Running a high-risk business in industries like firearms, CBD, nutraceuticals, or drop shipping presents unique challenges, especially when it comes to payment processing. Traditional payment gateways often shy away from these industries due to higher chances of chargebacks, legal complications, or regulatory hurdles. However, without reliable payment solutions, these merchants struggle to offer a seamless customer experience, putting their entire business at risk.
What Makes a Business “High-Risk”?
A business may be classified as high-risk if it operates in an industry with a higher likelihood of chargebacks, fraud, or regulatory scrutiny. Factors that contribute to this classification include:
- Selling products with legal restrictions (firearms, CBD)
- Offering subscription-based models (like nutraceuticals)
- Engaging in drop shipping, which can lead to shipping delays and customer disputes
- High transaction volumes or high average ticket sales
Banks and traditional payment processors often avoid these businesses because the risks outweigh the rewards. As a result, high-risk businesses require specialized payment gateways that understand their unique needs.
A high-risk payment gateway is a solution for businesses in industries prone to chargebacks, fraud, or regulatory hurdles, like CBD, firearms, and drop shipping. These gateways offer advanced fraud protection, chargeback mitigation, and compliance with strict regulations. They are specifically designed to handle the risks associated with high-risk sectors, ensuring secure and reliable payment processing.
Tailored for High-Risk Industries
Bankful is designed to help high-risk WooCommerce businesses by offering a secure, flexible, and efficient payment gateway solution. Here’s how Bankful caters specifically to merchants in challenging industries like firearms, CBD, nutraceuticals, and drop shipping:
1. Firearms
Merchants selling firearms and related products face strict regulations and must ensure their payment processing complies with both federal and state laws. Many traditional payment gateways, including Stripe and PayPal, prohibit firearms transactions entirely.
How Bankful Helps:
- Compliance: Bankful ensures transactions meet regulatory requirements, allowing firearm merchants to process payments securely.
- High-Volume Sales: With robust infrastructure, Bankful supports merchants selling high-ticket items or handling high transaction volumes without issue.
- Fraud Prevention: Advanced fraud protection tools minimize the risk of chargebacks and legal disputes.
2. CBD
The rapidly growing CBD market is still considered high-risk due to legal ambiguity and regulatory hurdles. Many payment gateways are hesitant to work with CBD businesses, but Bankful provides a solution tailored to this industry.
How Bankful Helps:
- Regulatory Expertise: Bankful stays updated on shifting CBD regulations and ensures its services remain compliant.
- Subscription-Friendly: Many CBD businesses offer subscription services for products like oils and supplements. Bankful’s Native Subscriptions feature simplifies recurring payments and ensures seamless revenue streams.
- Chargeback Protection: With Bankful’s built-in chargeback management tools, CBD merchants can mitigate risks associated with product disputes or compliance issues.
3. Nutraceuticals
Supplements and nutraceuticals often experience high chargeback rates due to customer dissatisfaction or misunderstanding, making payment processing difficult for these merchants.
How Bankful Helps:
- Recurring Payments: Bankful’s subscription management tool ensures reliable, recurring revenue streams for nutraceutical businesses.
- Block Check-Out: This feature streamlines the checkout process, reducing friction and increasing customer satisfaction, which can help mitigate chargebacks.
- Cross-Platform Selling: Nutraceutical merchants can sell on WooCommerce, Shopify, BigCommerce, and other platforms while managing subscriptions through Bankful Cloud Sync.
4. Drop shipping
Drop shipping businesses face challenges such as shipping delays, chargebacks, and fraud, which classify them as high-risk. Additionally, many payment gateways block drop shipping merchants due to these risks.
How Bankful Helps:
- Multi-Currency Support: Drop shipping businesses often operate globally, and Bankful offers multi-currency payment support for international buyers.
- Chargeback Protection: With built-in fraud prevention tools, drop shippers can minimize chargebacks due to shipping delays or disputes.
