A chargeback ratio is the number of chargebacks compared to the number of transactions for a business. A low chargeback ratio means that out of all the transactions the business has, only a small amount request for a refund. Credit card associations and banks / processors will drop businesses with excessive chargeback rates.
One way is for the merchant to go directly to a processor, and the other way is for the merchant to use an experienced high-risk account specialist, who has access to Merchants often apply to as many processors as possible, hoping that at least one will approve them. However, that can do more harm than it can help. Processors are able to see when a business has been applying to several processor
As most merchants know, chargebacks can happen for many reasons. Many times, the chargebacks are not the fault of the merchant, but often they can be avoided with simple steps. If a business finds itself with an excessive number of chargebacks, or if they are in an industry notorious for chargebacks, they might find themselves in need of a high risk merchant account.
Applying for a merchant account is an important step in starting or growing a business. When starting your search, there are some important tips you need to know about selecting the right high risk merchant processor. One of the most common mistakes a merchant can make is to not understand that their business is considered high risk, or they may not know that every processor is not able to approve every business type. There are many lo
In the high-risk credit card processing world, while searching for the correct solution for your type of industry, you might come across websites that promise “instant approvals”. Is this something that can really happen? Are they just trying to lure you into submitting an application with them? Most of the time, the answer is yes.