Merchant Account category High Risk or Low RiskPosted by Merchant Stronghold on December 16th, 2017 High risk merchant processing basically known as credit card processing is the handling of electronic transactions of the merchants. Merchant processing means getting sales information from the merchant, receiving authorization for the transaction, collecting funds from the issuing bank and sending payment to the merchants. Electronic payments are highly sensitive to fraud. Liability for misuse of card data can expose the merchant to significant financial loss.
Before you look for the payment gateway, you need to know the risk associated with the business. Be prepared before you approach the banks and gateways else you will end up with denials. Business life and financial stability, business model, billing method, products sold /services, and processing history pays an integral part in deciding whether payment gateway will be provided or not. Different banks and different payment gateway providers have different parameters, there are some general industries that come under high risk. These industries are High Risk Merchant: Auctions, cigarette, brooking, coupons, Debt collections, Horoscope, Lotteries and Memberships, Real estate, Vacation planners, VOIP services, selling of vitamin and supplements and many more industries. Apart from this if any business model is dealing with a card, not the present transaction that is considered as High risk merchant. The riskiest transactions are the one that is done over the phone and Internet and if the transaction is of the high amount and the business is of a kind that tends to generate complaints. That’s why an important part of applying for merchant services is revealing what kind of business you are. And if your business contains high risk, you will get multiple denials from the Banks and payment gateway providers. If you’re looking for any kind of information, you’re in the right place! Like it? Share it! More by this author |