Know More about Different Merchant Risk Profiles

A variety of products are being sold over the Internet as well as at local stores. The merchants are identified by the items they trade, their payment processing techniques and profit margins. High risk merchants have well identified their business types and risk levels which help in measuring their performance by the counterparts. 

Given below is the categorization of different merchant business profiles in accordance to risk levels. 

1. Low Risk Merchants

Restaurant owners, toy and book retailers fall under the lowest risk category. They find it easy to qualify for normal loans, and rarely find any need to open a high risk merchant account. 

2. Medium Risk Merchants 

Merchants dealing in telecommunication services, health products and education sector fall under the medium risk category. They find it beneficial to open a high risk merchant account for processing credit card payments on their store.

3. High risk Merchants 

Online auction, gambling and debt collection agencies are considered highly risky by the nature of business. They make the largest pool of high risk merchant account holders.