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, with the most cases cost effective, source is from an additional party merchant account offerer.

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

Bankruptcy

Fraudulent Transactions

High sum of sales

High rate of refunds

High rate of charge-backs

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

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

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

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

Due towards the high risk classification, most banks will not provide your free account to those who are in a danger industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some other providers offer their services to both general merchants and high-risk merchants.

Merchant account providers which developed to service high risk merchant account for online pharmacy risk merchants will generally provide the next stage of fraud protection, you will notice that decrease might their merchants incur. However, in order to cover the more fantastic range of risk, rates for just about any high risk merchant account will continually be higher than their lower risk counter-parts.

When hoping for a high risk merchant account, there exist several factors take into account. Rates will be one very sound factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Require need to look into fraud protection, customer service and reporting available you as a merchant.