High & low risk clients
High-risk clients, in the credit card processing industry, are anyone operating websites that fall into such categories as adult, gambling, travel, auctions, discount services, bail bond issuers, medical discount programs, extended warranty/protection services, furniture/home improvement, gift certificates, nutraceuticals, memberships/subscriptions, prepaid phone cards, ticket brokers, etc. that have higher than usual chargeback volumes.
Chargebacks usually happen due to fraud or a high-level of refund activity. Dealing with chargebacks for high-risk merchants consumes more work than low-risk Merchants, so the processing fees are different.
Low-risk merchants are anyone who usually has much lower chargeback volumes, due to a higher satisfaction of the end-user (the buyer of the product/service). But there are still chargebacks in every industry. Low-risk merchants usually fall into an e-Commerce category with online shopping carts who sell regular products such as the ones sold in your local supermarket or online stores that sell authentic sunglasses (replicas fall into high-risk category), cosmetics, footwear, clothes etc.
These above listed categories are just a few examples to give you an idea of a merchant who is running an online business with low-risk clientel.
If you have further questions about our pricing structure or want to request a risk assessment of your business to see which opportunities to collaborate exist, please do not hesitate to contact us.Contact