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 merchants the most popular, in addition as in most cases cost effective, source is from a 3rd party merchant account provider.

A high risk merchant card account is required by businesses that, when compared to a ‘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 illegitimate in some jurisdictions.

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

Due for the high risk classification, most banks won’t provide a offshore merchant account for pharmacy account to those who are in a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some outside providers offer their services to both general merchants and precarious merchants.

Merchant account providers that have been developed to service riskly merchants will most likely provide the next stage of fraud protection, so that you can decrease expense of their merchants incur. However, in order to cover the advanced level of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.

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