High-Risk Business can take higher benefits with safe and secure payment transactions
ClickZep empowers merchants by providing smooth and flexible payment transactions that can help you with having low chargeback for your business. Let us examine how a merchant account service provider will get to know your business risk level. If you ever have applied for a loan the bank would try to figure out that are you eligible for getting the loan. The same way when a business owner applies for a merchant account, there is an underwriting process that PSP’s undergo to estimate the risk of adding your account to their portfolio. There are some of the points that are considered when you are applying for the merchant account.
Your personal credit history is checked so that they can be well known for your transaction details.
They get to know the financial status of your company.
The third they would consider is “How long you have been in this business”
If you had previously owned a merchant account they want to know the history of that merchant account. If so, do you have a history of a chargeback or have you been blacklisted ever? Are you in good standing?
Type of business that you are holding
What options you will get if you have a risky business?
Payment Gateways India can provide you with efficient transaction services that will allow you to have higher business growth. If you are holding a business that comes under one of the categories, you need to worry about it. You will more likely to obtain a merchant account for your business. However, your rates and terms of your contract will be different as compared to low-risk business. While some of the MSPs are more transparent in disclosing their standard, low-risk merchant rates, high-risk account fees since there are more variables to take into consideration. There are three types of reserve account that you can expect from the merchant account service provider.
Rolling Reserve: A Rolling-Reserve is a high-risk management strategy that acquiring uses to protect themselves from potential frauds, chargebacks or other incidents where the acquirer may lose money. Based on your agreement with the account provider, they will hold a percentage of your daily revenue for a specific term and then they will release the funds gradually.
Up Front Reserve: If you’re new businesses or have other less than ideal qualifying factors, some service provider requires starting with an upfront reserve.
Fixed Reserve: A fixed reserve is when the acquirer takes the percentage of every transaction until the reserve reaches the fixes that have been set by the PSP’s with mutual consent involved. Unlike the upfront reserve where the acquirer will take a portion of every sale indefinitely, in this model once the threshold is reached the acquirer will not take any additional funds.
These are some of the options that you will get with the Online Merchant Account facility.
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