Downloadable Software Merchant

Downloadable software merchants are categorized as high risk. These merchants provide a digital product that does not have any type of tracking information attached to it. If a customer wants to question the charge, the product or receiving the product, this is very easy to do so. The merchant is unable to provide any documentation that the product was delivered or even sent out. In this scenario the merchant will be held responsible. If the merchant is out of business or discontinues processing than the payment processor is on the hook. It is very important that the merchant processor trusts the merchant.

Previous processing history and a prior track record are most important in the high risk payment processing space since that is the credibility of the merchant. With a regular merchant account based domestically in the US, the signer’s credit will also be part of the underwriting in building a profile of the merchant however, in the high risk offshore industry; the processing history is one of the only ways to verify how a business operates. Merchants with high volume on their processing statements show they do a lot of sales. A merchant with low refunds shows that the merchant does not have many unhappy customers and their product or service is not inferior. A merchant with high refunds shows that the product or service is not as it was advertised or sold, which is a red flag. High chargebacks show that there is a lack of customer service, the product or service is not as advertised. Low chargebacks show high satisfaction with the product or service and good customer service.

Offshore Merchants has been setting up high risk downloadable software merchant accounts since 2007. Merchant accounts are able to be approved and setup with 1-2 weeks depending on the previous history of the merchant.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.

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