- Cross-Platform Subscriptions: If a drop shipping merchant expands into subscription-based models, Bankful’s Omni Subscriptions feature allows them to manage recurring payments across multiple platforms.
| Feature | Bankful | Authorize.net | CCBill | PaymentCloud | Zen Payments |
|---|---|---|---|---|---|
| High-Risk Support | Yes, optimized for firearms, CBD, dropshipping, nutraceuticals, etc. | Yes, supports most high-risk industries with fraud mitigation tools | Yes, but less suitable for subscriptions | Yes, supports a wide range of high-risk industries | Yes, dedicated to high-risk industries |
| Global Currency Support | Yes, supports multiple currencies and regions | Yes, extensive global currency support | Limited, may vary by region | Yes, supports multiple international currencies | Yes, supports global payments |
| Subscription Management | Native subscription management within WooCommerce | Requires integration with additional plugins for WooCommerce | Limited support for subscription services | Requires third-party integration for subscription services | Limited, needs external subscription tools |
| Fraud Prevention Tools | Advanced fraud detection and chargeback prevention tools | Yes, built-in tools to mitigate fraud | Basic fraud prevention tools available | Uses third-party fraud prevention systems | Strong fraud prevention tools, including chargeback protection |
| Ease of Integration | WooCommerce-native app, easy setup with no coding required | Requires API integration or plugins | Simple plugin but lacks WooCommerce-native integration | Relies on third-party gateways like Authorize.net | Easy setup with dedicated high-risk tools |
| Compliance & Security | PCI DSS compliant, 3D Secure, tokenization | Full PCI compliance and tokenization | Basic compliance features, may require external tools | Comprehensive PCI compliance through third-party integrations | Advanced PCI compliance and security features |
| Chargeback Prevention | Yes, includes built-in chargeback management | Yes, includes chargeback tools | Basic chargeback tools available | Offers chargeback prevention via partners | Comprehensive chargeback prevention and management |
| Multi-Platform Support | Yes, with cross-platform subscription management via Bankful Cloud Sync | Requires third-party tools for multi-platform management | Limited multi-platform capabilities | Works with other gateways for multi-platform support | Works with WooCommerce and other platforms |
| Advanced Reporting Tools | Yes, with in-depth analytics for high-risk merchants | Yes, strong analytics and reporting | Limited reporting tools | Depends on the third-party gateway used | Advanced analytics and reporting for high-risk businesses |
| Pros | High-risk experts, native WooCommerce integration, cross-platform support | Strong fraud prevention tools, supports many currencies | Simple integration, good for basic setups | Flexible integration with multiple high-risk payment processors | Specialized high-risk support, simple setup, excellent fraud prevention |
| Cons | Still newer in the WooCommerce space compared to others | Requires more technical knowledge for integration | Limited subscription and multi-platform support | Relies heavily on third-party gateways for key features | Subscription management requires additional tools |
Why Bankful is the Best Payment Gateway for High-Risk WooCommerce Merchants
Bankful stands apart as a solution uniquely tailored for high-risk businesses by offering:
- Secure Payment Processing: Bankful provides a robust and secure infrastructure for industries where payment fraud and disputes are more likely.
- Compliance Expertise: High-risk industries, such as firearms and CBD, must adhere to strict regulations. Bankful ensures that transactions comply with these rules, giving merchants peace of mind.
- Cross-Platform Selling: With Bankful Cloud Sync, businesses can manage subscriptions across WooCommerce, Shopify, BigCommerce, and other platforms, maximizing reach.
- Block Check-Out: This feature enhances the user experience by offering a faster and more streamlined checkout process, reducing cart abandonment and improving conversions.
- Native Subscription Management: Especially valuable for businesses offering recurring services or products, native subscription management allows merchants to easily handle their recurring billing directly within WooCommerce.
If you’re a high-risk WooCommerce merchant operating in industries like firearms, CBD, nutraceuticals, or dropshipping, Bankful Woo 3.0 offers an ideal solution for your payment processing needs. With its industry-specific features, compliance support, and subscription management tools, Bankful ensures that your business can operate smoothly, securely, and efficiently.
Interested in learning more? Explore how Bankful Woo 3.0 can revolutionize your high-risk business’s payment processes today!
