The nature of a business determines its risk level. There’s a concise list of high-risk industries, including Casino, Forex Trading, E-Commerce, Dating Apps, Adult Entertainment, and Online Gaming, due to their inherent risks and high chargeback ratios. Finding a high-risk merchant service provider with tailored solutions is challenging.
If you’ve secured instant approval for a high-risk merchant account, especially for E-commerce, understanding five crucial statistics is essential. Increased credibility and reduced chargebacks positively impact business outcomes.
Common Reasons for Chargebacks:
1. Approximately 30% of consumers claim purchases were made with stolen credit cards.
2. 26% report non-delivery of charged products.
3. 15% received the wrong product.
4. 4% found the product didn’t meet expectations.
5. Many complained that the product listed online differed from the description.
6. Some noted double billing or clerical errors.
Research reveals software businesses have the highest chargeback ratio (0.65%), followed by financial services (0.56%), media and eContent (0.43%), and online gaming.
Once chargeback ratios hit 1%, reconsideration or account cancellation is common among merchants and banks.
Friendly Fraud Cases:
Approximately 86% of chargebacks result from friendly fraud, where customers dispute legitimate transactions, often to recoup funds for used products. Chargebacks cost merchants $2.40 per dollar, totaling a 1.47% loss in revenue.
In reality, only 1 in 20 customers directly contacts a business to resolve issues, with the remaining 19 preferring chargebacks. Additionally, 81% of customers are unaware of the distinction between returns and chargebacks.
Conclusion:
Chargebacks pose a significant threat to global businesses, with rates increasing by 47% every two years. To shield businesses from fraud and chargebacks, Paycly emerges as a beacon of security and reliability in high-risk merchant accounts. With state-of-the-art fraud prevention and chargeback protection, Paycly delivers unparalleled security, offering tailored solutions for risk mitigation. Our steadfast commitment to excellence and customer-centric approach positions us as the trusted ally for businesses seeking stability and growth in high-risk sectors. Choose Paycly for unmatched fraud chargeback protection and experience service excellence in the offshore high-risk merchant account industry.
Visit us at: Best high risk merchant account
Originally published on: LinkedIn Blog
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