Credit card high-risk processing is an area of the payment industry that involves handling customer data and money with extra caution. Businesses need to ensure they meet certain safety and security standards to protect their customers. As such, additional fees are often incurred when dealing with high-risk processing services. In this blog post, we’ll discuss the various types of fees associated with these services so business owners can budget accordingly.
Types of Fees Associated with High-Risk Processing
There are several types of fees associated with high-risk processing services. The most common type is the merchant agreement fee, which is charged by the payment processor for setting up and maintaining your account. This fee is typically a percentage-based fee that varies from provider to provider and is usually calculated on average monthly transactions or overall sales volume.
Another type of fee you may incur while using high-risk processing services is a transaction fee. This can be applied to each credit card transaction processed through the service and usually amounts to a certain percentage per purchase transaction or a flat rate.
Additionally, many payment processing companies also charge what’s called ‘non-Qualified Rate’ (NQR) fees for international transactions or ones deemed as “high risk” due to factors like a customer’s country of origin or type of credit card used for purchasing goods or services. NQR fees are commonly higher than standard rates as they are considered more likely to incur fraud or chargeback activity, so it’s important for businesses to be aware of this before accepting payments from customers located outside their home country.
Finally, there may also be other miscellaneous fees associated with high-risk processing such as setup costs, monthly maintenance costs, and late penalty charges if bills are not paid on time. It pays to read through all available information provided by your chosen payment processor so you understand what other potential charges might come into play during a normal course of business operations.
Benefits vs Risks When Using High-Risk Processing Services
While there may be added costs associated with using high-risk processing services, there can also be some benefits involved too – such as improved customer convenience when making payments online or through apps as well as fraud prevention measures already built into them. Ultimately it will depend on how much-added security your business needs in order for you to decide whether it’s worth taking on extra financial outlay in return for peace of mind when dealing with potentially risky transactions from foreign customers etc..