Lets Understand The Low Risk merchant
Its essential to understand about your business whether it comes under Low Risk Category before you apply it at the bank for a merchant Account because merchants in our payment processing world are categorized under low-risk, medium-risk and high-risk categories. There are a number of points or reasons concerning which any business can be classified as Low Risk or high risk or medium risk Business and for an example while reviewing the business it is reviewed that how much risk is involved in the business, what is their risk level, which is the country wherein they got incorporated and their processing history etc.
The following criteria is a perfect match for any business that falls within the low-risk category –
- Monthly Processing amount lower than $20,000 is processed by you.
- The average size of ticket that you posses is lower than $50.
- Your chargeback ratio is quite low.
- The industry that you cater to reflects a lower risk.
- The country of your incorporation falls within a low-risk category.