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.
Industries with excessive chargebacks or fraud incidents
Your credit is really bad
Trial continuity business
Previous credit card processing is not good enough.
The high-risk merchant account categorization depends on your business’ industry. Regardless of your individual businesses’ track record. In addition, the high-risk category includes businesses that are declined by a previous credit card processors. And, businesses that are on the MATCH or TMF list. Also. the companies whose owners have bad personal credit or low credit scores or businesses outside the US.
