Businesses are considered high risk when they have a higher charge back rate and accept card-less payments for example online payments, phone payments, etc. Some kinds of companies are riskier as opposed to others for example telemarketers, internet gamb-ling and casi-no sites, adult providers, internet auctions, e-cash businesses, advance booking websites, etc. Visa or mastercard processing agencies charge higher rates for their services to businesses with a heavy risk profile.
Just because an organization is heavy risk does not always mean high risk credit card processors is not going to think about it. Merchants must look around for agencies that really work with good risk businesses. A high-risk business usually has got to pay a much higher rate for any processing solution than other low risk businesses.
In case the business continues to be running for a time, vendors assume you know about credit card fraud and will recognize a prospective threat. Additionally, if charge backs are less, the processor assumes your organization though dangerous needs to be doing something right. Some payment processing firms have a reserve total protect themselves from loss. The amount of reserve varies with the kind of business and the risk involved.
If a business accepts online payments via an ecommerce application, this is a target for fraud. Good internet visa or mastercard processing companies have systems in place to detect suspicious activity and potentially costly fraudulent transactions. The transactions can be held back for manual approval. Many credit processing vendors premierne customers or the business to check the genuineness in the transaction before processing it.
Many payment gateways provide an Address Verification Service (AVS). The address submitted with an order is in contrast to that on apply for the credit card holder. Doubtful orders are held back for manual review.
Many internet visa or mastercard processing companies offer advanced services such as IP address blocking, shipping address verification filters, IP shipping address mismatch filters, CCV handling filters, amount filters, etc. The more sophisticated and secure the solution, higher is its cost.
All credit payment processors usually are not open to utilizing dangerous businesses, but there are several who can, albeit in a higher cost. Amongst dangerous businesses, credit processing agencies give preference to those that have been in business for some time and show less than average charge backs for your type of business. A trusted and secure payment processing solution decreases the hazards of fraud and protects the organization as well as its customers from loss.