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, in addition as in most cases cost effective, source is from one third party merchant account for online pharmacy account organization.

A high risk merchant account is required by businesses that, when compared along with ‘traditional’ goods/services business, close to 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 being 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 report – Some providers will not accept merchants with poor or no credit history.

Due into the high risk classification, most banks won’t provide business relationship to those involved with a danger industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some other providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers that have been developed to service perilous merchants will normally provide a higher level of fraud protection, so as to decrease charge their merchants incur. However, in order to cover the more fantastic range of risk, rates for virtually any high risk merchant account will definitely be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are several factors if you want to take into mind. Rates will be one of the most important factors, like includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You’ll need to contemplate fraud protection, customer service and reporting available for as a merchant.