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, in addition as in most cases cost effective, source is from an additional party merchant account doctor.

A high risk merchant card account is required by businesses that, when compared along with ‘traditional’ goods/services business, was at 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 to be 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 history – Some providers won’t accept merchants with poor or no credit history.

Due towards the high risk classification, most banks won’t provide a merchant account to those in a high risk industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some vacation providers offer their services to both general merchants and precarious merchants.

Merchant account providers that have been developed to service perilous merchants will broadly speaking provide to the next stage of fraud protection, you will notice that decrease expense of their merchants incur. However, in order to cover the advanced of risk, rates for virtually any high risk merchant account will possibly be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are a number of factors if you want to take into mind. 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. You’ll need to think about fraud protection, customer service and reporting available you as a merchant.