How to manage financial risk in High Risk Merchant Account

Dealing with financial risk in a high risk merchant account is critical if you want your business to remain stable and viable. The following are some specific things you can do to mitigate any potential losses and have a successful payment processing environment:

1. Know your risk:

   Determine what specifically makes your business risky: Is it your industry, high chargebacks, or large volume transactions? Then, set out to correct it.

   
   

2. Use an experienced processor:

   Select a payment processor that works specifically with high-risk businesses. An experienced processor will have relative fraud protection in place, tools for chargeback management, and a possible industry-specific payments solution.

   
   

3. Implement fraud prevention tools:

   Verification tools, such as AVS (Address Verification System), CVV verification, and AI tools for fraud detection, should monitor for suspicious transactions and help to reduce fraudulent transactions.

   
   

4. Keep Chargeback Ratios Low

   Maintain a clear refund policy, provide customer service that exceeds expectations, and respond quickly to conflicts.

   
   

5. Track Transactions Constantly

   Be aware of your daily transactions, raise flags for anything irregular and comply with the rules of card networks.

   
   

6. Have Capital Reserves

   Convert and have capital reserves for your chargebacks and any other holds placed by your provider.

   
   

7. Be Transparent

   Be upfront and honest about what you sell, the terms of service, etc. to mitigate misunderstandings leading to disputes.

   
   

If you engage in proper risk management, you will protect your account and make your business more desirable with Trinity Consultings.