Irrespective of the type of business you deal with, it is important to offer your customers the modes of payment beyond cash. Simply because other modes of payments through a seamless payment gateway is convenient and they also offer you a way to keep your customers happy. And, in order to do so, you must sign up with a reliable payment processor.
You may observe that such payment processors shall charge extra fees for processing along with some long-term fees from the merchants. This may negatively impact your business as your profits may reduce. But why does this happen? Let us tell you why.
It happens because your payments are falling into the high-risk merchant category. If you want to know what high-risk merchant accounts are and determine whether your business falls in the same category or not, read the following information.
What is a high-risk merchant account?
You can tag a high-risk merchant account as a status that payment processors assign to a merchant who wants to use their payment services. These payment processors mark certain accounts as high-risk, with a higher rate of chargebacks, frauds, or return volume.
Here are the reasons why a business is considered high-risk.
- Poor Credit Score: A poor credit score indicates that the individual or company doesn’t make regular and timely payments and thus, they have a bad credit history. So, with a poor credit score, it leads to a labeling a business as high-risk. So, high-risk travel merchant accounts might have poor credit score.
- New in the market: If your business is new in the market or have minimal history of payments, the payment processor might tag your account as high risk. It is simply because there is not enough information for the payment processor to verify.
- Industry is a high-risk one: Sometimes, merchants with excellent business histories and better credit scores can also be labelled as high-risk. It happens because they are operating from a high-risk industry. It is an industry where charge backs are more frequent or there is a high-risk of fraud.
- High-volume of transactions: The volume determining of transactions is dependent upon the kind of business and industry. However, if your payment processor has kept a limit of certain number of transactions and you exceed the limit, you will earn yourself the title of a high-risk merchant. So, this may be the reasons you are tagged amongst the high-risk travel merchant accounts.
- International Payments: You might be considered as a high-risk merchant account because you are selling products to and from different countries where the chances of fraud is more.
These are the reasons why a travel business may be named in the list of high-risk travel merchant accounts. Get your high-risk merchant account from us at affordable rates.
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