Evaluate Risk Before Taking On Merchant Transaction Accounts

Guest column by Garima Shah, eMerchantPay Ltd

Garima Shah

Garima Shah, Head of U.S. Sales at eMerchantPay explained in an expert article of  ISO&Agent publication the essentials in how to evaluate risk before taking on merchant transaction accounts. The article shares industry know-how and insights from the merchant approval process at eMerchantPay and was well accepted among the payment processing professionals worldwide.

Article published in ISO&Agents Magazine 

ISOs and agents should understand, manage and control the risk involved in merchant processing. That requires knowing the rules, regulations and guidelines of the card brands and regulators.

Knowing the in-house risk liability and accountability enables ISOs to offer merchant accounts to businesses of all types and sizes, even in high-risk situations where merchants could not previously secure approval.

Online businesses are usually considered to have high risk exposure. That’s why it’s crucial to set specific guidelines for the category to limit the risk and perform constant monitoring of the risk performance.The risk department should identify and control merchant risk by thoroughly investigating and evaluating the quality of goods and services the merchants offer their customers.Depending on the assessed risk, the merchant needs to maintain reserves with the processing bank. The risk department scrutinizes activities daily, weekly and monthly, keeping an eye on key areas of merchants’ sales activities and periodically reviewing the financial status of high-volume merchants.

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