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 pharmacy merchant services merchants the most popular, so in most cases cost effective, source is from an additional party merchant account offerer.

A high risk merchant account is required by businesses that, when compared with ‘traditional’ goods/services business, close to a higher risk of:

Bankruptcy

Fraudulent Transactions

High sum 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 history – Some providers won’t accept merchants with poor or no credit details.

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

Merchant account providers that are developed to service perilous merchants will broadly speaking provide a higher level of fraud protection, so that you can decrease might their merchants incur. However, in order to cover the higher level of risk, rates for a high risk merchant account will continually be higher than their lower risk counter-parts.

When hoping for a high risk merchant account, there are several factors to be able to take under consideration. Rates will be one of the most important factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You’ll need to think about fraud protection, customer service and reporting available to you as a merchant.