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 a 3rd party merchant account offerer.

A high risk merchant account is required by businesses that, when compared into a ‘traditional’ goods/services business, close to 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 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 against the law in some jurisdictions.

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

Due towards high risk classification, most banks will not provide a forex account to those in a high risk industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some other providers offer their services to both general merchants and high-risk merchants.

Merchant account providers that have been developed to service perilous merchants will most likely provide a higher level of fraud protection, so that you can decrease the cost their merchants incur. However, in order to cover the more fantastic range of risk, rates 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 are several factors if you want to take into account. Rates will be one of the biggest factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Require need to think about fraud protection, customer service and reporting available you r as a merchant.