Low Risk

Low Risk refers to businesses that are generally considered to have a low likelihood of experiencing chargebacks, fraud, or other financial risks. Factors contributing to a low-risk classification might include the following:

  • the merchant’s industry
  • average transaction size
  • processing history
  • chargeback ratio
  • length of time the merchant has been operating
  • the merchant’s financial stability
  • merchant’s history of complying with legal and regulatory requirements

Low risk businesses often operate in stable industries, have a consistent and established customer base, and do not sell goods or services that are commonly associated with fraud or other financial risks.

Because low-risk merchants present less risk to payment processors and acquiring banks, they are often able to secure more favorable terms, such as lower processing fees and less stringent contract requirements.