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, plus most cases cost effective, source is from a third party merchant account doctor.

A high risk merchant credit card is required by businesses that, when compared along with ‘traditional’ goods/services business, was at a higher risk of:

Bankruptcy

Fraudulent Transactions

High amount of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized for 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 history – Some providers will not accept merchants with poor or no credit history.

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

Merchant account providers that have been developed to service precarious merchants will most likely provide to the next stage of fraud protection, so as to decrease might their merchants incur. However, in order to cover the advanced of risk, rates for just about any high risk merchant account will definitely be higher than their lower risk counter-parts.

When hoping for a high risk merchant account, there are several factors to be take into mind. Rates will be one of the biggest factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You will need to contemplate fraud protection, customer service and reporting available you r as a merchant.