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, plus most cases cost effective, source is from a 3rd party merchant account issuer.

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

Bankruptcy

Fraudulent Transactions

High quantity 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 unlawful in some jurisdictions.

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

Due towards the high risk classification, most banks will not provide an account provider to those who are in a perilous industry (such as adult entertainment, replica goods, pharmacy etc). As such some other providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers of developed to service high-risk merchants will normally provide a higher level of fraud protection, so as to decrease might their merchants incur. However, in order to cover the higher level of risk, rates high risk merchant account will possibly be higher than their lower risk counter-parts.

When looking for high risk merchant account, there are a number of factors if you want to take into mind. Rates will be one very sound factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You’ll need to contemplate fraud protection, customer service and reporting available for as a merchant account for online pharmacy.