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, so in 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 to a ‘traditional’ goods/services business, was at a higher risk of:

Bankruptcy

Fraudulent Transactions

High sum of sales

high risk pharmacy merchant account 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 won’t accept merchants from certain countries.

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

Merchant Credit report – Some providers will not accept merchants with poor or no credit track record.

Due towards high risk classification, most banks will not provide a forex account to people in 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 which developed to service riskly merchants will broadly speaking provide to the next stage of fraud protection, so that you can decrease the price of their merchants incur. However, in order to cover the more fantastic range of risk, rates for a high risk merchant account will possibly be higher than their lower risk counter-parts.

When looking for high risk merchant account, there are several factors take into mind. 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. Then you will need to contemplate fraud protection, customer service and reporting available you r as a merchant.