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 pharmacy merchant services merchants the most popular, in addition as in most cases cost effective, source is from a 3rd party merchant account doctor.

A high risk merchant 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 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 unlawful 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 merchant account to those who are in a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vacation providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers which developed to service high risk merchants will broadly speaking provide the next step of fraud protection, so as to decrease the price of their merchants incur. However, in order to cover the advanced level 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 exist several factors to be take into account. Rates will be one of the most basic factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You must need to contemplate fraud protection, customer service and reporting available you r as a merchant.