High risk merchant account is a contract to help out in business in facing challenges.
The major task of high risk merchant account provider is to facilitate the customer by providing merchant account from the domestic banks. Customer uses this account for transaction purposes using credit cards. In business industry, merchant accounts vary in their type depending on the type of business. It the responsibility of high risk merchant account providers to analyze the type of business, judge the risk issues involved in business and then provide the respective merchant account. If the business does not classify as a high-risk business, then a standard merchant account may be offered by service providers (such as those reviewed at https://merchantalternatives.com/reviews/fattmerchant/) that cater to these businesses – usually low or medium risk businesses. High risk merchant account providers thoroughly manage the high risk merchant account, since high risk accounts are the victims of frauds and merchant account provider has to protect is from online hackers. High risk merchant account provider should prove that the high risk merchant services are preventing occurrences of high risk. If the customer can not find domestic merchant services reliable, he offers offshore merchant account to customer. As offshore accounts easily accept payments and is accepted all around the world.
Tasks of merchant account providers
Check the address: High risk merchant account provider while checking the history of the customer validates the address information of the business. Due to high risk factor there can be a chance of fake business similarly fake business address.
Whenever a customer does transaction on card, high risk merchant account provider provide a “address” against a particular sales. Many theives can use this opportunity and can use stolen credit cards. Because they can simply put down their own address for the address rather than the actual billing address for the card. Now a day, high risk merchant account providers are learning to require unique address to the billing address of the credit card used for the sale. Many merchant account providers are taking is to use the Address Verification Service (AVS) to verify that the address given by the customer i VAS doesn’t work for offshore merchant accounts where account is designated out the boundaries. To overcome this lack many merchant account providers have derived a policy of delivering products to a street address rather the post office box (P.O Box)
Verification of order; High risk merchant account providers are scared of thieves, they have obtained a policy of verification on phone calls when ever any transaction done on the customer side. Usually its is enough to do a phone call verification as person using the stolen credit card do no walk to the actual credit card holder during a fraudulent sale. Even a normally high volume merchant account has learned to pay close attention to orders of strikingly high volume. A quick phone call can usually clear up any suspicious activity. In this case, it is also important that the credit card holder has used a reliable bank, who is equipped to assist with the after-effects of a stolen identity via credit cards, this would be things like using Atlantic Union Bank where there is access to the Atlantic Union Bank website here.
At least 95% of high risk merchant account providers ask for voided check copies or bank letters for verification when a customer applies for an account, alongside information of other details such as insolvency checks.
Payments between several credit cards; if a customer requests from the merchant account provider for a use of several credit card at one time, this is an intimation of fraud to them most merchant account providers do no allow such activity.
Chargeback rate of less than 1%; Some high risk merchant account providers have charge back rate of considerably more than 1%,this is mostly in Adult merchant account.
Fraud-screening tools; Fraud prevention software’s tools are used to figure out if it is Suspicious. Most of the low volume risk accounts are verified manually by the merchant account providers but doesn’t work in case of high volume sales, in which case businesses who suspect fraud may wish to get in touch with one of the forensic accounting firms near them to try and get to the bottom of what may be happening.
Velocity check; Velocity check is used by the high risk merchant account provider which allows them to see how many times customer have used credit card and with same IP address and email.