Businesses are considered heavy risk when they have an increased charge back rate and accept card-less payments such as online payments, phone payments, etc. Some kinds of companies are riskier than the others such as telemarketers, gaming online and cafe websites, adult companies, internet auctions, e-cash businesses, advance booking web sites, etc. Charge card processing agencies charge higher rates for services to businesses using a high risk profile.
What makes an organization dangerous?
Heavy risk companies are the kind that:
possess a poor credit rating
have high turnover
have high customer dissatisfaction rates
offer money-back guarantees
have business processes that can make them susceptible to visa or mastercard fraud
Can a higher risk business have a charge card processing solution?
Just because an organization is dangerous does not necessarily mean bank card processors will not likely consider this. Merchants have to look around for agencies that really work with high risk businesses. A very high-risk business usually needs to pay a much higher rate for a processing solution than other low risk businesses. The high risk merchant accounts looks into:
length of time in running a business
amount of charge backs
If the business continues to be running for a time, vendors assume you are aware of charge card fraud and may recognize a prospective threat. Furthermore, if charge backs are less, the processor assumes your organization though high risk has to be doing something right. Some payment processing firms have a reserve figure to protect themselves from loss. The volume of reserve varies with the particular business and the risk involved.
If a business accepts online payments with an ecommerce application, it is actually a target for fraud. Good internet credit card processing companies have systems in place to detect suspicious activity and potentially costly fraudulent transactions. The transactions can be held back for manual approval. Many credit processing vendors call customers or even the business to check the genuineness of the transaction before processing it.
Many payment gateways offer an Address Verification Service (AVS). The address submitted having an order is compared with that on file for the bank card holder. Doubtful orders dexppky59 held back for manual review.
Many internet visa or mastercard processing companies offer advanced services like Ip blocking, shipping address verification filters, IP shipping address mismatch filters, CCV handling filters, amount filters, etc. The greater sophisticated and secure the answer, higher is its cost.
All credit payment processors will not be accessible to utilizing high-risk businesses, but there are numerous which will, albeit at a higher cost. Amongst dangerous businesses, credit processing agencies give preference to those that have experienced business for a while and show below average charge backs for your kind of business. A dependable and secure payment processing solution lessens the perils of fraud and protects the company and its customers from loss.