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How we classify businesses

Risk Tiers

Pagoramp profiles every business into one of three risk tiers based on industry and KYB information, then routes payments to the partner(s) suited to that tier. Here's what changes at each level.

Low risk

Example industries
SaaS & software subscriptions, digital products & downloads, online courses & education, B2B agencies & professional services, freelance services with purely digital delivery
Onboarding
Self-serve signup → basic KYB → automated verification → live

Medium risk

Example industries
E-commerce (physical goods), content-creator & tipping platforms, online communities & membership sites, general marketplaces, subscription boxes
Onboarding
Self-serve signup → basic KYB → automated verification → live

High risk

Example industries
Adult content, dating, crypto services, online gaming, nutraceuticals, firearms, debt collection, travel, vape, CBD, credit repair
Onboarding
Self-serve signup → basic KYB → instant access to crypto/local rails → extra KYB + manual underwriting for cards (24–48h)

All tiers get instant settlement on crypto and local payment rails. Card processing for High risk merchants goes through further KYB and manual underwriting before going live, reflecting the extra diligence our sponsor banks and processors require for those categories.

This page covers what changes tier to tier. For the full list of categories Pagoramp doesn't support under any tier, see the Acceptable Use Policy.