The Truth About “High-Risk” Registration Fees: A Legalized Shakedown by Visa and Mastercard

By Thomas Troyer, CEO – 2nd Amendment Processing

Let’s cut the fluff and call it what it is: the Visa and Mastercard high-risk registration fee is nothing more than a money grab. It doesn’t protect the consumer. It doesn’t reduce fraud. It’s a forced fee designed to line the pockets of two companies that operate like monopolies — because, in reality, that’s exactly what they are.

As the CEO of a veteran-owned, conservative merchant processing company, I’ve had enough of watching businesses get nickel-and-dimed under the guise of “risk.” If you sell tobacco, firearms, supplements, CBD, or anything that’s deemed politically or socially controversial — suddenly you’re a liability in their eyes and for the privilege of continuing to operate, they expect you to pay them hundreds, sometimes thousands, of dollars per year in registration fees.

Let’s break it down.

The Supposed Purpose: "Monitoring" and "Compliance"

Visa and Mastercard claim this fee is for "registration and oversight of high-risk merchants." But what does that actually mean?

Does a tobacco store in Nebraska selling legal, regulated products really need to be “monitored”? Does a gun store using age verification and federal background checks need “oversight” from a credit card company?

No.What they’re doing is using the "high-risk" label as an excuse to charge you extra simply because they can.

You Pay — And Get Nothing in Return

There is no additional benefit to your business for being registered. You don’t get faster funding, better fraud protection, or lower rates. In fact, many processors will still hit you with higher per-transaction fees just because of your vertical.

So what do you really get for paying that $500 to $950 annual fee? Nothing. It's not a service — it’s a TAX on operating outside of Silicon Valley’s definition of “acceptable.”

The Monopoly Problem

Visa and Mastercard control more than 80% of all U.S. card transactions.That’s not just market dominance — it’s monopolistic power.

If a small business told you:

“You have to pay me to allow you to keep doing something you’ve been doing legally for years — and you don’t get anything in return”…you’d call that a shakedown.

But when Visa and Mastercard do it?It’s called a "registration fee."

What Can You Do?

You can’t fight Visa and Mastercard directly — but you can choose a processor that doesn’t quietly let them get away with it.

At 2nd Amendment Processing, we’re upfront, unapologetic, and aligned with your values. We don’t hide behind corporate lingo. We’ll tell you exactly what the networks charge, why they charge it — and we’ll fight to keep your costs as low as possible while keeping your account protected.

Final Word

Visa and Mastercard don’t want you to ask questions. They want you to pay the fee and move on. If we keep calling it out for what it is — a legalized form of extortion against businesses — maybe, just maybe, we can start pushing back.

Until then, we’ve got your six.

Thomas Troyer

CEO

2nd Amendment Processing

Veteran-Owned