I browse around and found that some type of business will be categorized as "High Risk". What kind of business categorized in this type? Please share. Thank you!
You are right but payment processor technology, money-back guarantee, etc aren't very important criteria. High risk businesses are investment programs where the owner requests people to deposit money so he can make investments and return a share of the profit. That's HIGH RISK!!aksu123 said:There are several factors that determine if a business is to be considered high risk. The main reason is the type of business. Risk is based on the merchants probability of chargebacks, returns, the businesses history, and the planned method to accept credit cards. Yes, returns are a large factor in determining the risk of a certain business type. Processors assume that if there is a lot of returned merchandise, then the merchant isn’t doing something right.
Often businesses run into the problem of being labeled as a high risk business for processing electronic payments and are forced into unconventional processing agreements. Many business owners have no idea that their industry falls into a high risk category.