eCommerce Tycoon

**Dr.Zaius** · 09-27-2007, 05:29 PM

I've seen a few threads and post about low and high risk transactions for payment processing. How do you guys determine this because im getting started in software apps, and someone mentioned on another thread that software apps are high risk.

So how do you determine whats high risk to low risk? How do you guys niche them? Any good resources on this topic?

**ForrestCroce** · 09-29-2007, 12:24 AM

What company do you run your payments through?

**crazkanuk** · 09-30-2007, 05:46 PM

Each company is different, but there are a few things that are common. Number one, digital products are always higher-risk because it is nearly impossible to confirm the product was delivered.

Also, membership sites are difficult to sell to your payment processor, but it can be done, I usually keep track of logins.

Finally, adult products are always difficult because nobody wants to admit to buying them.

Apart from these common high-risk products you should check with the payment services company to see what are the borderline products in their TOS.

**ADAM Web Design** · 09-30-2007, 06:39 PM

Software applications would definitely be high-risk, because it would be too easy to order something, say you didn't get it, get the money back, and keep your pirated copy of whatever.

One thing most people forget about credit card commerce is that burden of proof falls on the merchant, and soft goods are harder to prove delivery of than hard goods are. But what's really stupid is that the banks would actually make more money off the high-risk vendors, even if merchant discount rates were identical. They get like $35/$40 per chargeback transaction, and most vendors don't bother to try and get it back.

**Dr.Zaius** · 02:29 PM

I agree with you with guys i was trying to get a better understand because im new into the software app scene.

Im going to go with ecsuite [dot] com. They have this handy little download manager I think its going to help with people that claim they didnt receive my products.

The manager will track my downloads and confirm they were successfully downloaded it also resumes downloads if connection is lost, and that save me a few bucks on bandwidth.

Im not going to do subscription and no adult anything else i should keep an eye for? Im hoping to lanuch really soon and i dont really want too many surprizes thats why i ask these questions.