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, so in most cases cost effective, source is from one third party merchant account issuer.

A high risk processing account is required by businesses that, when compared to a ‘traditional’ goods/services business, have reached 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 won’t accept merchants from certain countries.

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

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

Due to the high risk merchant account for online pharmacy risk classification, most banks won’t provide an account provider to those who are in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). As such some vendor providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers that have been developed to service riskly merchants will probably provide the next step of fraud protection, you will notice that decrease expense of their merchants incur. However, in order to cover the advanced level of risk, rates with a high risk merchant account will continually be higher than their lower risk counter-parts.

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