How is a risk reserve determined?

When we receive an eCheck.Net application, it goes through an underwriting process by our finance team. Some of the reasons a merchant is assessed a risk reserve are the following:
  • Amount of time the company has been in business.
  • Amount of time the company has conducted business with Authorize.Net.
  • The condition of the financial information provided.
  • The condition of the personal guarantee provided.
  • The type of industry the company is in.
  • The company's transaction history with Authorize.Net.
  • All of these factors help to determine the risk reserve for the account.
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