Who Needs a High Risk Merchant Account?

merchant account providers for online pharmacy 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, plus 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 to a ‘traditional’ goods/services business, have a 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 as a high risk are:

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

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

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

Due to the high risk classification, most banks won’t provide business relationship to people in a danger industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vendor providers offer their services to both general merchants and high risk merchants.

Merchant account providers that happen to be developed to service precarious merchants will generally provide the next step 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 definitely be higher than their lower risk counter-parts.

When looking for a high risk merchant account, there are several factors to be take note. Rates will be one of the most basic factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Require need to look into fraud protection, customer service and reporting available for as a merchant.