What rates do high-risk merchants pay?

High-risk merchants typically pay 3.5%-5% plus $0.25-$0.50 per transaction, compared to 1.5%-3% for standard merchants. Processors also hold a rolling reserve of 5-10% of monthly volume for 6-12 months as a cushion against chargebacks. Setup fees and monthly minimums are also common. Rates improve over time as you build a clean processing history.