The level of perceived risk of fraud and chargebacks will determine the costs of a merchant account, with higher risk merchant accounts incurring higher charges.
In order to determine the level of merchant account risk, an eCommerce business will undergo what is akin to a credit score. This evaluates the potential for fraud but also the possibility of a greater than average occurrence of chargebacks. It’s surprising to discover what industries are included in the higher risk categories.
Whilst gaming, dating and adult websites are obvious high risk industries, other more traditional businesses also fall into this category. These include
- travel services
- holiday companies
- accommodation websites
Factors affecting perceived merchant account risk
A major factor which affects merchant account risk rating is the time between order and fulfilment. For example, any type of transaction which involves holiday arrangements are often booked months in advance, leading to higher risk of cancellation. It follows that this poses a higher risk to payment processing.
If your business is categorised as a high risk it is important to partner with a payment services company which specialises in high risk merchant accounts. A payment service provider with experience and knowledge in high risk credit card processing will help minimise risks, guard against fraud, and guide you to the best merchant accounts for your business needs.
How to get the best high risk merchant account
With specific expertise in high risk payment processing, providers such as North Payments are different and work with multiple banks around the world to provide a widespread choice of credit card acceptance and multi-currency solutions. As many high risk industries operate on a global scale these considerations should be forefront in decision making when choosing a service provider.
Specialist high risk merchant service providers have solutions to help businesses, ensuring they don’t suffer from the issues surrounding high risk payment processing. The goal is to minimise the risks, provide sophisticated anti-fraud measures and offer secure, problem free services for receiving online payments.
Don’t let being high risk put you off: approval can be easier than you may at first think, particularly if you utilise the services of specialist in this area. Appropriate payment processing will help your business survive and thrive. If you want to discuss your individual needs or ask about the specific high risk services that we offer at North Payments please contact us today.