A merchant having a high risk of fraud and chargebacks is classified as a high-risk merchant. A high-risk merchant has to pay a considerably higher amount for the same services than low-risk merchants because banks have to use more resources and face higher risks when onboarding high-risk businesses.

Difference between low risk and high-risk merchant accounts

Low-risk accounts have a zero or low chargeback ratio, whereas high-risk accounts have bad credit history and excessive chargebacks.

High-risk merchants require services that offer them secure, faster, reliable, and low-rate services to accurately manage their accounts and operations. A trustworthy low-rate merchant service provider can reduce the risk of frauds and chargebacks and ensure high trading volumes.


Read more: https://www.paycron.com/merchant-services

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