Merchant account that accepts 2-3% Chargeback ratio

[redoct2k3]

I am sadly, in the digital download business and have problems keeping the chargeback ratio below 1%. It usually is around 1.5% but I hear that most merchant accounts don't like that.

I read somewhere that porn sites tend to have chargeback ratios in the 10% range... is this true? If so, then there must be a merchant that will process for them. (I am not selling porn, just using as an example)

I am based in the US. I have been told by a bluepay.com that because of the nature of how the item is shipped (via download), they cannot process for me. I was further told to find a high risk merchant provider, not because of the product, but because of its shipping.

So, does anyone know of any merchant providers that will handle 2%ish chargeback? Again I am based in the US.

[JSebastian]

What causes the rate to be this high? Isn't there another way for your client to "settle" their issue, besides a charge back?

[Tourz]

Isn't there another way for your client to "settle" their issue, besides a charge back?

In this case I imagine that the clients are probably trying to get away with not paying by doing a chargeback.

I read the other day that First American was being sued for working with fraudulent telemarketers so they may be willing to offer high risk merchant accounts.

[edited by: Tourz at 12:21 am (utc) on Aug. 29, 2006]