Have you ever wondered why your business is a high-risk business? The reason may change from business to business and depend on the industry you are in. Some common criteria that determine risk of your business are as follows-
Chargeback Rate- If your business or industry indulges in high chargeback rates and possible frauds, then you are probably a high-risk merchant. Find your business from the below mentioned high-risk business list.
Business License- The businesses that need licensing or a legal opinion also fall under high-risk category. Adult businesses, Pharmaceuticals are among many businesses that require a licensed to trade.
Marketing Methods- If your business offers trial and continuity products with future subscriptions then you might have to check your business under high-risk category.
High Transactional Value- High transaction values often invite frauds and therefore are under restricted category. Any business with high average transaction value is deemed as high-risk businesses.
Offshore Businesses- If you are not incorporated in the United States but have a niche audience and customers from the country, then you will be regarded as a high-risk merchant.
BUSINESSES CONSIDERED HIGH RISK
1-800 chat sites
All sexually oriented merchants
Amazon, Yahoo, or Google stores
Casino, gambling or gaming
Check cashing services
Cigarette or electronic-cigarette sales
Credit or debt repair
Event ticket brokers
Exporting services (non U.S.-based)
Fantasy sports websites
Federal Firearms License dealers
Indirect financial consulting
Financial planning, strategy, or advising
Horoscopes, astrology, or psychic services
Lawyer referral services
Magazine sales and subscriptions
Merchants on the terminated merchant file list
Replica or knock-off handbags and accessories
Self defense, pepper spray, mace
Vitamin and supplement sales (diet pills, prescriptions, pharma)
Weapons of any sort including weapon parts