Who Needs a High Risk Merchant Account?

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 merchants the most popular, in addition as in most cases cost effective, source is from one third party merchant account offerer.

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

Bankruptcy

Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant account providers for online pharmacy may be categorized to be 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 history – Some providers won’t accept merchants with poor or no credit history.

Due towards high risk classification, most banks will not provide business relationship to those involved with a danger industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some vacation providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers of developed to service high risk merchants will broadly speaking provide the next step of fraud protection, you will notice that decrease charge their merchants incur. However, in order to cover the advanced of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.

When looking for high risk merchant account, there many factors take under consideration. Rates will be one of the most basic factors, like 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 for as a merchant.