Who Needs a High Risk Merchant Account?

Merchant accounts are needed 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 pharmacy merchant services merchants the most popular, plus most cases cost effective, source is from a 3rd party merchant account issuer.

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

Bankruptcy

Fraudulent Transactions

High quantity of sales

High rate of refunds

High rate of charge-backs

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

Merchants Location – Some merchant account providers won’t accept merchants from certain countries.

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

Merchant Credit file – Some providers will not accept merchants with poor or no credit track record.

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

Merchant account providers that are developed to service high-risk merchants will most likely provide the next stage of fraud protection, you will notice that decrease charge their merchants incur. However, in order to cover the more fantastic range of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are many factors if you want to take note. Rates will be one of the most basic factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You must need to contemplate fraud protection, customer service and reporting available you r as a merchant.

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