If you run an online business, you know that obtaining a merchant account can sometimes be a hassle. Different acquiring banks have different standards when accepting merchants, and your e-commerce risk factor could determine what type of account you can get with a bank. Therefore, it is important for all merchants to know how to determine their risk factor, and what options they have because of that factor.
Low Risk Businesses
Below are the characteristics of a low risk business:
- You have a monthly processing volume of $20,000 or less
- Your average ticket size is $50 or less
- You use 3D Secure processing technology to reduce the risk of credit card fraud
- Your payment page is hosted by your payment service provider
- Your business is a low risk industry, such as clothing, books or home goods
- You live in a low risk area such as USA, Canada, Australia, Northern and Western Europe, or Japan.
Medium Risk Businesses
Below are the characteristics of a medium risk business:
- You have a monthly processing volume between $20,000 and $100,000
- Your average ticket size is between $50 and $100
- Your business is a medium risk industry, such as online gaming, forex trading, magazine subscriptions, or a MOTO business.
- You live in a medium risk area such as Central Europe, Latin America, the British Virgin Islands, Cyprus, Malta or Israel.
High Risk Businesses
Below are the characteristics of a high risk business:
- You have a monthly processing volume above $100,000
- Your average ticket size is $100 or more
- You host your own payment page
- Your business is a high risk industry, such as adult entertainment, online gambling, or e-cigarettes.
- You live in a high risk area, such as Eastern Europe, Russia, the Middle East, or Southeast Asia.
What if my business has different characteristics?
If the characteristics of your business fall into one or more of the above categories, there is no need to worry. E-Commerce risk factors are different with each bank and there are custom solutions for most merchants. The above characteristics are merely guidelines to follow when determining your risk factor.
Other things to consider
There are a few other things you must consider when searching for a merchant account. In addition to risk factors, other features about your company and business history may impact your ability to find credit card processing solutions. Be ready to answer these questions when applying for merchant services:
- Do you have payment processing history?
- Is your processing history current?
- Have you had a merchant account terminated in the past?
- If so, what was the reason for termination?
- Did your acquiring bank terminate your merchant account because you were processing more than your original estimate?
- Do you experience high chargebacks?
- Is your product illegal or banned?
- Were you processing credit cards with your merchant account for another business?
- What is your credit score?
Diverse options and fast approvals
At Instabill, we’re partnered with a vast array of acquiring banks around the globe. This gives us the ability to deliver custom solutions for low, medium, and high risk merchants. If you know your e-commerce risk factor and need fast credit card processing solutions, contact us today and get started on your free merchant account application. Even if you are unsure of your risk factor, one of our merchant services experts will be able to help you. Simply click the button below to get started, or call 1-800-318-2713 today.