How GuardScore Works
Payment Compliance Scoring Explained
GuardScore is a 0-100 payment compliance risk score that predicts payment processor approval likelihood. Built on enterprise-grade machine learning validated against real merchant outcomes, it analyzes multiple risk dimensions including VAMP exposure, operational health, and our proprietary AI Fraud Exposure layer—giving you the most accurate assessment of your merchant account health available today.
Like a Credit Score, But for Payment Risk
You already understand credit scores—GuardScore works the same way, but measures different risk
Measures: Debt repayment ability
- •Payment history (35%)
- •Credit utilization (30%)
- •Credit history length (15%)
- •Credit mix (10%)
- •New credit (10%)
Measures: Payment processing risk
- •VAMP ratio (35%)
- •Operational metrics (30%)
- •AI Fraud Exposure (20%)
- •Maturity signals (15%)
What Affects Your GuardScore?
Five weighted factors combine to create your final score
Chargeback Rate
35% WeightThe #1 factor in your score. Chargebacks divided by total transactions. VAMP threshold is 0.9%—exceed it and your score plummets. Processors use this to predict future risk.
⚠ Okay: 0.5-0.9% (60-79 score)
✗ Bad: Over 0.9% (0-59 score, VAMP penalties)
AI Fraud Exposure
20% WeightOur breakthrough feature. Measures how vulnerable your checkout is to AI-powered fraud attacks: deepfakes, synthetic identities, account takeover bots. We analyze your MFA strength and checkout platform security posture.
Industry Risk
20% WeightYour MCC code matters. High-risk industries (CBD, gaming, crypto, nutraceuticals, travel) start with lower baseline scores. Processors have industry-specific thresholds and approval rates.
Medium Risk: E-commerce, subscriptions (neutral)
High Risk: CBD, gaming, forex, adult (-20 points)
Compliance Factors
15% WeightPCI-DSS compliance, terms of service quality, refund policy clarity, privacy policy, SSL certificates, regulatory licenses. The operational hygiene processors check during underwriting.
Business Velocity
5% WeightProcessing history length, volume trends, account age. Sudden volume spikes or brand-new merchants trigger closer scrutiny. Steady growth is good; 10x overnight growth is suspicious.
What Your Score Means
Real merchant examples at each score range
LOW RISK - Excellent
Example Merchant: SaaS company, 0.3% chargeback rate, 12 months processing history, $50K/month volume, PCI compliant, 3DS enabled
What This Means: You'll get approved by 95%+ of processors. Stripe, PayPal, Square, Adyen—take your pick. Low reserve requirements, fast payouts, minimal scrutiny. Your biggest challenge is negotiating better rates.
MEDIUM RISK - Good
Example Merchant: E-commerce, 0.8% chargeback rate, 6 months history, $30K/month, some fraud tools but not 3DS, medium-risk industry
What This Means: You'll get approved by 60-70% of processors. Expect higher scrutiny, rolling reserves (5-10%), and conditional approvals. Focus on getting chargeback rate under 0.5% to unlock better options.
HIGH RISK - Needs Immediate Attention
Example Merchant: CBD merchant, 1.8% chargeback rate, 3 months history, $15K/month, minimal fraud tools, unclear refund policy
What This Means: Mainstream processors will reject you. Approval rate under 30%. You need specialized high-risk processors with 10-15%+ reserves, longer payout delays, and higher fees. Priority: Get chargebacks under control immediately.
Calculate Your Score →
Now that you understand how GuardScore works, see where you stand. Get your free score in 60 seconds.
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