Most banks are wary of high
risk merchants, as they sometimes cause the greatest losses in their books. This
is the main reason why businesses classified in high risk category pay greater
fees to the bank than the others. If high risk merchants keep the following points
in mind, they are sure to make lesser mistakes.
1. Keep the dispute numbers to minimal.
Too many disputes will lead
to too many extra fees for processing and clearing the issues. Merchants can
ensures that there are lesser disputes by laying down clear cut processes to ensure
maximum customer satisfaction to each and every client. They should ensure that
refunds are released promptly, before a dispute is even filed.
2. Keep the chargeback ratio down
The moment a merchant
follies to solve a dispute amicably the credit card company will raise a
chargeback in order to process the refund on the client’s behalf. All smart merchants
should avoid such a scenario as the charge back costs charged by the banks is
too high and eats away profits.
3. Unusual And Abnormal Transactions
A merchants should be
instantly alarmed when he notices unusual activity and multiple transactions in
a short period of time. Banks get very cautious of unusually high volumes and expect
the merchant to keep them informed of any clearance sales or other high revenue
planned activities.
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