There are many factors responsible for increasing the risk of chargebacks. The top factors include the products or services offered, the sale method, the mode of processing the transaction, the countries where you sell and the average amount of monthly sales.
High risk credit card processing offers many benefits to high risk merchants. Here are a few top benefits.
Alluring revenue opportunities
High risk credit card processing is a boon to merchants who want to thrive in the global ecommerce community. Doing business online means it is possible to make sales to anyone, anywhere and at any time. Adding to this, the prospect of selling to customers in other currencies makes the revenue opportunities quite tempting. In contrary to this, a low risk merchant cannot process multiple currencies or sell to many countries outside including US, Canada, and Australia. So if you are for instance in the CBD products selling business you can easy get an CBD merchant account UK, CBD merchant account US or which ever region you want.
Endless earning opportunities
According to experts working in the offshore merchant account processing industry, the sky is the limit for merchants. On one side where low risk merchant accounts cannot offer recurring payments or sell any product or service they so wish, high risk merchants can grow their business by leaps and bounds. Allowing huge transactions mean the merchant needs fewer sales to earn more revenue. With the help of high risk business accounts, a merchant can sell anything they so desire.
No alarming chargebacks
The traditional merchant accounts assess a low chargeback fee but the long-term effects of low risk are quite damaging. The associated banks keep on monitoring the chargeback activities for businesses. If the chargeback threshold exceeds, the account may be simply terminated by the account holder. But on the other hand, a high risk merchant account is rarely terminated because of excessive chargebacks. As a merchant, you might pay heavy fines but the longevity of the business is not in danger.
It is obvious all business enterprises come with a fair amount of volatility. You can avoid a few of them if you are careful but some of them might be worth the gamble. A professional advice can help you avoid pitfalls and climb the ladder of success.