Safe exchange of funds is the first and foremost task for any online business. The reliability of transactions ensures a stable reputation, customer trust and relationships. When selling services and products via the Internet, a payment gateway is used.
What is payment gateway
Payment gateway is a technical operator and software developer for performing financial transactions between a buyer and a seller online. Specially developed and constantly updated software acts as an intermediary in transactions. Gateway functions include:
- Payment security for merchant and payment processor.
- Processing, operational storage and protection of data of participants in transactions.
- Reduce the risk of fraudulent attacks, compensate for security breaches, and quickly eliminate gateway weaknesses.
In addition, gateways differ in the level of business risk.
What type of commerce is considered to be high-risk?
Protection from scammers, hacker attacks and payment fraud is essential in any type of online transaction. However, banks and transaction processors compile a business risk rating, which determines the decision on the price of payment services and commissions for operations.
At the same time, companies of the same industry with the same set of services and goods may have different levels of riskiness. This is due to the fact that payment providers carry out an individual examination for each consumer. So, a gambling payment gateway will be a little more expensive and with different conditions than for a small online store or enterprise, due to the fact that in the first case, the risks of losing money on transaction channels are higher.
The approach with different costs and commissions is related to the supplier’s responsibilities – the complete safety of payments and customer data or compensate for losses must be ensured.
Payment gateway for high-risk business
Determining the best payment gateway is a hard task. It is important to consider all the nuances, the set of tools, the speed of transactions, etc. But for transactions with high-risks, the search for a gateway is even more difficult due to the limited supply. It is necessary to create a merchant account with a bank or payment processor. At the link https://corefy.com/high-risk-payment-gateway you can find detailed information about the company’s approach to high-risk customers and the terms of service.
Despite marketing slogans about fast approval and getting started from the moment of contact, only a small list of providers can handle high-risk payments. The most common issues in the case of such operations are as follows:
- Registering an account for transactions.
- Increased commissions for operations.
- The need for a reserve of transactions of about 20%.
- Increased chargeback volume.
- High-risk of fraud.
The payment gateway is the best solution for the security of online transactions. The right choice of a quality operator will allow the business to strengthen its positions and increase sales.
