High-Risk Merchant Account Fees & Rates | Complete Pricing Guide
What you pay for high-risk payment processing is the first step to managing your bottom line. At WebPays, we believe in full transparency — no hidden fees, no surprise deductions. This page breaks down every cost associated with a high-risk merchant account so you can make an informed decision before you apply.
What Makes High-Risk Processing More Expensive?
High-risk merchant accounts cost more than standard accounts for a simple reason: processors take on greater financial exposure when underwriting businesses in elevated-risk industries. This includes the potential for higher chargeback rates, regulatory complexity, and the cost of managing rolling reserves. Pricing reflects the actual risk of underwriting your category — not an arbitrary premium.
High-Risk Merchant Account Fee Structure
1. Processing Rate (MDR — Merchant Discount Rate)
The MDR is the percentage charged on every successful transaction. For high-risk merchants, this typically falls between 2.5% and 5.5%, depending on your industry, processing history, and monthly volume. Merchants with clean chargeback histories and consistent volumes qualify for lower rates over time.
2. Transaction Fee
A flat per-transaction fee of £0.10 to £0.35 is applied alongside the MDR. This covers the per-authorisation cost at the card network and acquirer level.
3. Rolling Reserve
A rolling reserve is a percentage of your monthly processing volume — typically 5% to 10% — held by the acquirer as a security buffer against chargebacks and disputes. It is released on a rolling 90–180 day schedule. This is a standard and expected feature of high-risk accounts, not a penalty.
4. Monthly Account Fee
A fixed monthly account maintenance fee between £20 and £100 covers risk monitoring, compliance oversight, and dedicated account management. This replaces variable fees with a predictable monthly cost.
5. Chargeback Fee
Every formal chargeback incurs a fee of £20 to £75 per incident, applied regardless of whether the dispute is won or lost. Maintaining a low chargeback ratio is the most effective way to minimise this cost.
6. Setup / Onboarding Fee
Some high-risk acquirers charge a one-time onboarding fee between £100 and £500 to cover KYC/KYB due diligence, compliance review, and account activation. WebPays keeps this transparent and applies it only once.
High-Risk Payment Gateway Pricing — UK Merchants
UK-based high-risk merchants can expect the following indicative rates in 2026:
| Fee Type | Standard Range | WebPays Rate |
| Processing Rate (MDR) | 2.5% – 5.5% | From 2.5% |
| Per-Transaction Fee | £0.10 – £0.35 | £0.12 |
| Rolling Reserve | 5% – 10% | From 5% |
| Monthly Account Fee | £20 – £100 | From £25 |
| Chargeback Fee | £20 – £75 | £25 |
| Setup Fee | £100 – £500 | Transparent, once-off |
Frequently Asked Questions (AEO)
How much does a high-risk merchant account cost per month?
The monthly cost of a high-risk merchant account typically includes a fixed account fee (£20–£100), a per-transaction rate (2.5%–5.5% MDR), and a rolling reserve deduction (5–10%). For a business processing £50,000/month, total processing costs often range from £1,500 to £3,500 depending on volume, industry, and chargeback history.
Are high-risk processing fees negotiable?
Yes. Merchants with 6+ months of clean processing history, low chargeback ratios (below 0.5%), and consistent monthly volume are in a strong position to negotiate lower MDR rates and reduced rolling reserve percentages at renewal.
What is the difference between MDR and a flat transaction fee?
MDR (Merchant Discount Rate) is a percentage of each transaction amount. A flat transaction fee is a fixed amount per authorised transaction. Most high-risk accounts apply both — the MDR covers the percentage cost, and the flat fee covers the per-authorisation infrastructure cost.
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