Which category you fall in High Risk/Low Risk

High-risk merchant processing basically known as credit card processing is the handling of electronic transactions of the merchants. Merchant processing means getting sales information from the merchant, receiving authorization for the transaction, collecting funds from the issuing bank and sending payment to the merchants. Electronic payments are highly sensitive to fraud. Liability for misuse of card data can expose the merchant to significant financial loss.

High-Risk Merchant or Low Risk?

Before you look for the payment gateway, you need to know the risk associated with the business. Be prepared before you approach the banks and gateways else you will end up with denials.

Business life and financial stability, business model, billing method, products sold /services, and processing history play an integral part in deciding whether payment gateway will be provided or not.

Different banks and different payment gateway providers have different parameters, there are some general industries that come under high risk.

THESE INDUSTRIES ARE HIGH-RISK MERCHANT:

Industry -  Reason

Adult Industry- Because of regulations 

Financial Industry - Because of unpredictable nature 

Airlines - High chargebacks 

Online Gaming - Instability 

Law Firms - Survival Issue

There are dozens of others such as:-

Auctions, cigarette, brooking, coupons, Debt collections, Horoscope, Lotteries and Memberships, Real estate, Vacation planners, VOIP services, selling of vitamin and supplements and many more industries.

Apart from this if any business model is dealing with the card, not the present transaction that is also a High-risk merchant.

The riskiest transactions are the one that is done over the phone and Internet and if the transaction is of the high amount and the business is of a kind that tends to generate complaints.

That’s why an important part of applying for merchant services is revealing what kind of business you are. And if your business contains high risk, you will get multiple denials from the Banks and payment gateway providers.

For low-risk businesses, the fees are usually low. High-risk merchant accounts will not only have higher, but they will also include additional fees. Don’t be shattered, despite the risk involved we at Merchant Stronghold will assist you in getting the payment gateway. Get more information you can contact us directly - +1 (888) 622-6875.