The bars must comply with strict regulations and age verification requirements. High-risk payment processors offer tools to help with compliance while also providing secure transaction solutions.
- Tobacco Shops: Age-restricted products and fraud risks make secure payment processing essential for tobacco shops. High-risk merchant accounts offer fraud prevention tools to protect against unauthorized transactions.
- CBD: This industry faces increased scrutiny and must comply with strict regulations. High-risk payment processors offer solutions tailored to their unique challenges while also providing secure transaction options.
- Vape Shops: Like the CBD industry, vape shops face regulatory challenges and high fraud rates. High-risk payment processors offer tools to mitigate these risks.
- Cigar Shops: With similar challenges as tobacco and vape shops, cigar shops benefit from specialized payment solutions that address their specific needs.
- Adult Materials: This industry deals with sensitive content and faces strict regulations, making reliable payment processing crucial for ensuring compliance and customer privacy.
- Gambling: As an industry heavily monitored by authorities, gambling businesses require secure transactions that can handle large volumes and provide fraud protection to maintain trust and legality.
- Pharmaceuticals: With strict regulations surrounding the sale of medications, pharmaceutical companies need payment processing that can navigate these complexities while ensuring customer safety.
These businesses require special payment solutions that standard merchant accounts simply cannot provide. High-risk payment processors specialize in managing these unique challenges, offering services like chargeback protection, risk assessment, and compliance assistance, ultimately enabling these businesses to thrive in competitive markets.
Common Myth:Being classified as high-risk doesn’t mean your business is doing anything wrong; it often just reflects the industry you’re in. Vape shops and CBD retailers get flagged the same way regardless of how clean their individual processing history is.
Key Features to Look for in a High-Risk Merchant Account
When selecting a merchant account, take into account these important features:
- Transparent Pricing Structure: Understand all associated costs to avoid hidden fees.
- Flexible Payment Processing Options: Choose a provider that offers various payment methods.
- Robust Fraud Prevention Tools: Protect your business and customers from fraudulent activities.
- Excellent Customer Support: Ensure you have access to responsive and knowledgeable support.
- Easy Integration with Existing Systems: Seamlessly incorporate payment processing into your operations.
- Payment Card Industry (PCI) Compliance and Security Features: Adhere to industry standards for data protection.
- Chargeback Management Solutions: Effectively handle disputes and reduce chargeback rates.
- Quick Approval Process: Minimize downtime with a swift application review.
- Reputation and Reviews of the Provider: Choose a reputable company with positive customer feedback.
- Scalability and Growth Potential: Select a partner capable of growing with your business.
Common Myths About High-Risk Merchant Accounts
Some common misconceptions about high-risk merchant accounts include:
- Only Certain Industries Are High-Risk: While some industries are indeed classified as high-risk due to factors like chargeback rates or regulatory scrutiny, it’s important to recognize that not all businesses within these sectors carry the same risks.
- High-Risk Merchant Accounts Are Always More Expensive: It’s a common misconception that all high-risk merchant accounts come with exorbitant fees. While they typically do have higher costs due to the increased risk, some providers may offer competitive rates based on the specific business model and transaction volume.
- High-Risk Businesses Cannot Accept Credit Card Payments: Many high-risk businesses are still able to accept credit card payments. They may just need to work with specialized payment processors that cater to their unique needs and challenges.
- Once Classified as High-Risk, Always High-Risk: This is not necessarily true; a business can improve its practices and reduce its risk profile over time, potentially leading to a reclassification by payment processors.
- High-Risk Merchant Accounts Are Only for Online Businesses: While many of these merchant accounts do cater to online businesses, brick-and-mortar locations in high-risk industries can also obtain the necessary merchant accounts to process payments.
- All High-Risk Merchant Account Providers Are the Same: There is a wide variety of providers specializing in high-risk merchant accounts, each offering different levels of service, fees, and support. It’s crucial for businesses to research and choose the right provider for their specific needs.
