What is high risk merchant account, your payment processor has identified your company as having a higher risk of chargebacks or fraud. To offset the risk the payment processor is taking on, high-risk merchant accounts pay higher processing costs. This article discusses what is high risk merchant highriskpay.com and what it entails for your company.
What is high risk merchant highriskpay.com?
When a payment processor determines that your company account is more likely to have chargebacks, fraud, or a significant number of returns, they classify the account as risk. This may be the case for a variety of reasons
such as the fact that you are a new merchant that has never accepted payments
before or if your industry is regarded as what is high merchant highriskpay.com
and has a high probability of fraud (e.g., polarising products). In order to cover this risk, processing costs are greater for high-risk merchant accounts.
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Higher Fees Result From Risk
Although each credit card processing platform is unique, risk accounts will always be charged more. Processing costs for all transactions will often be higher and, in some cases, double those of low-risk merchant accounts. Although chargeback fees (fees you pay when a customer challenges a transaction directly with their credit card) are also paid by low-risk merchants, high-risk merchants typically pay larger chargeback fees.
A high-risk merchant can be forced to sign a contract with longer terms, pay a penalty for ending it early, or pay a regular monthly or annual cost.
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