What is high risk merchant processing?

A high-risk merchant account is a type of business credit card processing that the payment processor deems to be at greater risk for fraud and chargebacks. Payment processors make this determination based on various factors, such as location, nature of business or financial history.

 

What is a high-risk merchant account and how it works?

In order to open up a large merchant account, you have to find acquiring banks that can underwrite your business. However, if you would like to make any sort of payment it is better to contact the right payment services provider with a reliable service.

 

What kind of products services are considered high risk by payment providers?

Some of the industries that are automatically flagged as high-risk by processors include: online gambling, casinos and gaming; telemarketing, VOIP (Voice over IP), calling cards; online medication providers for pharmaceuticals or drugs. These all have been deemed risky due to fraud concerns related to every industry's ability to produce valid identification documents in an untraceable manner from anywhere.

 

High-risk credit card processing fees

When your business falls to a category referred to as high-risk merchant accounts, this may not be your fault. Unfortunately, you normally pay for the same services significantly more than the companies which are high risk. With regards to high-risk merchant accounts, it doesn't always turn up as a disaster or a fluke. When setting up these types of accounts you need to remember that you can do business with an international audience which low-risk merchants can't do. However, that doesn't change the fact that you pay more when you can afford to be part of an audience as one paying less money.

 

What is a high risk business?

A high-risk business is a merchant who has higher financial instability. High risk businesses simply represent merchants with the capability of potentially facing bankruptcy or an inability to maintain steady revenue growth.

 

What is friendly fraud?

A chargeback can include poor customer service or the inability of a merchant to respond to customer claims. Some payment processing companies are now trying to curb the threat from criminal activity. Friendly fraud is the customer attempting a recharge because of confusion or a mistake. These are chargeback charges if you display instructions to return on your shop and website. Please print each document on one receipt so customers can have all the documents they need in their hands. If you want to stop customer care scams try to improve your service levels by taking a few extra steps. Take care of customers complain, and always go further to make their complaints heard.