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 a 3rd party offshore merchant account for pharmacy account organization.

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

Bankruptcy

Fraudulent Transactions

High amount 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 unlawful in some jurisdictions.

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

Due towards the high risk classification, most banks won’t provide a forex account to those invoved with a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some vacation providers offer their services to both general merchants and high-risk merchants.

Merchant account providers that have been developed to service riskly merchants will probably provide the next step of fraud protection, you will find that decrease the price of their merchants incur. However, in order to cover the higher level of risk, rates high risk merchant account will always be higher than their lower risk counter-parts.

When purchasing a high risk merchant account, there are a number of factors to be take into consideration. Rates will be one of the most basic factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. Require need to look into fraud protection, customer service and reporting available for as a merchant.