{"id":401,"date":"2020-08-10T18:44:01","date_gmt":"2020-08-10T18:44:01","guid":{"rendered":""},"modified":"2024-04-01T09:38:03","modified_gmt":"2024-04-01T09:38:03","slug":"risk-difference-between-low-risk-and-high-risk-accounts","status":"publish","type":"post","link":"https:\/\/ccbill.com\/doc\/risk-difference-between-low-risk-and-high-risk-accounts","title":{"rendered":"Risk Difference Between Low Risk and High Risk\u00a0Accounts"},"content":{"rendered":"\n

Introduction<\/h2>\n\n\n\n

CCBill payments platform accommodates and supports a myriad of business models, including various risk categories, allowing for a single payment solution for the different services or products your business offers. But navigating how your processing services are categorized as a specific risk classification can be confusing.<\/p>\n\n\n\n

A CCBill account can have different risk classifications depending on the type of service or product you offer, and how you offer them.<\/p>\n\n\n\n

High Risk<\/h2>\n\n\n\n

Why Is My Account Considered High Risk?<\/h3>\n\n\n\n

High Risk is a term used by financial institutions to classify specific business models based on those models' overall history of chargebacks, returns, and refunds. Some business models are burdened with higher levels of abuse carried out by both businesses and consumers.

Credit card brands and financial institutions want to protect cardholder rights and avoid any association with illegal activity and potential liability. Fraud-prevention initiatives, such as the MasterCard BRAM (Business Risk Assessment and Mitigation) program and Visa\u2019s Global Brand Protection Program (GBPP), use Merchant Category Codes (MCCs) to help detect, monitor and prevent brand-damaging activity.

A Merchant Category Code (MCC)<\/a> is a four-digit number used to classify a business entity based on the type of goods or services the company provides.

If your business model is perceived as High Risk, it does not necessarily indicate that your business is at a higher risk of chargebacks. It only means that your business model and the Merchant Category Code (MCC) in which your business falls are classified in such a manner.<\/p>\n\n\n\n

Types of businesses that are classified as High Risk:<\/strong><\/p>\n\n\n\n

Annual memberships<\/td>Adult digital products<\/td>Bail bonds<\/td><\/tr>
Business opportunities<\/td>Electronics sold online<\/td>Debt service<\/td><\/tr>
Home-based<\/td>Horoscope\/Fortune telling<\/td>Firearm dealers<\/td><\/tr>
Mail order or telephone order<\/td>Multi-level marketing (MLM)<\/td>Online auctions<\/td><\/tr>
Online dating sites<\/td>Software downloads<\/td>Telemarketing<\/td><\/tr>
Timeshare Advertising<\/td>Telecommunications (VOIP or Calling Cards)<\/td>Travel services<\/td><\/tr>
Direct Marketing - Inbound Telemarketing<\/td><\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n
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Please be aware that CCBill does not support all of the above-mentioned high-risk business models. For more information, please refer to CCBill's Acceptable Use Policy<\/a> and Merchant Terms And Conditions<\/a>.<\/p>\n<\/div>\n<\/div>\n\n\n\n

According to Which Criteria Do Credit Card Associations Categorize a Business?<\/h3>\n\n\n\n

As noted, credit card associations use Merchant Category Codes (MCCs) to classify a business. These are four-digit codes that define a business whenever a new merchant account is added to the System. During the registration process, Merchants are screened and those with a high risk MCC may be required to pay a fee to become a Visa Sponsored Merchant or be a part of MasterCard's Payment Facilitator Program, depending on the type of content or product represented.<\/p>\n\n\n\n

With CCBill, we work with the major card brands and follow their guidelines and policies as a company. The various card brands have different systems for classification and categories but align under standard MCCs.<\/p>\n\n\n

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Important Announcement<\/strong><\/p>\n

Starting April 17th, 2021 credit card associations shall begin classifying MCC 7273 (for U.S, Canada, EU, and UK merchants) and Merchant Category Code 5967 (for EU and UK merchants) as high-risk categories.<\/strong><\/p>\n

CCBill is updating its policies to reflect the planned update. New and existing CCBill merchants classified under the Merchant Category Code 7273 and\/or 5967 may be required to pay the High Risk Registration Fee.<\/p>\n<\/div>\n<\/div>\n\n\n\n

Visa<\/h4>\n\n\n\n

Visa classifies high-risk material (selling downloadable, digital merchandise and\/or services) under Merchant Category Codes 5962<\/strong>, 5966<\/strong>, 5967<\/strong>, 7995<\/strong>, and is only available to merchants in the Visa, Inc. regions of United States, Canada, and Europe.<\/p>\n\n\n\n