How to Avoid a High-Risk Merchant Account

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How to Avoid a High-Risk Merchant Account
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Avoid a High-Risk Merchant Account
When you are signing up for a merchant account,
you need to mention the average transaction and
an estimated monthly volume. A High-Risk Merchant
Account will completely differ from a traditional
account. The numbers which you mentioned is for
your actual processing reference.There are two
ways to exceed these limits
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What is a High-Risk merchant account?
Each merchant processing company will calculate
risks differently. To consider your business
under a high-risk category different criterion
will play a significant role. In general, the
risk is calculated in terms of fraud and
chargebacks. More chargebacks will tend to be
more risk. High-Risk credit card processing is
just like fraud and chargeback on a transaction
that a business process. As we already said each
merchant processing companies will have a
different style in handling high-risk merchants.
If you process a large transaction or you exceed
your monthly limit, you will be labelled under
high-risk Merchant Account. If any batch out goes
higher on a single day than a mentioned amount,
it will be manually checked and move that account
to High-risk category.
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Following factors come under the high-risk
category

• Monthly Business Banking Balance
• Your Business Credit Score
• Your Business Processing History
• Recurring Billing- if your business allows
  recurring billing then you must be subjected to
  high chargebacks.
• Your Industry and Transaction Method
• Reason for Increase

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High-Risk Merchant Account Category
if your business has a minimum sales volume, make
it round for higher processing rates in exchange
for a minimum account fee. If you have a large
sales volume, argue for lower processing rates in
exchange for a higher account fee. This way you
can confirm that your business is set up for
success from the beginning, as its much harder
to re-settle further down the road.
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How Chargebacks and High-Risk account are
inter-related
A chargeback is one of the important things to
consider for categorizing merchant account under
High-Risk. Each merchant processing companies
will have a chargeback monitoring program. With
that program, they will categorize the high-risk
merchants who hold more chargebacks. An
individual chargeback fee for a high-risk
merchant is generally higher than the other
merchants. While high-risk merchants should
elevate their risk levels. They must also
maintain their chargebacks effectively. However,
by reducing your chargeback it is possible to
reduce your risk level. Merchant Industry is a
renowned Credit Card Processing Company in New
York. It offers you a customized solution that
must be able to accept challenges that vests with
high-risk merchant account.
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Conclusion
The process of setting up a high-risk merchant
account is certainly a bumpy road. But if you
follow these steps, you will be able to design
the perfect solution to carry your business to
profit.
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Thanks
Website www.merchantindustry.com Phone
1(866)-811-1005 Email Id info_at_merchantindustry.
com