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, plus most cases cost effective, source is from one third party merchant account provider.

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

Bankruptcy

Fraudulent Transactions

high risk merchant account for online pharmacy volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant 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 illegitimate in some jurisdictions.

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

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

Merchant account providers that are developed to service high risk merchants will broadly speaking provide a higher level of fraud protection, you will find that decrease expense of their merchants incur. However, in order to cover the more fantastic range of risk, rates for just about any high risk merchant account will continually be higher than their lower risk counter-parts.

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