Companies are considered dangerous when they have a high charge back rate and accept card-less payments including online payments, phone payments, etc. Certain types of companies are riskier than others including telemarketers, gaming online and cafe internet sites, adult agencies, internet auctions, e-cash businesses, advance booking sites, etc. Visa or mastercard processing agencies charge higher rates for their services to businesses with a high risk profile.
Exactly what makes an enterprise high risk?
Dangerous companies are the type that:
possess a poor credit rating
have high turnover
have high customer dissatisfaction rates
offer money-back guarantees
have business processes that make them prone to credit card fraud
Can a higher risk business have a credit card processing solution?
Even though a company is heavy risk does not necessarily mean charge card processors is not going to consider this. Merchants need to look around for agencies that work with good risk businesses. A high-risk business usually has got to pay a lot higher rate for the processing solution than other low risk businesses. The high risk merchant accounts looks into:
time period in running a business
volume of charge backs
When the business has become running for some time, vendors assume you are familiar with credit card fraud and will recognize a prospective threat. Additionally, if charge backs are less, the processor assumes your small business though heavy risk has to be doing something right. Some payment processing firms have a reserve amount to protect themselves from loss. The level of reserve varies with the kind of business and also the risk involved.
When a business accepts online payments using an ecommerce application, it is a target for fraud. Good internet visa or mastercard processing companies have systems in position 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 determine the genuineness of your transaction before processing it.
Many payment gateways come with an Address Verification Service (AVS). The address submitted having an order is in contrast to that on file for the charge card holder. Doubtful orders dexppky59 held back for manual review.
Many internet charge card 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 number of sophisticated and secure the remedy, higher is its cost.
All credit payment processors usually are not open to dealing with heavy risk businesses, but there are numerous who will, albeit in a higher cost. Amongst high risk businesses, credit processing agencies give preference to those that have been in business for quite a while and show under average charge backs for this type of business. A trustworthy and secure payment processing solution lessens the perils associated with fraud and protects this business and its customers from loss.