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 one third party merchant account doctor.

A high risk processing account is required by businesses that, when compared to a ‘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 will not accept merchants from certain countries.

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

Merchant Credit report – Some providers will not accept merchants with poor or no credit foundation.

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

Merchant account providers that have been developed to service precarious merchants will most likely provide the next stage of fraud protection, you will find that decrease might their merchants incur. However, in order to cover the advanced of risk, rates high risk merchant account will continually be higher than their lower risk counter-parts.

When looking for high risk merchant account, there exist several factors if you want to take into mind. 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 ongoing fees. Then you will need to adopt fraud protection, customer service and reporting available you r as a merchant.