Registration of
offshore companies
Рус
Merchant for high risk

Merchant for high risk

2018-05-24
594

Merchant account opens for financial transactions for customers. Each transaction is characterized by different levels of risk, the impact on this is the type of activity carried out by the seller. To check the expected level of potential losses in making payments, a merchant is held for high risks.

When risks are considered high

A financial transaction company has a high-risk account with the following indications:

• A large percentage of returns on payments, such a characteristic inherent to merchants, who have a small history of conducting transactions using credit cards. For example, when you subscribe for 18 months, the company offers 6 months to refund the amount paid and to refuse services.
• Sale of goods or services in countries with high risks of financial losses, fraud in this area. Such identification is available for all regions, except for the countries of Northern and Western Europe, the USA, Canada, Australia and Japan.
• Absence or negative credit history, difficulties with individual loans, low reputation.
• Entry into the “black list” of merchants, information about them, for example, is published in the MATCH list (electronic bulletin board) or TMF (list for enterprises selling goods and services).
• Monthly sales of over $ 20,000.
• The size of each credit card transaction is from 500 US dollars.
• Sale of expensive items, sale of property, equated by some banks to prohibited.
• Dependence of business on seasonality or on a periodic basis.
• Trading and accepting transactions in several foreign currencies.
• Employment in an industry with a high level of profits and returns on payments made.

How is the level of risk determined

When determining the riskiness of a particular enterprise, several factors are evaluated in aggregate. The following areas are characterized by high values:
• Pharmaceutical, pharmacy business.
• Organization of leisure.
• Telemarketing and IP telephony.
• Gambling and casinos.
• Realization of electronic cigarettes.
• Dating.
• Products for adults.
• Psychological services.
• Collecting.
• Selling software or copyrighted hardware.
• Divination, astrological forecasts.
• Hotel booking, organization of travel agencies and pawnshops.
• Provision of investment and financial services.

These industries will not always be rated in the high-risk category. It all depends on the individual indicators of the financial activities of the individual enterprise. Both financial and legal aspects are evaluated, the possibility of repayment of payments and the occurrence of credit obligations in connection with the sale of certain goods and services, the need to launch advertising campaigns.

Presence of a business at a high-risk level does not always mean its liquidity and the closure of financial risks for this reason by counterparties. In practice, schemes are used to optimize potential losses in various areas through the use of a number of measures, in particular, by reducing the financial burden on the enterprise or introducing other industries to conduct commercial activities. An effective way is to find a processing service provider for an account merchant who is working with high risks under certain conditions.

Apply now

and get a personalized offer