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 merchants the most popular, with the most cases cost effective, source is from an additional party merchant account organization.

A high risk merchant credit card is required by businesses that, when compared into a ‘traditional’ goods/services business, was at 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 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 illegal in some jurisdictions.

Merchant Credit standing – Some providers will not accept merchants with poor or no credit history.

Due towards high risk classification, most banks will not provide your free account to those who are in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some third party providers offer their services to both general merchants and high risk merchants.

Merchant account providers of developed to service high risk merchants will generally provide to the next stage of fraud protection, so as to decrease expense of their merchants incur. However, in order to cover the advanced of risk, rates for just about any high risk merchant account will continually be higher than their lower risk counter-parts.

When hoping for a high risk merchant account providers for online pharmacy account, there are several factors to be able to take under consideration. Rates will be one of the most important factors, like includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You will need to look into fraud protection, customer service and reporting available a person as a merchant.