Are you a business owner and thinking of having a merchant account for online payment processing through credit/debit cards? Please go through this information before taking the next step.
There are categories of Merchant Accounts viz. High Risk Merchant Account and Low risk Merchant Account. So before you apply for merchant account you need to have proper information regarding which category your business falls in. Here we will tell you the difference between both the categories.
If your Business satisfies the following characteristics then you are applicable for a low risk merchant account.
- Less than $20,000 is processed by you in monthly period
- Very low preferably zero chargeback rate
- The country that you operate from is low-risk
- Average size of your ticket is less than $50
- Your Operations are based in low risk industry
Following Characteristics push you in High Risk Merchant Account category:
- If you are a Brand new business with no business history
- High Ticket Size and chargeback ratio
- Low reputation
- You as the owner of the business has low credit score
- Time limit of the service provided is very high
There is no need to worry in case your business comes under high risk category, you can always lower down the risk and become a Low Risk Merchant by reducing the ticket size to a lower prize and reduce the ratio of chargeback and prevent frauds in transactions.
The approval of low risk merchant account is quicker as compared to the approval to high risk merchant account.
In case you come across a financial institute offering Instant High Risk Merchant Account approval, stay alert as there no such term in Merchant Account Market.