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 third party merchant account offerer.

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

Bankruptcy

Fraudulent Transactions

High volume 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 illegal in some jurisdictions.

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

Due to the high risk classification, most banks won’t provide a merchant account to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some outside providers offer their services to both general merchants and precarious merchants.

Merchant account providers which developed to service high risk merchants will probably provide the next stage of fraud protection, you will notice that decrease the price of their merchants incur. However, in order to cover the more fantastic range of risk, rates with a high risk merchant account will possibly be higher than their lower risk counter-parts.

When purchasing a high risk merchant account, there are many factors to be able to take into mind. Rates will be one of the most basic factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You will need to adopt fraud protection, customer service and reporting available for as a merchant.

Bookmark the permalink.