Finimpact

FAQs

How do payment processors decide if your business is high-risk?

Payment processors assess a business's risk level based on industry type, credit history, chargeback ratios, and fraud risk. Based on this assessment, payment processors may classify the business as low-risk or high-risk and apply different fees and requirements accordingly.

What happens after a business is deemed “high risk”?

Once a business is deemed high risk, it may face stricter underwriting standards, higher transaction fees, rolling reserves, and shorter contract terms. Payment processors may also monitor high-risk merchants more closely for signs of fraud or excessive chargebacks.

What should high-risk merchants expect from payment processing?

High-risk merchants can expect payment processing providers to offer customized solutions that cater to the specific needs of their business, including chargeback prevention tools, fraud protection, and flexible contract terms. However, they may also face higher transaction fees and stringent underwriting requirements.

How can I protect my high-risk merchant account from suspension?

To protect your high-risk merchant account from suspension, maintain accurate records, manage chargebacks proactively, implement fraud prevention measures, and work with a reputable payment processing provider specializing in high-risk industries. Staying up-to-date with changing regulations and your industry's compliance requirements is also essential.

About the Author

Bobby Samuels

Bobby Samuels

Writer and Business Communications Consultant

Bobby's introduction to stock options at a hi-tech firm left him perplexed and determined to expand his knowledge in finance. He pursued a Master's degree in Finance at Harvard University. His diverse client base that includes CEOs, CFAs, private equity executives, venture capitalists, global investment firms, real...

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