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Is your business considered a High Risk Merchant?

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For a trading business in this day and age, transaction processing does not have to end with your jurisdiction. Often, you will receive orders from customers residing in other countries. To meet these types of customers, you need to facilitate virtual transactions, where customers would make payments for your goods without making physical contact with you.

What is a low risk merchant?

Understanding what a high risk trading business is requires first understanding what low risk. And as the name suggests, a low risk trader is a trading business that carries a considerably lower degree of risk. As compared to a high risk merchant services, low risk accounts often attract lower bank fees and charges. And their requests are mostly granted, unlike high-risk merchants, who are often declined. But what types of traders are considered low risk? Banks will consider your e-commerce a low risk business if it meets the following conditions:

Your maximum monthly activity

Income is $ 20,000

Your average ticket size is $ 50

You use anti-fraud filters like

Secure 3D to prevent fraudulent activity on your store / site.

Your payment processor also manages your payment page. Your business operates in a low risk industry like home appliances, groceries, food, fashion, clothing, books, pet, etc. Your business mainly exists in low risk regions like US, Canada, Australia, South Korea, Singapore or any EU country.

What is a high risk trading?

Unlike low risk merchants, there are no specific criteria for classifying businesses as high risk merchants because different payment processors use a different set of criteria. However, from a business perspective, most cardless merchants are considered high risk. This includes businesses like eCommerce stores, Forex, gaming, financial services, travel, and more.

So let’s say

You want to get a forex merchant account for your forex trading site, you can expect the payment processing department to consider you a high risk merchant. Generally speaking, however, two of the biggest criteria used to rank business chargebacks and potential for fraud are high risk. If your business receives a lot of chargebacks or is overly susceptible to fraud attacks, it will most likely be considered a high risk merchant.

Simply put, the more chargebacks on your ecommerce store, the higher the risk you carry. Obtain payment service for your high-risk merchant Due to the perceived risk associated with high risk merchants, the only set of institutions willing to work with them are primarily acquirers and processing services, many of whom charge huge fees to accept the risk liability they take.

However, there are still payment processors, like iPayTotal, that are ready to help high-risk businesses accept virtual payments without paying through their noses. They provide end to end payment solutions for high risk merchant accounts businesses around the world. Through their healthy relationships with many national and international Acquisition Partners, they are able to offer debit, credit and Check processing for almost any industry considered high risk.

Reduce the risk for your merchant

Of course if your business is run in a country or industry that is considered risky, such a business will undoubtedly be classified as high risk. However, you must remember that the rate of chargebacks and fraud cases occurring in and around a business can also help label a trader as high risk. Therefore, you should strive not to place your business in the high risk category simply because at some point you have allowed a scammer to invade your site or not handle effective chargebacks. Always find new ways to minimize your chargebacks and mitigate the risk of fraud in your business. By doing so you will reduce your level of risk. I don’t know how to properly handle chargebacks? Can’t I stop scammers from attacking your store? Do not hesitate to contact iPayTotal today; they come on the perfect solution for you!