How Average Ticket Impacts High Risk Merchant Account

by Jason Simms Opening a High Risk Merchant Account

The average ticket is generally a simple way to predict the risk associated with a merchant account, account activity and interchange fees. It is the value we get by dividing the total number of sales done by a merchant in dollars in a given period of time by total transactions made. A high average ticket impacts a high risk merchant account in certain ways.

How Average Ticket Affects A High Risk Merchant Account

A higher than normal average ticket always needs a high risk merchant account and puts the acquiring bank at a greater risk. The bank may have to confront significant consequences like higher than usual incidents of chargebacks, merchant failure and fines and sanctions due to the card associations’ chargeback threshold being crossed.

At times, merchants are not able to even pay fees, fines and chargebacks associated with their merchant accounts. All these consequences often result in high risk credit card processing. Huge sale amounts make transactions complicated for a cardholder.