Everything you need to know about being a High Risk Merchant

It’s a highly known fact that credit card transaction processing is one of the utmost important aspects of running an online business. If you’re looking to setup this key element for your business, you must be needing an account with an acquiring bank. One of the complicated aspects about this process is the lack of awareness among the online merchants about the differences between high risk merchant services and low risk merchant services. Both these business models have certain pros and cons each, but it’s very important to educate yourself about this topic and choose the right decision.

High Risk vs Low Risk accounts:

If you want to go with the low risk merchant account, you are responsible for paying appropriate fees for processing credit card payments. Although the low risk account fee is substantially low, you need to be prepared for this. If the sales volume of your business is equal to or less than $20,000 and your ticket size is $50 or less you will be considered as low risk merchant by the banks. Along with those two factors, you must also use 3D secure process for the transactions in order to combat credit card frauds.

If you prefer having a high risk merchant account, you need to find a processor and acquirer. If your business get more chargebacks, your business is likely to be considered as high risk. But there’s a catch here, which is there are several perks that come with a high risk merchant account. With a high risk merchant account, you will have the privilege to a few premium options such as recurring billing, Multi-currency transaction options, and increased sales volume allowances.

Every merchant must consider the above-mentioned factors and make the right decision by choosing the appropriate account for their business.