Companies are considered high-risk in case they have an increased charge back rate and accept card-less payments such as online payments, phone payments, etc. Some kinds of businesses are riskier as opposed to others like telemarketers, online gamb-ling and casi-no web sites, adult service providers, internet auctions, e-cash businesses, advance booking web sites, etc. Charge card processing agencies charge higher rates for their services to businesses having a dangerous profile.
Simply because an enterprise is dangerous does not mean high risk credit card processing merchant account is not going to consider it. Merchants should check around for agencies that work with good risk businesses. An increased-risk business usually has got to pay a lot higher rate for a processing solution than other low risk businesses.
In the event the business has been running for some time, vendors assume you understand credit card fraud and might recognize a prospective threat. Furthermore, if charge backs are less, the processor assumes your business though high risk needs to be doing something right. Some payment processing firms keep a reserve add up to protect themselves from loss. The level of reserve varies with the kind of business and also the risk involved.
In case a business accepts online payments through an ecommerce application, it is actually a target for fraud. Good internet credit card processing companies have systems set up to detect suspicious activity and potentially costly fraudulent transactions. The transactions can be held back for manual approval. Many credit processing vendors premierne customers or perhaps the business to discover the genuineness of your transaction before processing it.
Many payment gateways have an Address Verification Service (AVS). The address submitted by having an order is in contrast to that on file for the visa or mastercard holder. Doubtful orders are held back for manual review.
Many internet credit card processing companies offer advanced services such as Ip blocking, shipping address verification filters, IP shipping address mismatch filters, CCV handling filters, amount filters, etc. The more sophisticated and secure the solution, higher is its cost.
All credit payment processors are not available to working with heavy risk businesses, but there are lots of who can, albeit at the higher cost. Amongst dangerous businesses, credit processing agencies give preference to people that have experienced business for some time and show lower than average charge backs for this kind of business. A reliable and secure payment processing solution reduces the hazards of fraud and protects the business as well as its customers from loss.