What Industries are Considered High Risk?Posted by Merchant Stronghold on November 17th, 2017 Online Merchants may never think their business is risky. The merchant is offering a regular item or service, following every rule and regulation then why it might be viewed as risky? Usually, a merchant discovers that his area of business is considered a medium or high risk business when he tries to set up a payment gateway and is rejected in the first go as he is required of a high risk merchant account. It can come as a significant surprise to many of them. Shockingly, a few industries are more inclined to refunds and chargebacks than others. This implies a great deal of money which further ruins the records of the account. And therefore, it is not good for either merchant or the payment service provider. Clearly, both the parties would favor the money going one way– into the account! The merchant is most likely not astounded to hear that specific industry are viewed as high risk and improbable to discover a bank or payment service provider. The merchant in certain cases is certain to to possess risk if he’s offering an item or service which isn’t legal in all states, for example, weapons or adult services. In addition to the subject of legitimacy, the banks and installment organizations also reject the application if the product or brand image matches to a specific industry/brand. A few areas where high risk seems harmless. For example- Why online air ticketing is considered as high risk business? One of the factors that makes a field risky is long accomplishment duration, i.e. when there’s a long period of time between an item or service purchased and conveyed. This implies that a refund or chargeback could take place in quite a while after the genuine payment has occurred. Like it? Share it! More by this author |