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, and in most cases cost effective, source is from a third party merchant account doctor.

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

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

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

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

Due into the high risk classification, most banks will not provide your free account to those who are in a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some third party providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers of developed to service high risk merchants will most likely provide the next step of fraud protection, with a purpose to decrease charge their merchants incur. However, in order to cover the advanced level of risk, rates for virtually any high risk merchant account will possibly be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there many factors if you want to take into mind. Rates will be one very sound factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Then you will need to think about fraud protection, customer service and reporting available a person as a merchant.