The task of underwriting an application may be complicated, but there are criteria involved that make it easier. Underwriters are responsible for assessing how much rolling reserve should be put on a company, as well as check on the following:
Means of Delivery to Customer
Fraud History Checking
There are several types of risks involved when assessing a high risk merchant account application. However, the most aggravating of these is the contingent liability. As mentioned above, a business that relies on lifetime delivery of product is the most likely to be declined. Unlike risks on fraud or credit, contingent liability increases the possibility of chargebacks in the future. If a merchant is not able to deliver the product or service as promised, customers will want a refund. Generally, the longer the allowance period from the payment to the delivery of the product/service, the higher the risk. Also, if there is little or no proof that it has been deliverd, such as a movie file downloaded online, the higher the risk that is involved.
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Underwriting High Risk Merchant Accounts
More High Risk Merchant Account ezinearticles by Gerri Bryce:
- OsCommerce for High Risk Merchants - The Good, The Bad, and The Possibilities
[Finance] Just because osCommerce is the most popular merchant account software doesn't mean it's the best solution for your online business. Agree or disagree? Do you find osCommerce to be overrated? A lot of high risk merchants adopt osCommerce as their primary merchant account solution because of so many advantages.
- Insider Tricks to Successful High Risk Merchant Account Application
[Finance] Many merchants complain about the lack of information when it comes to high risk merchant account application. It's not that there's no information at hand; it's more likely because merchant account providers do not give standard customer service or are simply too lazy to share the nuts and bolts that the applicants need.