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Know whether you are a high risk merchant or not
Are you a high risk merchant? Well, the question may throw you off guard but you need to know that certain businesses are tagged as ‘high risk’ when the question of electronic processing of payments is concerned. Therefore, people with high risk businesses are known as high risk merchants. Since you are a merchant with an online business you need to know about the factors that decide whether a particular business is high risk or not. The concept of high risk business is integrally linked to the concept of grey zone (normal to definitive high risk) and red zone (very high risk).
There are numerous factors that determine whether a business in question is high risk or not. Some of the most important factors for determination include probability of returns of the merchant, the chargeback, the history of the business and the planned means that are used by the business to accept credit cards from the customers. If the customers return your goods and services at frequent intervals, it is believed that something is wrong with your business and therefore your business gets termed as high risk. The businesses that fall under the red zone include gambling, telemarketing, adult industry and debt collection. Electronics and inbound telemarketing fall in the grey zone.