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 merchants the most popular, in addition as in most cases cost effective, source is from one third party merchant account provider.

A high risk merchant account is required by businesses that, when compared to a ‘traditional’ goods/services business, was at 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 like a high risk are:

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

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

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

Due into the high risk classification, most banks won’t provide business relationship to those who are in a high risk industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some outside providers offer their services to both general merchants and precarious merchants.

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

When hunting for a high risk merchant account for online pharmacy risk merchant account, there exist several factors to be able to take under consideration. Rates will be one of the most important factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You’ll need to adopt fraud protection, customer service and reporting available you r as a merchant.