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, with the most cases cost effective, source is from another party merchant account organization.

A high risk merchant card account is required by businesses that, when compared to 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 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 prohibited in some jurisdictions.

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

Due towards high risk classification, most banks will not provide business relationship to those invoved with a danger industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some vacation providers offer their services to both general merchants and high-risk merchants.

offshore merchant account for pharmacy account providers of developed to service precarious merchants will probably 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 just about any high risk merchant account will be higher than their lower risk counter-parts.

When looking for a high risk merchant account, there exist several factors if you want to take into consideration. Rates will be one of the biggest factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You will need to take into account fraud protection, customer service and reporting available for as a merchant.