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Anone familiar with the charge back ratios for merchant accounts?

I am starting a monthly re-occurring billing service that will no doubt have lots of charge backs from customers. I'm trying to figure out whether or not I need to go with a high risk merchant that takes a higher percentage, or to go with a "normal" domestic based merchant.

Any feedback would be appreciated. Thanks!

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I'd need to know your specific product before I could take a guess. – Michael Pryor Mar 7 '11 at 23:13
Consider making your title a question... – Nikolay Piryankov Mar 8 '11 at 10:07

1 Answer

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  • If you are a B2B merchant, your chargeback ratios will (should) be near zero.
  • If you are selling directly to consumers, your chargeback ratios will go up.
  • If you are selling luxury items that people would like to buy with stolen credit cards (electronics, equipment, jewelry), your chargeback rates will be very high.
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Hi Mich, sorry for this question within a question. I was wondering if you have any thoughts on this related question: answers.onstartups.com/questions/21263/… – Nikolay Piryankov Mar 8 '11 at 10:06

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