May14
Author Nikki with WMS
What makes a merchant account high risk?
This depends on your service provider although providers have formulated guidelines to categorize certain business types. Bank providers will be looking at several different types of things:
Chargebacks- Certain businesses types have a high ratio of chargebacks
Credit card fraud- Some businesses are more vulnerable to fraud
Legality- This always poses a high risk for business that may be considered ‘closely- related to being illegal’ or questionable
Marketing- Products or a service that may promise quick results that the consumer may be easily unsatisfied with puts this category in a higher risk
Target Market- International markets can be considered higher risk
Business Operation- Operation type will have an affect on the risk factor: telemarketing, multi-level marketing, third-party orders
Type of Merchant Account- Wireless or internet processing is always going to be high risk vs. a merchant account in which the card is presented (Card Present Merchant Accounts)
www.worldwidemerchantservicesconnect.com
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