Find the processor your business will actually be approved by.

Payment processing FAQ

Answers before you apply

The questions merchants ask most — about pricing, approval, risk tiers, and what to do when a mainstream processor says no.

What is a payment processor?+

A payment processor is a company that handles card and digital transactions between your business, your customer's bank and your bank. It authorizes payments, moves the money and provides the tools to accept cards, wallets, bank transfers and sometimes bitcoin. Processors like Stripe, Adyen and Square bundle this with a gateway and merchant account; high-risk specialists add underwriting for industries mainstream providers decline.

How do I choose the right payment processor for my business?+

Start with three things: your industry and risk tier, your monthly volume, and the payment methods your customers expect. Standard-risk businesses under $50k per month usually do best with a flat-rate provider like Stripe or Square. High-risk industries need a specialist acquirer that underwrites your vertical. Above roughly $1M per month, interchange-plus pricing from a direct acquirer is almost always cheaper. Use the matcher on this page to shortlist three providers in 30 seconds.

What is the difference between a payment gateway and a payment processor?+

The gateway is the software that captures and encrypts the customer's payment details at checkout; the processor is the service that routes the transaction through the card networks and settles the funds. Many modern providers — Stripe, Adyen, Braintree — bundle both. Others, like Authorize.Net, sell the gateway separately and let you attach a merchant account from a different acquirer.

Why was my business declined by Stripe or Square?+

Almost always because of the risk model, not your business personally. Mainstream processors automatically decline industries with elevated chargebacks or regulatory complexity: adult, CBD and hemp, supplements, travel, telehealth, dating, firearms-adjacent retail and crypto. The fix is applying with a high-risk specialist that underwrites your vertical — PSPDex lists dozens of them, and our high-risk guide explains how approval works.

What is a high-risk merchant account?+

A high-risk merchant account is a card acceptance account underwritten by an acquirer that specializes in industries mainstream processors avoid. Expect higher rates (typically 3–6%), a rolling reserve, and a manual underwriting review that takes days rather than minutes. In exchange you get stable processing without sudden freezes or terminations, provided you keep chargebacks under the card networks' thresholds.

How much do payment processors charge?+

Standard-risk online processing typically runs 2.6–3.5% plus a fixed fee of $0.10–$0.30 per transaction on flat-rate plans. Interchange-plus plans pass through the card networks' cost plus a markup of roughly 0.2–0.6%. High-risk merchants usually pay 3–6% plus a rolling reserve of 5–10%. Monthly fees range from zero on pay-as-you-go plans to $25+ on gateway-only setups. Always compare the effective rate — total fees divided by volume — not the headline number.

What is interchange-plus pricing and when is it worth it?+

Interchange-plus pricing passes through the exact interchange fee set by Visa and Mastercard plus a fixed, disclosed markup. It is more transparent and almost always cheaper than flat-rate pricing once you process more than roughly $50k–$100k per month. Below that volume, flat-rate plans are simpler and usually competitive. Our guides include calculators to compare both on your real numbers.

Can my business accept bitcoin and lightning payments?+

Yes. Options range from custodial gateways like BitPay and Coinbase Commerce that auto-convert to fiat, to self-hosted open-source tools like BTCPay Server with zero processing fees, to Lightning Network providers like OpenNode and Voltage for instant, near-free payments. Settlement can be in bitcoin or converted to your local currency. Our Bitcoin & Lightning page compares all of them, and the tools section has fee calculators for both networks.

What is a merchant of record and do I need one?+

A merchant of record (MoR) like Paddle, Lemon Squeezy or FastSpring becomes the legal seller of your product: it handles global sales tax and VAT, compliance, invoicing and chargebacks on your behalf. It is popular with SaaS and digital-product businesses selling internationally because it removes the need to register for tax in dozens of jurisdictions. The trade-off is a higher all-in fee, typically 5% plus a fixed amount per sale.

What should I do if my payment processor freezes my funds?+

First, find out why — processors usually freeze funds for a chargeback spike, a sudden volume increase, or a documentation request. Respond to every information request within 24 hours and keep shipping and fulfilment records ready. In parallel, apply with a second provider so you are never dependent on one account; high-risk specialists are used to merchants in exactly this situation. Our blog covers escalation steps and backup-gateway setups in detail.

Are the rates and reviews on PSPDex up to date?+

Listings are editorial summaries researched from each provider's published pricing, documentation and terms, and we review them on an ongoing basis. Rates are starting points — final pricing depends on your volume, industry and history, and providers update their terms regularly. Always confirm current pricing directly with the provider before signing. If you spot something outdated, use the contact page and we will verify and correct it.

Does PSPDex approve merchant accounts or negotiate rates?+

No. PSPDex is an independent editorial directory — we research and compare providers so you can shortlist the right ones, but approval decisions and pricing belong to the providers themselves. You can request a quote from any listing page, and the enquiry goes to the provider or its partners, who respond on their own timeline.

Explore the payments directory

Start with a pillar guide, narrow by industry, then compare individual providers and run the numbers.