For a trading business in this day and age, transaction processing does not have to end with your jurisdiction. Often, you will receive orders from customers residing in other countries. To meet these types of customers, you need to facilitate virtual transactions, where customers would make payments for your goods without making physical contact with you.
What is a low risk merchant?
Understanding what a high risk trading business is requires first understanding what low risk. And as the name suggests, a low risk trader is a trading business that carries a considerably lower degree of risk. As compared to a high risk merchant account, low risk accounts often attract lower bank fees and charges. And their requests are mostly granted, unlike high-risk merchants, who are often declined. But what types of traders are considered low risk? Banks will consider your e-commerce a low risk business if it meets the following conditions:
What is a high risk trading?
Unlike low risk merchants, there are no specific criteria for classifying businesses as high risk merchants because different payment processors use a different set of criteria. However, from a business perspective, most cordless merchants are considered high risk. This includes businesses like Ecommerce Stores, Forex, Gaming, Financial Services, Travel, and more. Generally speaking, however, two of the biggest criteria used to rank business chargebacks and potential for fraud are high risk. If your business receives a lot of chargebacks or is overly susceptible to fraud attacks, it will most likely be considered a high risk merchant.
Due to the perceived risk associated with high risk merchants, the only set of institutions willing to work with them are primarily acquirers and processing services, many of whom charge huge fees to accept the risk liability they take. However, there are still payment processors, like iPayTotal, that are ready to help high-risk businesses accept virtual payments without paying through their noses. They provide end to end payment solutions for high risk merchant accounts businesses around the world. Through their healthy relationships with many national and international Acquisition Partners, they are able to offer debit, credit and Echeck processing for almost any industry considered high risk.
Reduce the risk for your merchant
Of course if your business is run in a country or industry that is considered risky, such a business will undoubtedly be classified as high risk. However, you must remember that the rate of chargebacks and fraud cases occurring in and around a business can also help label a trader as high risk. They offer you a cost effective international financial solution. Different categories of companies can open a merchant account with relevant department: whether they represent a low or high risk, whether they are companies or corporations or even micro-entrepreneurs.
Why do you need a merchant account?
Credit / debit cards are the most common electronic payment methods. By offering the possibility of purchasing with a card on your online store, you guarantee yourself an increasing profit.
How to get a merchant account?
Fill out the request form. You will receive our response within 48 hours. You will need to send us some additional documents, make sure your website meets all the requirements, and the installation can begin.