Posted by admin on Dec 18, 2010


High Risk Merchants

High risk merchants are the leaders when it comes to implementing successful payment processing technology. 

Companies are classified as high risk merchants because of the greater likelihood of chargebacks and fraudulent transactions associated with particular industries or business models.  Because of this, high risk merchants benefit greatly by offering alternative payment options in addition to card processing.

Electronic checks, of course, are a good alternative payment option for high risk merchants.  Electronic checks can be processed either through the ACH payments network or by using Check 21 technology.  The decision of which to use is based on the particular needs of each high risk merchant.  High risk merchants can capture 8-20% more sales simply with the addition of electionic checks as a payment option.

Another excellent alternative payment option for high risk merchants is online PIN debit.  This exciting new payment option allows consumers paying with debit cards online to input a pin number.  For merchants, the pin based transaction is much more difficult for a consumer to dispute.

Yet another good alternative for high risk merchants is to accept payments from buyers through what is known as a "push payment".  At checkout, buyers using this payment option are automatically directly to their online banking system.  After logging in, buyers authorize the payment be made or "pushed" from the buyers' bank account directly to the merchant.  This form of payment is very difficult for a buyer to dispute and chargebacks are negligible.

For more information on alternative payment processing for high risk merchants, visit