- High-Risk Accounts Guarantee Chargebacks: High-risk merchant accounts do not guarantee high chargeback rates. While businesses in this category may have higher chargebacks due to industry or other factors, having a high-risk account does not automatically mean excessive chargebacks.
- It’s Impossible to Find a Reputable Provider: While finding a trustworthy provider can be challenging, many reputable companies specialize in high-risk accounts and offer transparent services. Research and reviews can help in making the right choice.
- High-Risk Merchant Accounts Lack Support and Resources: Many high-risk merchant account providers offer robust support and resources to help businesses navigate their unique challenges, contrary to the belief that they do not provide adequate assistance.
- Using a High-Risk Account Means Lower Transaction Limits: While some high-risk accounts may have lower transaction limits due to the perceived risk, others may offer flexible options based on the business’s performance and history.
How to Choose the Right High-Risk Merchant Account Provider
Navigating the world of high-risk merchant accounts can be daunting, but selecting the right provider is crucial for the success of your business.
- Research Provider Reputation: Look for trustworthy companies with strong track records.
- Compare Pricing and Fees: Analyze costs to find the best value.
- Evaluate Customer Support Services: Ensure reliable support is available when needed.
- Check for Industry Experience: Choose providers familiar with your sector.
- Assess Integration Capabilities: Make sure systems will integrate smoothly.
- Look for Fraud Prevention Features: Prioritize security in your selection.
- Consider Contract Terms and Conditions: Understand the fine print before committing.
- Read Customer Reviews and Testimonials: Learn from the experiences of other users.
- Inquire About Chargeback Management: Investigate how disputes are handled.
- Ensure PCI Compliance and Security Standards: Protect sensitive information with compliant practices.
- What to Look for in a Payment Partner: Beyond rates and approval speed, the right payment processing provider should offer transparent underwriting criteria, dedicated support for your industry, and clear terms on reserves and contract length, whether you’re a solo operator or a multi-location chain.
Top High-Risk Merchant Account Providers
Here are some leading providers in the industry:
| Merchant Account Provider | Offerings | Special Features or Services |
|---|---|---|
| FTx Card Payments | Caters to businesses of all sizes, whether operating online, in-store, or both, and provides secure transaction support for high-risk items like Kratom and CBD. We also cater to other age-restricted businesses, including bars, tobacco shops, vape shops, and cigar shops. |
|
| PaymentCloud | Offers tailored solutions to meet the specific needs of each business, whether for low-risk or high-risk merchants. |
|
| Stax | Helps businesses simplify payment processing and manage recurring billing. |
|
| Signature Payments | Provides payment processing solutions for high-risk industries, including CBD, e-cigarettes, and adult entertainment. |
|
How to Apply for a High-Risk Merchant Account
Applying for a high-risk merchant account involves a few additional steps compared to a standard merchant account.
Here’s what to expect, from choosing a provider to setting up and testing your payment processing system:
1. Research and Select a Provider
Begin by researching various payment processing providers that specialize in high-risk merchant accounts. Look for those with a solid reputation, positive reviews, and tailored solutions for your industry.
2. Gather Required Documentation
Compile all necessary documents, which typically include business licenses, financial statements, tax returns, and any relevant compliance certifications. This documentation is essential for demonstrating your business’s legitimacy.
3. Complete the Application Form
Fill out the application form carefully, ensuring that all information is accurate and up-to-date. Providing detailed descriptions of your business operations can help streamline the approval process.
4. Submit the Application
Once your application is complete, submit it according to the provider’s specified method, whether online or via email. Ensure that you retain a copy for your records.
5. Undergo a Risk Assessment
After submission, the provider will conduct a thorough risk assessment. This process evaluates your business model, transaction history, and other factors to determine your risk level.
6. Provide Additional Information
Be prepared to offer further information if the provider requests it. This could include clarifications about your business practices, customer demographics, or financial projections.
7. Wait for Approval Decision
Once all information is submitted, you will need to wait for the provider to make an approval decision. This can take anywhere from a few days to several weeks, depending on the provider’s processes.
