Consumers fully expect a convenient, safe, and secure experience when shopping online. It is extremely important for e-commerce merchants to work with a payment provider that enables you to process online credit and debit card payments while providing a seamless experience for your online customer base. For many companies, choosing a merchant account provider is a simple matter as most banks and payment processors will easily approve their applications.

Unfortunately, this does not hold true for some e-commerce merchants as they are considered high-risk from a payment processing perspective. This means the vast majority of credit and debit card payment processing companies are not willing to process payments from your customer base. The good news is that all is not lost! Although obtaining a merchant account becomes more difficult, it is possible. There are payment processing specialists, like Payment Savvy, that offer high-risk merchant accounts for e-commerce businesses. At this point, you may be curious as to why your company falls into the high-risk category. The following information will provide you with the main reasons why e-commerce merchants are considered high-risk.

 e-Commerce Merchants are Considered High-Risk due to Online Fraud

 Many consumers prefer to shop online and this trend will only grow as more people become comfortable conducting business on their computers, smartphones, and tablets. Unfortunately, identity theft is also matching this growing trend. Criminals are constantly inventing creative online methods to steal your customers personal, and financial information. Data thieves are also more likely to use stolen information to make purchases online rather than in brick and mortar stores. Although your e-commerce business should not be penalized,  many payment processing companies are not willing to work with e-commerce merchants due to the increased probability of fraud.

e-Commerce Merchants are Considered High-Risk due to Excessive Chargebacks

Criminals and the resulting loss from fraudulent activities they cause, are not the only reason why e-commerce merchants are considered high-risk. Plenty of consumers are either unhappy with the product or have buyers remorse. Perhaps they spent too much money or made an impulse purchase. When consumers are unhappy they either complain to the merchant, return the product, or contact their bank to return the credit or debit card payment in the form of a chargeback.

When a chargeback is issued the merchant is responsible for the loss. The more chargebacks received, the riskier your business looks to banks and payment processors.

Payment Savvy specializes in providing e-commerce merchants with the ability to accept credit and debit card payments. Please contact Payment Savvy today to review your options, apply for a high-risk merchant account, and to obtain answers to your questions. We look forward to hearing from you and working with your company.

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