This interview is with Kyle Hall, CEO & Founder at PulseCRM, PayKings.

Kyle Hall, CEO & Founder, PulseCRM, PayKings

Kyle, can you tell us a bit about your journey to becoming an expert in high-risk payment processing? What sparked your interest in this niche area?

I actually started my career as a developer working on payment-gateway technology, which is where I first got exposed to the challenges that come with processing payments for high-risk industries. That technical background really helped me understand the complexities of payment gateways and how they function behind the scenes. Over time, I saw how underserved many businesses were, especially in sectors like e-commerce, tech, and other high-risk spaces. That’s what sparked my interest in building solutions that would cater specifically to these industries. Through that journey came PayKings, which specializes in helping these businesses manage risk, navigate compliance, and ultimately succeed despite the barriers that traditional payment processors often place in their path. I wanted to provide a tailored approach to payment processing that made growth easier for businesses typically labeled as high-risk. Along the way, I also founded PulseCRM, which complements our work by offering a CRM platform that helps businesses manage their merchant processing companies more effectively. My goal has always been to simplify what can feel like a very complicated world of high-risk payment processing and customer management, so these businesses can focus on scaling rather than worrying about how they’ll take payments.

What were some of the pivotal moments in your career that solidified your expertise in handling the complexities of high-risk payments?

One pivotal moment for me as CEO came when PayKings was experiencing rapid growth, and we struggled to keep up with the increasing demand. We had to shift our focus to automation and operational efficiency to sustain that growth. That effort was instrumental in helping us achieve our ranking on the Inc. 5000, as it allowed us to scale while maintaining high-quality service. This challenge also inspired the creation of PulseCRM, which was born out of a need to solve the operational bottlenecks we experienced firsthand. PulseCRM is designed to streamline the entire workflow for merchant service businesses—from merchant onboarding and underwriting to residual management. As we scaled, managing these processes manually became a major pain point, so PulseCRM was built to automate these tasks, reduce errors, and improve speed. By automating merchant onboarding, underwriting approvals, and residuals tracking, PulseCRM not only addresses the complexity of these workflows but also integrates them into a seamless platform. It gives businesses a centralized dashboard to manage operations, eliminating manual tasks and allowing teams to focus on scaling and improving their service offerings. PulseCRM’s capabilities have directly addressed the scaling challenges we faced at PayKings, making it an essential tool for ISOs looking to grow efficiently without getting bogged down by operational inefficiencies.

Many businesses struggle to understand why they’re categorized as ‘high-risk.’ Can you shed some light on the factors that often lead to this designation?

Sure, it’s something we deal with often. Businesses are categorized as “high-risk” for a variety of reasons, but it typically boils down to three main factors: the nature of the industry, financial volatility, and regulatory complexity. Industries like adult entertainment, CBD, and e-commerce tend to have higher chargeback rates or are more prone to fraud, so they get flagged as high-risk. Recurring-billing models or industries that deal with legal gray areas also raise red flags. Ultimately, the designation comes down to how much potential financial or reputational risk a processor is willing to take on. When a business has high chargebacks or operates in a sector that may have stricter regulations or heightened fraud potential, processors see it as more volatile. That volatility leads to extra scrutiny from payment providers, and that’s why they often end up in this high-risk category. It’s not always about the business itself doing something wrong, but rather how external factors, like industry reputation or market trends, affect its risk profile.

From your experience, what’s the biggest misconception businesses have about high-risk payment processing?

The biggest misconception businesses have about high-risk payment processing is thinking that being labeled high-risk means they’re doing something wrong. In reality, it’s more about how the payment processors assess potential financial risk. For example, we process payments for a yacht-charter company where the average transaction size is between $50,000 and $250,000. Even though the business is legitimate and runs smoothly, the risk of a chargeback on such a large transaction, however unlikely, places them in the high-risk category due to the potential financial impact on the processor.

What advice would you give to a business owner who has just been classified as ‘high-risk’ and is feeling overwhelmed by the prospect of finding a payment processor?

If you’ve just been classified as ‘high-risk,’ my advice is not to panic—it’s more common than you think. Start by understanding why you’re labeled that way, whether it’s due to industry, transaction size, or chargeback potential. Be honest with your payment processor about your business model and challenges. It’s important to find a processor that fits your needs and understands your business. Look for one that specializes in high-risk industries; they’ll offer the stability and support you need to keep your operations running smoothly long-term.

Chargebacks are a major concern for businesses in high-risk industries. Can you share a specific strategy that has proven effective in mitigating chargeback risks?

Chargebacks are a significant challenge in high-risk industries, but there are effective strategies to mitigate them. One that we’ve seen has worked well for many of our customers is clear, upfront communication with customers. Ensuring transparency around billing practices, return policies, and product descriptions helps set the right expectations. Additionally, investing in fraud-detection tools is crucial. These tools allow us to identify suspicious transactions before they escalate into chargebacks. Combining strong customer service with proactive fraud-prevention measures has been key in reducing chargeback risks and maintaining better customer relationships. We wrote a very detailed article about it here.

Security is paramount when it comes to payments, especially in high-risk sectors. What measures should businesses take to ensure secure transactions and protect both themselves and their customers?

Security is paramount, especially in high-risk sectors, and businesses need a multi-layered approach to protect both themselves and their customers. First, using SSL/TLS encryption for data in transit is essential. Use a gateway that supports tokenization at the network level, as it replaces sensitive data with a token, ensuring the customer’s payment information is never stored directly. Additionally, businesses should ensure PCI compliance, implement fraud-detection tools, and use two-factor authentication (2FA) to secure transactions. Educating both customers and employees on best practices also helps reinforce overall security.

Looking ahead, what emerging trends and challenges do you see on the horizon for high-risk payment processing?

Looking ahead, I see a few key trends and challenges shaping the future of high-risk payment processing. First, increased regulatory scrutiny will continue to be a challenge, as more governments introduce tighter compliance requirements, especially for industries like CBD, cryptocurrency, and other emerging markets. Additionally, fraud prevention will remain at the forefront, with evolving threats pushing businesses to adopt more-advanced security measures like AI-driven fraud detection. Another trend is the growing demand for faster payments and real-time processing, which will require high-risk processors to improve infrastructure without compromising security. Lastly, the rise of alternative payment methods, such as cryptocurrencies, is something we’ll need to watch closely, as they bring both new opportunities and regulatory hurdles. Businesses operating in high-risk sectors will need to stay agile, invest in technology, and ensure they’re working with processors that understand the evolving landscape.

For businesses seeking payment solutions tailored to their unique needs, what key factors should they prioritize when evaluating potential providers?

When evaluating payment providers, it’s essential to read reviews and gather feedback from other businesses in similar industries. Reviews offer valuable insight into real-world experiences, from customer-support quality to the transparency of fees and reliability of service. Look for providers with a strong reputation for working with high-risk industries and solving the specific challenges you face. Reviews will give you a better idea of how they handle chargebacks, security, and scalability, helping you make a more informed decision when selecting the right partner for your needs.

Thanks for sharing your knowledge and expertise. Is there anything else you’d like to add?

Thanks for the opportunity to share my insights! If there’s one more thing I’d emphasize, it’s the importance of choosing a payment processor that truly understands your business. Don’t settle for a one-size-fits-all solution—find a partner who can grow with you, offer tailored solutions, and provide solid support. And remember, always do your due diligence by reading reviews and talking to other businesses in your industry. The right provider can make a huge difference in your ability to manage payments efficiently and scale smoothly.