Who Needs a High Risk Merchant Account?

Merchant accounts are required 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, with the most cases cost effective, source is from a third party merchant account issuer.

A high risk credit card merchant account is required by businesses that, when compared into a ‘traditional’ goods/services business, are 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 being a high risk are:

Merchants Location – Some merchant account providers will not accept merchants from certain countries.

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

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

Due towards high risk classification, most banks won’t provide your free account to people in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some vacation providers offer their services to both general merchants and high-risk merchants.

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

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