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 pharmacy merchant services merchants the most popular, and in most cases cost effective, source is from an additional party merchant account offerer.

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

Bankruptcy

Fraudulent Transactions

High lots 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 prohibited in some jurisdictions.

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

Due to the high risk classification, most banks will not provide a forex account to those involved with a perilous industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vendor providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers that have been developed to service precarious merchants will most likely provide a higher level of fraud protection, so as to decrease might their merchants incur. However, in order to cover the advanced level of risk, rates for virtually any high risk merchant account will continually be higher than their lower risk counter-parts.

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