Category: High risk payment

  • Rolling Reserves & Risk Ratios Explained for EU Merchants

    Rolling Reserves & Risk Ratios Explained for EU Merchants

    In the European payments ecosystem, rolling reserves and risk ratios define how much of your transaction volume stays on hold, especially if you’re in a high risk industry like gaming, forex, crypto, or CBD.

    At KunnectPayments, we help merchants reduce reserve percentages and negotiate better terms with acquirers and PSPs, so your cash flow stays strong.

    1. What Is a Rolling Reserve?

    A rolling reserve is a portion of each transaction (usually 5–10%) that your acquiring bank withholds for a set period, typically 90 to 180 days.
    It acts as a safety buffer for potential chargebacks or refunds.

    💡 Example:
    If your business processes €100,000 monthly with a 10% reserve, €10,000 is held back and released after 90 days.

    2. Why It Exists in the EU Market

    EU acquirers follow PSD2 and EBA guidelines that emphasize risk mitigation. High risk merchants face higher reserves due to:

    • Elevated chargeback rates
    • New or unproven business models
    • Cross border transactions
    • High ticket or subscription based payments

    3. What Are Risk Ratios?

    Risk ratios measure your chargeback-to-transaction ratio, refund frequency, and fraud score.
    If these metrics exceed 1%, acquirers may increase reserves or freeze settlements.

    💡 KunnectPayments monitors your live ratios and flags risks before banks act.

    4. How KunnectPayments Minimizes Reserves

    We use data-driven profiling and strong acquirer relationships to secure better terms:

    • Negotiate lower reserve rates (as low as 3%)
    • Automate chargeback reduction with AI based fraud filters
    • Provide transparent dashboards to monitor funds held
    • Work with multiple acquirers to diversify risk

    💡 Merchants processing via KunnectPayments often see reserve release timelines reduced by up to 40%.

    5. The EU Advantage with KunnectPayments

    • EU compliant setup under PSD2, MiCA, and AMLD6
    • Fast track onboarding with pre approved acquirer networks
    • Local currency settlements and transparent reserve reporting

    Rolling reserves are part of doing business in Europe’s high risk sectors but they don’t have to choke your growth.

    With KunnectPayments, merchants get smart reserve management, real time visibility, and bank relationships built to scale safely.

    Partner with KunnectPayments today to reduce your rolling reserves and unlock steady cash flow.

  • EU Acquiring Banks: How High Risk Merchants Get Approved

    EU Acquiring Banks: How High Risk Merchants Get Approved

    Getting approved by acquiring banks in Europe can be the toughest step for high risk merchants, especially in industries like gaming, forex, crypto, CBD, and gambling.

    At KunnectPayments, we specialize in helping high risk businesses navigate this process with regulatory readiness, risk documentation, and bank relationships that actually understand your model.

    1. Why Approval Is Difficult

    European acquirers are heavily regulated under PSD2, AMLD6, and EBA guidelines. They evaluate:

    • Chargeback ratios
    • Business model risk
    • Ownership transparency
    • AML/KYC compliance

    A single compliance gap can lead to rejection or high reserves.

    2. Documents Acquirers Require

    To build trust and pass due diligence, merchants must prepare:

    • Company incorporation documents
    • Shareholder & UBO details
    • Processing history (3–6 months)
    • Compliance & AML policies
    • Website & business proof

    💡 KunnectPayments provides pre submission compliance checks and document templates for faster approvals.

    3. How KunnectPayments Simplifies It

    Our expert team connects merchants with EU accredited acquiring banks that accept high risk profiles. We:

    • Match your business type with the right acquirer
    • Handle KYC/AML onboarding end-to-end
    • Offer rolling reserve negotiation and settlement optimization
    • Ensure PSD2, MiCA, and GDPR compliance

    💡 We’ve helped merchants in 20+ EU countries get approved within days instead of weeks.

    4. The KunnectPayments Edge

    • Pre screening for approval likelihood
    • Acquirer network specialized in high risk sectors
    • Support for card, SEPA, crypto, and alternative payments
    • Transparent communication between bank, merchant, and processor

    Approval from EU acquiring banks doesn’t have to be painful. With the right documents, compliance, and a partner who knows the system, your high risk business can process payments confidently.

    Partner with KunnectPayments to secure your acquiring approval in Europe and start scaling globally.

  • High Risk Payment Solutions in Europe: How Merchants Can Scale Safely?

    High Risk Payment Solutions in Europe: How Merchants Can Scale Safely?

    Running a business in high risk industries like gaming, crypto, forex, CBD, or gambling is profitable but challenging in Europe. Banks and PSPs apply stricter checks, higher reserves, and tighter monitoring because of PSD2, AMLD6, and MiCA regulations.

    At KunnectPayments, we help European merchants in high risk sectors accept payments confidently with compliant onboarding, multi currency processing, and chargeback protection.

    What “High Risk” Merchants Face Challenges ?

    European acquirers classify certain industries as “high risk” due to chargebacks and regulatory exposure. This means longer onboarding, higher fees, and complex compliance. Choosing a partner who understands these nuances is key.

    How KunnectPayments Helps ?

    • Specialized PSP & PayFac Solutions: Tailored setups for high risk verticals, including sub-merchant onboarding and rolling reserves.
    • Fast, Compliant Onboarding: Automated KYC/AML checks to reduce friction and approval time.
    • Multi Rail Payment Options: Accept cards, SEPA, eWallets, and crypto under MiCA guidelines.
    • Chargeback Management: Built in tools to detect fraud and protect your merchant account.
    • SD2 & MiCA Ready: Full compliance with EU payment regulations and licensing frameworks.

    Scale Safely Across Europe

    With KunnectPayments, high risk merchants can process payments across borders while staying compliant and maximizing approval rates.

    Looking for a trusted high risk payment partner in Europe?

    Contact KunnectPayments to build a secure, scalable payment solution today.