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 merchants the most popular, and in most cases cost effective, source is from another party merchant account offerer.

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

Bankruptcy

Fraudulent Transactions

High amount of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized for a high risk are:

Merchants Location – Some merchant account providers won’t accept merchants from certain countries.

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

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

Due into the high risk classification, most banks will not provide an account provider to people in a danger industry (such as adult entertainment, replica goods, pharmacy etc). For this reason some vendor providers offer their services to both general merchants and precarious merchants.

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

When looking for a high risk pharmacy merchant account risk merchant account, there exist several factors to be able to take into mind. Rates will be one very sound factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. Then you will need to adopt fraud protection, customer service and reporting available you as a merchant.