Maybe you have little to no credit card transaction history. This won’t necessarily hurt your chances of being approved by a processing company, but it will make other factors of your business more important to the decision-making process.
Certain industries are considered riskier for a credit card processing company:
- Adult and sex industries
- Vape sales
- Firearm sales
- Dating services
- Travel services
- Magazine sales
- Software sales
- Furniture sales
Each of these industries has certain factors that increase processing risk. Furniture sales, for example, are mostly transactions in excess of $500. When most of your transactions are high-cost, customers are more likely to try to chargeback the item if they are dissatisfied.
Firearm sales and adult industry transactions, on the other hand, are mostly considered high-risk because of the potential branding implications. Many processing companies simply do not want to be associated with these types of businesses.
Sometimes, though, it’s not just the type of business you run that influences your risk factors—it’s also who you’re selling to.
It makes sense to want to sell your wares and services overseas. When more people can buy your stuff, you can potentially make more money. And sometimes the demand for your services is higher in a certain country.
Unfortunately, some countries have much higher rates of fraud and chargebacks per capita. That’s why some processing providers service transactions made in only certain countries. Companies like Stripe, on the other hand, have built up infrastructure around the world, allowing them to stay protected from excessive fraud.