At QubePay, we play a proactive role in safeguarding the payment system. We provide robust onboarding, monitoring, and risk control tools to protect our partners, acquiring banks, and cardholders alike.
What Are Merchant Risk Categories?
Merchants are generally classified by risk level depending on their industry type, transaction behaviour, and likelihood of chargebacks, fraud, or regulatory breaches. This is defined based on:
- Business model and industry (MCC codes)
- Transaction volume and velocity
- Chargeback and fraud history
- Regulatory requirements
These categories are typically grouped into:
🟢 Low-Risk Merchants
- Physical retail (in-person)
- Low-ticket eCommerce
- Subscription services with clear refund policies
🟡 Medium-Risk Merchants
- Software and SaaS platforms
- Membership-based services
- Nutraceuticals and health products
🔴 High-Risk Merchants
- FX trading, crypto, adult content, gambling/gaming
- Travel & ticketing, collectables
- High-ticket luxury goods and electronics
Understanding Scheme Rules (Visa/Mastercard)
Visa and Mastercard require acquirers and PSPs to follow strict monitoring programmes to identify risky merchants. These include:
- Visa Acquirer Monitoring Program (VAMP)
- Visa Chargeback Monitoring Program (VCMP)
- Mastercard Excessive Chargeback Program (ECP)
- TC40 / SAFE reporting for fraud activity
Failure to comply can result in fines, monitoring programmes, or even termination of merchant accounts. This makes ongoing due diligence and real-time risk management critical for all stakeholders.
How QubePay Protects the Ecosystem
At QubePay, we understand the weight of compliance and risk management. Here’s how we help merchants and acquirers stay safe:
✅ Rigorous Onboarding & KYC
We conduct comprehensive AML and KYC assessments, validating merchant legitimacy and ensuring regulatory compliance from the outset.
🔍 Real-Time Fraud & Chargeback Monitoring
Using AI-driven tools and rule-based systems, we monitor transactions in real-time to flag suspicious activity and prevent fraud.
📊 Transparent Reporting & Alerts
We provide merchants and banks with detailed transaction reports, chargeback ratios, and fraud alerts to ensure ongoing visibility and compliance.
🔐 Advanced Risk Controls
We implement tools like:
- Velocity checks
- 3D Secure (2.0)
- BIN/IP matching
- Geo-blocking for high-risk regions
🌐 Partnership with Visa and Mastercard
As a licensed PSP and official ISO partner of Visa and Mastercard, we stay up-to-date with scheme mandates and help clients implement best practices to avoid violations and reduce risk exposure.
A Smarter Way to Manage Online Payments
In today’s global payment landscape, understanding merchant risk is not just a requirement, it’s a necessity. Whether you operate a low-risk eCommerce business or a high-risk trading platform, QubePay provides the expertise, tools, and technology to ensure safe, scalable, and compliant payment processing.
Get in touch with our compliance team today to see how we can help your business stay secure while growing globally.
