High Risk Merchant Account and How it works?
A high risk merchant account is required by businesses that are at a higher risk of chargebacks and frauds. High-risk merchants often pay more processing fees than usual to reimburse for the risk involved in their business. Let’s understand more about high-risk merchant account and how it works. A payment processor marks a merchant’s account high risk if your business is at high risk of returns, fraud and chargebacks. There are plenty of reasons this could happen—you might be a new business that hasn’t processed payments before or has a likelihood of fraud due to controversial products. A high-risk merchant account is required to pay high processing fees to compensate for the risks. Reasons your business may be considered high risk: There could be many reasons a payment processing platform might consider you a high-risk merchant. While some reasons are obvious, others could be more nuanced. Every provider has a different set of standards fo...