---

Some businesses are considered higher risk by payment processors due to factors such as the nature of the products or services being offered, high transaction volume, or a history of chargebacks. If your business is considered medium or high-risk, it can be more difficult to find a payment processor and the fees charged may be higher. Here's what you need to know about medium/high-risk payment processing:

What is Medium/High-Risk Payment Processing?

Medium/high-risk businesses may include those in industries such as adult entertainment, e-cigarettes, gambling, and travel, among others. Payment processors consider these businesses to be higher risk because of factors such as chargeback rates, regulatory compliance requirements, and reputational risk. As a result, payment processors may charge higher fees and require additional documentation and underwriting before approving a merchant account.

Tips for Merchants

If your business is considered medium or high-risk, here are some tips for finding a payment processor and managing payment processing effectively:

1. Look for payment processors that specialize in medium/high-risk businesses: Like ourselves here at Transact365 we specialise in working with a range of businesses and due to this can offer more favourable terms.
2. Be prepared to provide additional documentation: Payment processors may require additional documentation, such as business licenses, financial statements, and other information, to underwrite a merchant account.
3. Monitor chargeback rates closely: Chargebacks can be a major concern for payment processors and can lead to the suspension or termination of a merchant account. Monitor chargeback rates closely and take action to reduce them.
4. Ensure regulatory compliance: Medium/high-risk businesses may be subject to additional regulatory compliance requirements. Ensure that your business is compliant with relevant regulations and standards, such as the Payment Card Industry Data Security Standards (PCI DSS).
5. Consider using fraud prevention tools: Fraud prevention tools, such as address verification and card verification codes, can help reduce the risk of fraudulent transactions.

Medium/high-risk payment processing can be more challenging for businesses, but it is still possible to find a payment processor and manage payment processing effectively. By working with a payment processor that specialises in medium/high-risk businesses, providing additional documentation, monitoring chargeback rates, ensuring regulatory compliance and using fraud prevention tools businesses can effectively manage payment processing and minimize risk.

Transact365 is a global payments platform powering merchants across the world in a number of industries. With robust and scalable technologies our platform supports bank wires, card payments and multiple local payment methods whilst maintaining near zero levels of fraud and chargebacks. Get in touch to find out more.