Let’s Understand the High-Risk Merchant
it is difficult to start a business, as well as applying for a merchant account. The merchant accounts get approval or disapprove from the risk departments. While considering the business to be high-risk business or Low-risk. There are few reasons why any business can be in high-risk business.
Risk factors that make a business HIGH RISK
- You have lost your previous merchant account due to high chargeback ratio.
- Questionable sales and marketing tactics.
- Potential legal and financial liability.
- Your credit is really bad.
- Industries with excessive chargebacks or fraud incidents.
- Trial continuity business.
- Previous credit card processing is not good enough.
- You’ve been branded as a terminated merchant (TMF).