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 third party merchant account doctor.

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

Bankruptcy

Fraudulent Transactions

High amount of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant account providers for online pharmacy 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 against the law in some jurisdictions.

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

Due for the high risk classification, most banks won’t provide a forex account to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some outside providers offer their services to both general merchants and high risk merchants.

Merchant account providers of developed to service high risk merchants will normally provide the next step of fraud protection, you will find that decrease charge their merchants incur. However, in order to cover the higher level of risk, rates for virtually any high risk merchant account will definitely be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there exist several factors to be able to take into consideration. 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 ongoing fees. You will need to think about fraud protection, customer service and reporting available a person as a merchant.