If we are talking about high-risk accounts, it means that such an online account is considered being at higher risk for fraud or chargeback reasons, usually due to the industry the merchant operates within. To compensate for the possible risk, online high-risk bank accounts pay higher fees for payment processing. By reading our article, you’ll learn why your business online account may be considered high-risk, and what the consequences are there for the business.
High-risk accounts explained
So, there are 3 main reasons why the payment processor may identify your account as high-risk:
- chargebacks are the main reason for gateways to consider the fraud in the account’s activity;
- a lot of returns may also signalize the risk;
- an industry that deals a lot with two previous reasons.
Online high-risk bank accounts usually mean higher commissions. If your online account has been deemed high-risk, you will have to pay double the maintenance fees. Because the payment gateway takes a risk, it is not uncommon for an additional fee or percentage to be charged on the amount of the transfer. Higher fees apply to all high-risk accounts, even if you have only had a few chargebacks.
Why might this happen? There are many options: you are either a new brand that is just starting to process payments, or your area of business has a high likelihood of fraud (such as trading or sports betting). In all these cases, the ecommerce payment gateway may also block your eWallet account and suspend all money transfers. Financial transactions are monitored especially closely in Europe and the United States, and all euro (EUR) and dollar (USD) transfers are checked since the reputation of the payment processor is very important for future cooperation with the banks.
Genome account – the perfect solution for your business
If your account was identified as high-risk, it is not worth paying double commissions, it is better to create a Genome account, where you can quickly and safely accept money to different accounts. To do so, you will start a merchant account, which is designed to run your business conveniently. Having an eWallet will simplify your transfers and make transactions times faster. With Genome, your business will start making money!