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, so in most cases cost effective, source is from another party merchant account doctor.

A high risk processing account is required by businesses that, when compared along 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 like a high risk are:

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

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

Merchant Credit record – Some providers will not accept merchants with poor or no credit history.

Due towards high risk classification, most banks won’t provide business relationship to those in a danger industry (such as adult entertainment, replica goods, pharmacy etc). For this reason some vacation providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers that have been developed to service precarious merchants will generally provide to the next stage of fraud protection, so that you can decrease expense of their merchants incur. However, in order to cover the level up of risk, rates for just about any high risk merchant account for online pharmacy risk merchant account will continually be higher than their lower risk counter-parts.

When purchasing a high risk merchant account, there many factors to be take into consideration. Rates will be one very sound factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You’ll need to take into account fraud protection, customer service and reporting available a person as a merchant.