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, with the most cases cost effective, source is from another party merchant account for online pharmacy account provider.

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

Bankruptcy

Fraudulent Transactions

High lots of sales

High rate of refunds

High rate of charge-backs

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

Merchants Location – Some merchant account providers will not accept merchants from certain countries.

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

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

Due for the high risk classification, most banks will not provide a forex account to people in a perilous industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vacation providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers that have been developed to service perilous merchants will generally provide the next step of fraud protection, you will notice 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 possibly be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are several factors take into mind. Rates will be one of the most important factors, like includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You must need to look into fraud protection, customer service and reporting available to you as a merchant.