Card payments dominate e-commerce but they’re not the only option — and for high-risk merchants, they shouldn’t be the only option. Diversifying into alternative payment methods (APMs) reduces dependence on a single acquiring relationship, lowers overall chargeback exposure, and opens access to customer segments that prefer or require non-card payment options. This page covers the most commercially relevant APMs for high-risk businesses and how DozyPay integrates them alongside card processing.
Why Alternative Payments Matter for High-Risk Merchants?
- Chargeback isolation: ACH, bank transfers, and cryptocurrency transactions have no chargeback mechanism in the same form as card payments. Shifting even 20–30% of transaction volume to APMs measurably improves your overall chargeback ratio on card transactions.
- Processing redundancy: A merchant account termination affects card processing only. If you have active APM channels, revenue continues while a replacement card account is arranged.
- Customer preference: Different customer segments have strong payment method preferences. Crypto users, bank-transfer-preferring B2B clients, and markets with low card penetration all represent revenue you leave on the table by offering cards only.
- Lower processing fees: ACH transactions typically cost $0.20–$1.50 per transaction compared to 2–4% for card payments. Crypto processing fees are typically 0.5–1.5%. At volume, the fee differential is significant.
Alternative Payment Methods Available Through DozyPay
Payment Method | Best For |
ACH / eCheck (US) | US businesses processing recurring payments, high-value orders, or B2B transactions. No chargebacks. Costs $0.20–$1.50 per transaction. 1–3 business days settlement. |
SEPA Direct Debit (Europe) | EU-based merchants and those with European customers. Bank-transfer recurring billing. Covers 36 countries using EUR. Low dispute rates vs. cards. |
Bitcoin (BTC) | Privacy-conscious customers, international buyers, markets with card restrictions. Auto-conversion to fiat available. No chargeback risk. |
Ethereum (ETH) | Faster confirmation than Bitcoin. Popular for adult, gaming, and digital content categories. Auto-fiat settlement available. |
USDT / USDC (Stablecoins) | High-value transactions where crypto volatility is a concern. USD-pegged value. Instant settlement between parties. |
Bank Wire Transfer | High-value B2B transactions and wholesale orders. No processing fee from card networks. Ideal for orders above $5,000. |
Local Payment Methods | Region-specific options (UPI for India, iDEAL for Netherlands, Boleto for Brazil, etc.) for merchants with significant traffic from specific markets. |
Recommended APM Strategy by Business Type
Business Type | Recommended APM Combination |
Online gambling / casino | Crypto (BTC, ETH, USDT) + bank wire for large withdrawals. Reduces card chargeback exposure on deposit transactions. |
Adult content / adult retail | Crypto + ACH for US customers. Discreet payment options preferred by a significant portion of adult content consumers. |
Forex / trading platforms | Bank wire + SEPA for EU clients + crypto for privacy-focused users. Reduces card exposure on high-value initial deposits. |
Subscription SaaS / services | ACH/SEPA for recurring billing. Eliminates subscription chargebacks on bank-transfer transactions. |
CBD / nutraceuticals | ACH for US repeat customers + crypto. Reduces card processor dependency in a frequently-declined category. |
IPTV / streaming | Crypto widely used by IPTV subscriber base. ACH for US subscribers. Reduces high card chargeback rates in this category. |
Frequently Asked Questions
Can ACH payments be charged back?
ACH payments can be returned (the ACH equivalent of a chargeback) but the return window and process is different from card disputes. ACH returns for ‘unauthorised’ transactions must be filed within 60 days. The return rate for legitimate ACH payments to known customers is significantly lower than card chargeback rates. ACH is particularly strong for subscription merchants where the customer has provided explicit recurring payment authorisation.
How long do ACH and bank transfer payments take to settle?
Standard ACH transfers settle in 1–3 business days. Same-day ACH is available for an additional fee and settles within the same business day if initiated before 2:45 PM ET. Bank wire transfers are typically same-day for domestic transfers and 1–2 days for international. Cryptocurrency settlements to fiat, via DozyPay’s auto-conversion, follow your standard settlement schedule (T+1 or T+2 to your bank account).
Do customers need to do anything differently to pay via ACH?
ACH payments require the customer to provide their bank account number and routing number rather than a card number. For recurring billing, this is typically captured once during onboarding and used for all subsequent charges. For one-time payments, Plaid and similar bank verification services can link a customer’s bank account in under 60 seconds without them needing to look up their routing number.
What cryptocurrencies does DozyPay support?
DozyPay supports Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), Litecoin (LTC), and Ripple (XRP) as standard. Additional cryptocurrencies are available on request. All crypto payments auto-convert to fiat (USD, EUR, or GBP) unless you elect to hold crypto balances.
Can I offer multiple payment methods at the same checkout?
Yes. DozyPay’s checkout supports card payments, APMs, and crypto in a single integrated checkout experience. You control which methods are displayed, and the checkout automatically shows the most relevant options based on the customer’s location and device.
Add alternative payment methods to your checkout at dozypay.com/contact — ACH, crypto, and local methods available. |