High Risk Payment Processing: What's A Merchant To Do?

HIGH RISK PAYMENT PROCESSING: WHAT'S A MERCHANT TO DO? Many lucrative and fast-growing industries are considered a risky bet for financial institutions that process their payments. Here's why-and what to do about it. TOP HIGH RISK INDUSTRIES MANY OF THE RISKIEST INDUSTRIES ARE ALSO LUCRATIVE. BUSINESSES THAT HAVE THE MOST TROUBLE GETTING MERCHANT ACCOUNTS INCLUDE: PHARMACEUTICALS ADULT WEBSITES AN ESTIMATED 4% OF WEBSITES ARE SEX-RELATED. THE GLOBAL PHARMACEUTICAL MARKET TOPPED $1 TRILLION IN SALES IN 2014. GAMING ONLINE GAMBLERS IN THE U.S. ARE EXPECTED TO WIN MORE THAN $7.4 BILLION BY 2017-AROUND 30% OF THE GLOBAL GAMING MARKET INTERNATIONAL BUSINESSES INTERNATIONAL COMPANIES TRADED $18.8 TRILLION IN GOODS AND $4.7 TRILLION IN SERVICES IN 2013. AUCTIONS MULTI-LEVEL TELEMARKETING THE ONLINE MARKETING U.S. TELEMARKETING AUCTION NETWORK OR INDUSTRY HAS GROWN 15.2% MULTI-LEVEL MARKETING COMPANIES SALES WORLDWIDE MADE $18 BILLION IN 2013. REACH IN THE ANNUALLY $90 BILLION FOR THE PAST THREE YEARS. RANGE. TRAVEL/LODGING THE TRAVEL AND TOURISM INDUSTRY HAS AN ANNUAL ECONOMIC IMPACT OF AROUND $6.5 TRILLION WORLDWIDE. E-CIGARETTES DATING WEBSITES THE ONLINE DATING INDUSTRY MAKES MORE THAN $1.7 BILLION A YEAR. E-CIGARETTE SALES ARE EXPECTED TO GROW 57% IN 2016. WHAT MAKES A BUSINESS RISKY? IT ALL COMES DOWN TO CHARGEBACKS. BUSINESSES WITH TOO MANY ARE CONSIDEREDA CHANCY BET, WHAT'S A CHARGEBACK? WHEN CONSUMERS DEMAND THEIR TOP RED FLAGS MONEY BACK FROM FRAUDULENT OR MOST CHARGEBACKS OCCUR WHEN: DISPUTED CREDIT CARD CHARGES, THE MERCHANT COVERS THE LOSS. TRANSACTIONS ARE MADE REMOTELY (CARD NOT PRESENT). PAYMENTS ARE CHARGEBACK RATES MADE IN ADVANCE. AVERAGE CHARGEBACK RATES DEPEND PRODUCT IS ON WHETHER THE CARD IS PRESENT AND HOW MUCH IS CHARGED. MORALLY AMBIGUOUS. CARD HAS BEEN USED FRAUDULENTLY. CARD PRESENT: 0.1% TRANSACTION TOTALS $2,000 OR MORE. CARD NOT PRESENT: TRANSACTIONS TAKE PLACE OVERSEAS. $0-$1,500 0.3% $1 SUPPLIER CHARGES DISTRIBUTER MORE THAN $1,501-$2,000 0.5% END USER PRICE. 3% пш $2,001-$2,500 MOST BANKS CONSIDER A 1% CHARGEBACK RATE THE MAXIMUM ACCEPTABLE AMOUNT. TOP CITIES FOR CHARGEBACKS A STUDY OF 500,000 E-COMMERCE CHARGEBACKS FOUND THESE CITIES WERE THE WORST OFFENDERS: 1. SHOW LOW, AZ 2. PORT WASHINGTON, NY | 2.2% 1.7% 3. SAN JOSE, CA 4. ASTORIA, NY 1.5% 1.5% 5. MIAMI, FL 6. CHICAGO, IL 7. SHERMAN OAKS, CA 1.5% 1.4% 1.4% RISING FRAUD CHARGEBACKS 31.8 MILLION PERCENTAGE OF TRANSACTIONS U.S. CONSUMERS EXPERIENCED A CREDIT CARD BREACH IN 2014. RETURNED DUE TO FRAUD: 2013: 0.40% 2014: O.47% 45% OF CARD FRAUD OCCURS ONLINE. = 1 MILLION PEOPLE FRIENDLY FRAUD 86% OF CHARGEBACKS MAY BE THE RESULT OF "FRIENDLY FRAUD" - WHEN THE CONSUMER BUYS AN ITEM AND THEN ILLICITLY REQUESTS A CHARGEBACK. 28% CONTACT THE 58% OF CARDHOLDERS NEVER HHH CONTACT THE MERCHANT BEFORE MERCHANT ONLY AFTER THE FILING A TRANSACTION DISPUTE. DISPUTE HAS BEEN FILED. HIGH RISK PAYMENT PROCESSING OFTEN COMES WITH: х LOFTY RATES POOR SERVICE UNRELIABLE ACCOUNTS WHAT CAN HIGH RISK BUSINESSES DO? BANKCARD BROKERS OFFERS PAYMENT PROCESSING YOU CAN TRUST. WE'RE DEDICATED TO HELPING HIGH RISK BUSINESSES GET THE DEPENDABLE AND TRANSPARENT MERCHANT SERVICES THEY DESERVE. İBANKCARD +BROKERS www.bankcardbrokers.com © 2016 BankcardBrokers Infographic designed by Mad Fish Digital SOURCES: forbes.com, drugwatch.com, unctad.org, statista.com, wsj.com, statisticbrain.com, mlmattorney.com, marketresearch.com, lexisnexis.com, quora.com, payment-services.ingenico.com, digitaltransactions.net, creditcards.com