Merchant exposure is the total loss if a merchant becomes insolvent or fails to fulfill its contractual obligations. Exposure can generally be considered as the value of processing during a merchant's average delivery period.

Merchant exposure calculation considers factors including transaction volume, merchant category code (MCC), chargeback ratio, geographic location, payment methods accepted, and business history.

Some businesses are inherently riskier than others. Anything with high chargeback rates, frequent fraud, or regulatory scrutiny is more likely to be flagged. For example, subscription services, adult content, travel, and CBD products tend to have more disputes and compliance challenges. High transaction volumes and certain payment methods like prepaid cards also increase exposure.

Examples include travel, event ticketing, crowdfunding, delayed-fulfillment e-commerce, and subscription services. These businesses tend to process large payments long before delivering goods or services, increasing refund and dispute risk.

Coris continuously monitors merchant behavior, transaction patterns, and refund trends. Its built-in exposure calculator identifies high-risk merchants early, enabling you to apply controls and automate risk decisions.