Card processors designate certain industries as "high risk" and/or will ban individual businesses because of chargeback rates over a certain threshold (typically ~1%). Adult content businesses, attorneys and even furniture stores for example have a high chargeback rate that makes it difficult for them to find processors that will work with them.
Why are chargebacks such a big concern for the processors, given that the merchant is the one on the hook for chargebacks and associated fees? I understand why they would require an account minimum reserve, but don't understand why processors would want to completely exclude merchants with chargeback rates higher than the 1% threshold if the risk of those chargebacks is borne fully by the merchant. Stripe already has a minimum period before being able to withdraw funds, so why don't they and other major processors simply implement an account reserve requirement for businesses that go beyond a certain chargeback percentage?
[link] [comments]
from RSSMix.com Mix ID 8319533 https://ift.tt/3drF0P4
0 Reviews:
Post a Comment