Payment Processing: What are Some Best Practices to Follow If You’re High-risk?

Monday, March 14th, 2022

If you’re a high-risk merchant, you know how difficult it can be to keep up with your payment processing needs. You’re at risk for chargebacks and other credit issues, so you need to make sure that your practices are above board.

6 Best Payment Processing Practices for High Risks

The best payment processing practices for high-risk merchants include:

     1. Use an offshore processor

Global processors allow you to process payments from your overseas customers.  The best approach is to find an offshore payment processor with a physical presence in the country where your base of operation is located.

     2. Practice Load balancing

Ensure that you have at least two different processors, so if one terminates your account, you still have one that will process your transactions. This can be done by splitting sales equally between the two or using an equal percentage split of their total transaction volume.

      3. Work with a flexible service provider:

If you cannot do load balancing, then choose a payment processor with flexible terms that will favor your business during tough times. Besides, the ability to customize offers your business an edge.

      4. Verify your customers’ identities. 

Keep a record of all transaction information, including names, addresses, and phone numbers. Don’t just take a customer’s word that they’re who they say they are; verify their identity through the International Revenue Service or another government agency to ensure that their identification matches their card information.

      5. Provide customers with receipts, even if they don’t ask for them. 

Receipts provide proof that you processed a transaction in the event of a dispute and may reduce your risk of fraud significantly.

      6. Maintain detailed records

 Capture all transactions, including dates, amounts, and descriptions, for at least one year after the transaction date. Records help prove that you processed valid transactions when questioned by your processor or a customer.


It’s also essential to work with a payment processor that understands your industry. That way, your account will less likely be terminated if you run into problems.

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