Low And High Risk Merchant Account

Discussion in 'Credit Card Processing' started by margret, Mar 2, 2021.

  1. margret

    margret Member

    A merchant having a high risk of fraud and chargebacks is classified as a high-risk merchant. A high-risk merchant has to pay a considerably higher amount for the same services than low-risk merchants because banks have to use more resources and face higher risks when onboarding high-risk businesses.

    Difference between low risk and high-risk merchant accounts

    Low-risk accounts have a zero or low chargeback ratio, whereas high-risk accounts have bad credit history and excessive chargebacks.

    High-risk merchants require services that offer them secure, faster, reliable, and low-rate services to accurately manage their accounts and operations. A trustworthy low-rate merchant service provider can reduce the risk of frauds and chargebacks and ensure high trading volumes.
     
  2. Charles T

    Charles T Administrator

    Thanks @margret for bringing this up! That's useful background information on merchant account categorization.
     

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