Category: News & Press

Who is Viewed as a High-Risk Vendor

Just the usage of the words “high-risk vendor” or “high-risk business” has a tendency to cause many to think the merchant is in the habit of selling problematic or suspicious products.  While some industries may get flagged as a high-risk vendor for the previous mentioned reasons, this is not necessarily the case for the many of the  companies deemed “high-risk.” For most of the companies listed as high-risk, their products or services they sell are legitimate and genuine, and are not all that controversial.
Why companies are labeled as high-risk includes a lot of factors that most people don’t know about. Let’s take a look at who is viewed as a high-risk vendor and how they are labeled this way.

Which Businesses are Considered High-Risk?

The most notable type of merchants in this category are adult bookstores, hemp oil vendors, and online gaming; just to name a few. But that’s not all the businesses that encompass the category of “high-risk”
Other businesses include:

  • Collection Agencies
  • E-Commerce
  • Multi-Level Marketing Companies
  • Telemarketing
  • Nutraceuticals
  • Travel Agencies
  • Fantasy Sports
  • Start Ups

What Makes a Business High-Risk?

Of course there are many more companies that fall under the umbrella high-risk vendors; however, the ones mentioned above are industries that are most well known.
So what do all these companies have in common which has them labeled as “high-risk.” Well, many of them have a tendency to attract customers online who purchase merchandise with stolen credit cards, or the business has a high number of “chargebacks” due to poor customer satisfaction ratings or because of a high potential for fraud. Almost all business that accept credit cards have had chargebacks due to theft or fraud; however, some of the industries already mentioned tend to have a higher rate of chargebacks than most.
Another factor that may make a company be considered “high-risk” is if the company has a history of bad credit or has been late paying their bills. This may make it harder for the business to get payment processor, or a loan from a bank.

The Two Factor Test

Two factors that most financial institutions take into account when determining a vendor as high risk are:

  1. The company operates within a high-risk industry (i.e. adult bookstores, online gaming, etc.)
  2. The risk of economic/monetary loss or failure (i.e. start up companies)

These factors are used by most banks and other financial institutions or payment processors when determining if a company is high-risk.
Yet, these factors are not able to encompass all business and industries, but they provide a solid foundation as how to judge certain companies and merchants as high-risk.

What to Expect if your Business is Considered High-Risk?

Although, many people have false ideas as to what a high-risk merchant is, it isn’t necessarily an end-all if your business is considered one.
When considering a payment processor, high-risk businesses will expect higher fees. Some of these fees include higher processing rates and account fees, a long-term contract, and possibly an early termination fee for ending the contract.

How We Can Help

Here, at T1 Payments, we provide a lot of benefits to our subscribers, unlike other payment processors. Some of these include chargeback management, encrypted and secure payment processing, risk and fraud management tools, accepting payments with lower limitations, and much, much more.


T1 Payments Describes ‘Debbie Test’ to


T1 Payments CEO Donald Kasdon was recently featured on, in which he described how he used his mother, Debbie, as a litmus test for the company taking on new merchants.

If Debbie and her friends want it, buy it, try it and love it, that’s good enough for Kasdon. Not only does the Debbie Test show him which products and services people actually want to buy, but it can also help ferret out the places in which customers may be overlooking fine print that could come back to bite them — and the processor.

To learn more about the “Debbie Test” and how T1 Payments weeds out sketchy merchants, read the full article here: How the ‘Debbie Test’ can Flag Sketchy Merchants

T1 Payments Sponsors World Kindness Day

The first 200 PAID vehicles through the gate will receive a FREE kindness ticket. There are no restrictions on the free ticket, and it can be used the same night for a second entry or passed along in kindness to a random stranger, friend in need.
Kindness is contagious, pass it along….
Thank you T1 Payments for participating in the kindness mission.
Glittering Lights at Las Vegas Motor Speedway 
World Kindness Day courtesy of T1 Payments

T1 Payments Sponsors Money 20/20 Conference in Las Vegas

T1 Payments, a card processing and payment technology company with more than 10,000 satisfied clients, will be sponsoring Money 20/20 in Las Vegas from October 23 through 26 at the Venetian Hotel.

Money20/20 organizes the largest global events enabling payments and financial services innovation for connected commerce at the intersection of mobile, retail, marketing services, data and technology. Event organizers expect more than 10,000 attendees – with 1,000 of those company CEOs – and participants from more than 3,000 different companies. Attendees will represent more than 75 different countries in an event that organizers tout as “critical to realizing the vision of disruptive ways in which consumers and businesses manage, spend and borrow money.”

Donald Kasdon, president and CEO, T1 Payments, commented: “Money 20/20 and T1 Payments are both young organizations, and we both pride ourselves in fundamentally disrupting the status quo. It’s the premier event in the fintech industry, and it’s vital for us to showcase our strength in technology and customer service, our depth of industry relationships, and our commitment to staying two steps ahead of developments in security at what promises to be another groundbreaking industry gathering.”

T1’s Donald Kasdon is available to speak with the media about his company’s unique customer-service philosophy, and about technological developments in the industry. He will be on-site at Money 20/20 from October 23 through 26. To arrange an interview, contact Dave Van de Walle at dave(at)lifeflipmedia(dot)com or 1.224.766.0003


For more information about T1 Payments, visit Twitter: @T1Payments