How to Handle High-Risk Card Transactions

How to Handle High-Risk Card Transactions:


If you’ve ever run a business, you know how important it is to keep track of your money. Every year, it’s important to take care of things like payroll and taxes. When you do high-risk transactions like selling credit cards, it’s even more important that your business runs smoothly and efficiently.

This blog post explains high-risk transactions and how to handle them so you can continue providing great customer service.

What are transactions with a lot of risk?

Most of the time, high risk transactions are those that are more likely to lead to returns, chargebacks, and fraud. The problems will mostly look the same no matter what kind of business it is. If there are any problems with the transaction, the merchant’s funds would be put on hold until the problem is fixed.

Different kinds of high-risk deals

As the world of online payments continues to change, e-Commerce merchants need to keep a close eye on both the amount of money they can make and the kinds of customers they are getting.

Here are some examples of high-risk transactions to look out for:

  • First-time customers
  • International customers
  • Card-not-present transactions include phone orders, mail orders, authorization and settlement through an IVR system, and Internet purchases.
  • Manual transactions without authorization
  • Manually keyed transactions
  • All transactions a customer keys into the terminal

Why Are Certain Transactions Considered High Risk?

Some of the reasons why a person, business, or organisation might want to do a high risk transaction are:

  • This deal is for a lot of money. If you sell your house to buy a new car and then sell that car for more than it cost you to pay off your credit card debt, this would be considered high risk.
  • A small business is making the deal. If you want to start your own landscaping business but don’t have enough money yet because you have student loans or other debts that need to be paid off first, this can make it hard for you to buy things online or send checks to places other than banks.

Preparing for a High-Risk Transactions with Your Merchant Account Provider:

Get a plan together. When you know a transaction is high risk, it’s important to have a plan so you’re ready for what might happen. Before letting the cardholder make a purchase, your merchant account provider may want to see some hard numbers from you. For example, if they know that this customer tends to overspend and go over their credit limit on regular purchases (like coffee), they may ask for proof of income or refuse the transaction.

Be honest with your seller about what purchases are authorised by policy (e.g., “no exotic goods” or “no art”). It also helps if the provider knows what types of transactions are more likely to be high-risk. Listing deals with 80% and 50% approval rates may assist check future risks.

What to Do After the high-risk Transactions?

It’s important to follow up with your customers after the transaction is done. You should give them a call right away after they get their product to make sure they got it and are happy with it. If not, you should give them a refund or a new one. If everything goes well and your customers are happy, thank them for buying from you and ask them to write a review.

The most important thing to learn from this is how to be ready for and know how to handle high risk card transactions so that you can run your business well.

Business is full of high risk transactions, but you can avoid them by being ready.


So, we’ve talked about high risk transactions and why you should know about them. You should also know how to get ready for these things so they don’t hurt your business. Now that you know what those situations might look like and how to handle them, it’s up to you to take the next step! 

Getting a high-risk merchant account is simple and has a lot of benefits. Contact PayPound at +44 800 832 1733 for a safe, reliable high-risk processor with 24/7 customer service. Join the page on LinkedIn!

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