High Average Ticket Merchant Risks
A higher average ticket makes it more likely that a merchant goes over the 1-2% limit of chargeback volume to sales volume set by card associations. For example, if you sell high cost items, then getting only one or two high dollar disputes can skew the ratio and result in fines, sanctions, or audits.
In addition, chargebacks on high average tickets are also more likely to drain a merchant’s cash flow, leaving institutions wondering if the merchant can pay for additional chargebacks.
Our Merchant Account Specialist will help you find a solution if you are in a high average ticket industry.