According to 2021 statistics, digital commerce will have an estimated total transaction volume of US$4,176,874 worldwide. While low-risk businesses may have an easier approval process when it comes to working with payment processors, high-risk merchants may have to turn to high-risk merchant payment processors for specialized services.
Typically high-risk businesses tend to be prone to higher levels of chargeback than average. Some popular industries associated with high-risk businesses include the airline industry, electronics, gaming, e-books, casinos, furniture sellers, and debt collection agencies. If these companies fail to abide by their merchant contract, it can be terminated.
Often, high-risk businesses tend to struggle with certain financial issues that can make it more difficult for them to qualify for a low-risk merchant account. This can include:
Unfortunately, many high-risk merchant processors tend to charge higher than average fees to compensate for higher levels of risk in terms of payment processing. In the event that a high-risk business wants to end its contract early or for example, goes over the prescribed percentage of chargebacks, they may end up on a blacklist.
Companies that end up on the Terminated Merchant File (TMF) or MATCH list may have an even more difficult time getting approved for a new merchant account. This is especially true if they are involved in illegal or fraudulent activity such as money laundering.
As a result, it’s best to read the fine print carefully when working with a high-risk merchant and abide by their terms as much as possible. Read on to learn more about the average cost of receiving digital payments at Processing Card today!
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
