Accepting payments through a fast and secure platform is a critical aspect of achieving success for businesses across all industries. However, it's important to recognize that not all businesses face the same requirements or challenges in this regard. Some businesses fall into the category of "high-risk," which means they operate in industries with a higher likelihood of encountering specific issues such as chargebacks, fraud, or legal complications. These factors can significantly impact the payment processing procedures and overall operations of high-risk businesses.

At SlidePay, we offer secure high-risk payment processing services. By familiarizing yourself with high-risk payment processing and assessing the factors that define your business's risk level, you can make informed decisions about your payment processing strategies and choose the right payment processor that aligns with your specific industry requirements.

What is high-risk payment processing?

High-risk payment processing involves handling payments for businesses operating in industries with elevated risk factors. These industries include online gambling, adult entertainment, pharmaceuticals, tobacco, travel agencies, telemarketing, and more. These industries are classified as high-risk due to their higher probability of facing challenges like fraud, and non-compliance with regulations. To cater to the unique needs and challenges of these industries, specialized high-risk payment processors are available. These processors have developed expertise in managing the risks associated with high-risk businesses and provide tailored solutions to address chargebacks, fraud prevention, and regulatory compliance. Continue reading to learn a few indicators that your business may be considered “high-risk.”

Is your business subject to high chargeback rates?

Businesses seek high-risk payment processing for various reasons, with chargebacks being among the top concerns. Chargebacks happen when customers dispute transactions and request refunds through their banks. In high-risk industries, businesses tend to face higher chargeback rates compared to other sectors. Several factors contribute to this, including customer dissatisfaction, fraudulent transactions, or instances of buyer's remorse. Specialized high-risk payment processors employ advanced fraud detection and prevention measures to minimize fraudulent transactions. They may also offer comprehensive chargeback management systems and support businesses in resolving disputes and reducing chargeback rates.

Is your industry susceptible to fraud?

Businesses operating in high-risk industries are particularly vulnerable to fraudulent activities due to the financial incentives they offer to fraudsters. Industries like online gambling, adult entertainment, and pharmaceuticals tend to attract individuals seeking to exploit security vulnerabilities or conduct unauthorized transactions. To mitigate this risk, high-risk payment processors employ advanced fraud prevention tools and technologies. These tools are specifically designed to identify and prevent fraudulent transactions, ensuring the safety of both the business and its customers. High-risk payment processors utilize robust fraud detection systems that analyze transaction patterns, customer behavior, and other data points to detect suspicious activity.

What are the legal requirements for your business?

Certain industries, like online pharmacies, are subject to stringent regulatory frameworks and must meet specific compliance requirements. These regulations are in place to ensure the sale of genuine medications, safeguard consumer health and safety, and prevent the distribution of counterfeit or unauthorized pharmaceutical products. For businesses operating in high-risk industries, adhering to these guidelines is crucial to maintain their legal status and reputation. High-risk payment processors have extensive knowledge and experience in navigating the complex regulatory landscape associated with these industries. They possess a deep understanding of the industry-specific regulations and compliance requirements. These processors work closely with businesses to ensure that their payment processing practices align with the applicable laws and regulations.

Do any of the aforementioned factors affect your business? If so, it may be time to partner with a reputable, high-risk payment processor. Get in touch with our team of experts today to learn more about our services.