For businesses operating outside the United States, securing a high-risk merchant account to process credit and debit card payments can feel like navigating a labyrinth. High-risk merchants—those in industries like online gaming, adult entertainment, or e-commerce with high chargeback rates—often face additional hurdles due to their perceived risk to banks and payment processors. When you’re based abroad, the challenge intensifies with factors like local banking regulations, currency conversion, and U.S.-specific requirements. However, with the right approach, it’s entirely possible to obtain a U.S.-based high-risk merchant account or a viable alternative. Here’s a step-by-step guide tailored for international businesses.
Step 1: Understand Why You’re High-Risk
Before diving into the application process, pinpoint why your business is classified as high-risk. Common reasons include:
- Industry Type: Sectors like gambling, CBD sales, or subscription services are often flagged due to regulatory scrutiny or chargeback tendencies.
- Transaction Patterns: High volumes, card-not-present (CNP) transactions (e.g., online sales), or international customers increase risk.
- Financial History: Poor personal or business credit, past chargebacks, or being on the MATCH list (a blacklist of terminated merchants) can raise red flags.
Understanding your risk profile helps you anticipate what providers will scrutinize and tailor your application accordingly.
Step 2: Research High-Risk Merchant Account Providers
Not all payment processors serve high-risk businesses, and fewer still cater to non-U.S. entities. Focus on providers with a track record of working with international high-risk merchants. Some standout options in 2025 include:
- PaymentCloud: Known for supporting MATCH-listed businesses and offering customizable solutions, though it primarily serves U.S.-based firms.
- Durango Merchant Services: Specializes in hard-to-place international accounts with offshore banking options.
- Corepay: Offers global solutions with fast approvals for high-risk industries, including multi-currency processing.
- Instabill: Provides offshore merchant accounts and has experience with non-U.S. clients.
Avoid mainstream aggregators like PayPal, Stripe, or Square—they often reject high-risk businesses outright or freeze accounts post-signup when risks surface. Instead, seek providers advertising “high-risk” expertise and international capabilities.
Step 3: Assess Your Eligibility as a Non-U.S. Business
U.S.-based merchant accounts typically require:
- A U.S. Employer Identification Number (EIN).
- A U.S. bank account.
- A U.S.-registered business entity (e.g., LLC or corporation).
- A Social Security Number (SSN) or valid U.S. ID for the owner.
If you lack these, don’t despair—alternatives exist. Providers like Durango or Instabill offer offshore accounts that bypass some U.S.-specific requirements, though they may come with higher fees or currency exchange challenges. Alternatively, incorporating a U.S. entity (detailed in Step 5) can unlock access to domestic accounts.
Step 4: Gather Essential Documentation
High-risk applications demand more scrutiny, especially for non-U.S. applicants. Prepare:
- Business Details: Legal name, physical address, website URL, and proof of registration in your home country.
- Financial Records: Bank statements (3-6 months), processing history (if any), and personal/business credit reports.
- Owner Information: Passport or national ID, proof of address, and credit history (if available).
- Business Plan: A one-pager outlining what you sell, your pricing model, and target markets—crucial for transparency.
- Website Compliance: Ensure your site has an SSL certificate, clear terms of service, refund policies, and contact info.
Processors will dig deep into your chargeback history and fraud risks, so clean records or mitigation strategies (e.g., fraud prevention tools) boost your odds.
Step 5: Consider Incorporating in the U.S.
If your sales heavily target U.S. customers or you’re hitting significant revenue (e.g., seven figures monthly), forming a U.S. entity might be the smoothest path. Here’s how:
- Choose a State: Delaware or Wyoming are popular for their business-friendly laws and low costs.
- Register an LLC: Use a service like LegalZoom or hire a local agent—costs range from $100-$500.
- Get an EIN: Apply free via the IRS website once registered.
- Open a U.S. Bank Account: Digital banks like Mercury or Wise Business cater to non-residents, often without an SSN.
This setup aligns you with U.S. provider expectations, potentially lowering fees and simplifying approvals. However, it adds tax and compliance responsibilities—consult a local accountant or lawyer.
Step 6: Apply Strategically
Submit applications to multiple providers to compare offers. High-risk accounts vary widely in:
- Processing Fees: Expect 3.5%-5% per transaction (versus 2%-3% for low-risk), plus flat fees (e.g., $0.25-$0.50).
- Reserves: Rolling reserves (5%-10% of sales held for 3-6 months) are common to cover chargebacks.
- Contract Terms: Watch for early termination fees or lengthy commitments.
Be upfront about your non-U.S. status and industry. Opaque applications risk rejection or delays. If denied, ask for feedback—some issues (e.g., credit score) can be improved over time.
Step 7: Explore Offshore Alternatives
If U.S. accounts prove elusive, offshore merchant accounts (e.g., in Europe, Canada, or the Caribbean) are viable. Benefits include:
- Fewer U.S.-specific requirements (no EIN or SSN needed).
- Multi-currency support for global sales.
- Approval for industries U.S. banks shun (e.g., adult content).
Downsides? Higher fees, exchange rate losses, and slower fund settlements. Providers like Instabill or Corepay excel here—specify your home country and industry when inquiring.
Step 8: Optimize for Approval and Longevity
To maximize approval chances and maintain your account:
- Reduce Chargebacks: Offer clear product descriptions, fast shipping, and responsive customer service.
- Maintain Cash Flow: Keep healthy bank balances to signal stability.
- Use Fraud Tools: Integrate gateways with anti-fraud features (e.g., 3D Secure).
- Stay Compliant: Adhere to Visa/Mastercard rules and local laws.
Once approved, monitor your account monthly—high chargeback ratios or sudden volume spikes can trigger holds or termination.
Final Thoughts
Securing a high-risk merchant account from outside the U.S. requires persistence, transparency, and strategic planning. Whether you opt for a U.S.-based account via incorporation or an offshore solution, the key is aligning with a provider that understands your industry and location. Start small, test multiple applications, and scale as you build trust with processors. By March 16, 2025, the payments landscape continues evolving—stay adaptable, and you’ll find a solution that keeps your business thriving globally.
