Who Needs a High Risk Merchant Account?

Merchant accounts are required in order for a business to accept credit card payments. As a merchant, there are two places you can obtain a merchant account; a bank, or a third party provider. For online merchants the most popular, so in most cases cost effective, source is from another party merchant account offerer.

A high risk merchant credit card is required by businesses that, when compared into a ‘traditional’ goods/services business, have reached a higher risk of:

Bankruptcy

Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized for a high risk are:

Merchants Location – Some merchant account providers will not accept merchants from certain countries.

The Product/Service the merchant sells is illegitimate in some jurisdictions.

Merchant Credit record – Some providers won’t accept merchants with poor or no credit track record.

Due to the high risk classification, most banks will not provide business relationship to those in a high risk industry (such as adult entertainment, replica goods, pharmacy etc). As such some vacation providers offer their services to both general merchants and precarious merchants.

Merchant account providers that happen to be developed to service high risk merchants will generally provide the next step of fraud protection, so that you can decrease expense of their merchants incur. However, in order to cover the more fantastic range of risk, rates with a high risk merchant account will continually be higher than their lower risk counter-parts.

When purchasing a high risk merchant account, there many factors to be able to take note. Rates will be one of the most important factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You will need to adopt fraud protection, customer service and reporting available a person as a merchant account for online pharmacy.