8. Review Contract Terms
If approved, carefully review the contract terms provided by the merchant account provider. Pay close attention to fees, chargeback policies, and termination clauses to ensure they align with your business needs.
9. Set Up Your Merchant Account
After signing the contract, work with the provider to set up your merchant account. This may involve configuring account settings and providing additional operational details.
10. Integrate Payment Processing Solutions
Integrate the necessary payment processing solutions into your existing systems, such as your website or point-of-sale systems, to facilitate seamless transactions.
11. Conduct Testing Before Going Live
Before launching, conduct thorough testing of the payment processing system to ensure everything works correctly. This includes running test transactions to verify that payments are processed smoothly and securely.
High-Risk Merchant Account and POS Integration
Getting an approved account for high-risk merchant services is only half the process. The account still needs to work seamlessly with the POS and payment tools your business runs every day.
Choose the Right Payment Gateway
Select a payment gateway offering high-risk merchant solutions and specifically built for high-risk industries, since a mismatched gateway can mean declined transactions or unnecessary manual review even after approval.
POS & Payment Terminal
Confirm that your point-of-sale and terminal hardware are compatible with your new merchant account before going live so transactions process without workarounds or delays.
See It in Action:FTx Card Payments integrates directly with FTx POS, so approval, setup, and compliance don’t require juggling separate systems. Request a consultation to see how it fits your current setup.
Security & Compliance
PCI compliance, tokenization, and Secure Sockets Layer (SSL) encryption all need to be carried over into the new setup. FTx POS and North’s secure payment processing integration simplifies self-assessment questionnaire (SAQ) compliance for merchants making this switch, reducing the manual work of staying audit ready.
Payment Settings & Transaction Management
Configure refund policies, chargeback workflows, and multi-currency settings, if applicable, to match your business model before processing live transactions.
Testing & Implementation
Run test transactions across every payment method you plan to accept, such as card-present, card-not-present, and any recurring billing, before your official launch date.
Training & Ongoing Support
Train staff on how the new payment flow works, including how to handle a decline or a customer dispute, and confirm what ongoing support your provider offers after go-live.
Wrapping Up
Selecting the right high-risk merchant account provider is crucial for your business’s success. Weigh all options carefully before making a decision. If you’re ready to take the next step, request a quote or consultation with a provider today and set your business on the path to secure and efficient payment processing.
FAQs
High-risk merchant accounts generally come with higher fees than low-risk ones. These fees may include setup fees, monthly account fees, higher transaction fees, chargeback fees, and possibly rolling reserves. The actual fees vary based on the provider and how your business is assessed for risk.
Getting approved for a high-risk merchant account usually takes longer than for low-risk accounts, often between a few days and two weeks. The approval process includes a detailed review of your business model, financial history, and risk factors.
Yes, you can switch to a high-risk merchant account if your current processor doesn't meet your business needs. It's a good idea to research and compare different providers to find one that suits your industry and risk level.
If your merchant account is terminated, you may find it difficult to get another provider to work with you. It’s important to understand why your account was terminated and resolve any issues before seeking a new one.
High-risk merchant accounts are designed for businesses in sectors that often face higher rates of chargebacks, fraud, and payment disputes. These accounts usually have stricter terms and higher fees. In contrast, low-risk accounts are for businesses with stable transaction histories and lower perceived risks.
The cost can vary widely depending on your industry, transaction volume, and risk level. Expect higher transaction fees, typically between 3-6%, along with extra charges for chargebacks and reserves.
Yes, it’s possible to transition from high-risk to low-risk status by improving your financial stability, lowering chargeback rates, and demonstrating a consistent transaction history over time. Regularly reviewing and optimizing your operations can help with this change.
You can use fraud prevention tools like address verification systems (AVS), card verification codes (CVC), and fraud detection services. A chargeback management system and clear communication with customers can also help reduce risks.
High-risk payment processors are specialized in handling the unique challenges of high-risk industries. They provide tailored solutions, flexible terms, and industry knowledge, helping businesses process payments efficiently while managing risk effectively.