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, in addition as in most cases cost effective, source is from one third party merchant account issuer.

A high risk merchant card account is required by businesses that, when compared together with ‘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 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 prohibited in some jurisdictions.

merchant account for pharmacy Credit history – Some providers won’t accept merchants with poor or no credit account.

Due into the high risk classification, most banks won’t provide an account provider 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 heavy risk merchants.

Merchant account providers that are developed to service high risk merchants will most likely provide the next step of fraud protection, you will notice that decrease charge their merchants incur. However, in order to cover the more fantastic range of risk, rates for virtually any high risk merchant account will be higher than their lower risk counter-parts.

When looking for a high risk merchant account, there are several factors to be take into consideration. Rates will be one very sound factors, and this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. Require need to contemplate fraud protection, customer service and reporting available you as a merchant.