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.
Calculate Your Score →Free • 60 seconds • No signup required
