If I choose a payment processor purely because they are ‘cheaper’, only to have my merchant account terminated and funds held several months later because the processor I selected isn’t capable of handling high risk merchants, have I really made the profitable choice?
Tag Archives: risk
What is Automated Underwriting, and why should you care?
It’s not uncommon for new start-ups and established merchants alike to require loans, insurance and investments. Traditionally, this financial risk has been handled by institutions that have the ability to do underwriting, a term that was developed from the act of each risk taker writing their names on a piece of paper, under the amount …
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How to Fight Chargebacks – Part 1, The Causes of Chargebacks
Chargebacks have become a difficult (and costly) minefield for online merchants to navigate. They are more than just an expense, they are an existential threat to your business.
Managing Your MID’s Reserve Account
What is a reserve account?For merchants in higher-risk verticals (nutraceuticals, subscription billing , etc), many banks will require a reserve account to off-set the risk to the bank. To fund the account, a percentage of every batch will be deposited into the reserve account. Processing fees, refunds and chargebacks are deducted from your business checking …