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 for online pharmacy 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 a 3rd party merchant account provider.

A high risk processing account is required by businesses that, when compared with ‘traditional’ goods/services business, have reached a higher risk of:

Bankruptcy

Fraudulent Transactions

High volume 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 history.

Due into the high risk classification, most banks won’t provide a forex account to people in a high risk industry (such as adult entertainment, replica goods, pharmacy etc). As such some vendor providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers of developed to service perilous merchants will normally provide the next step of fraud protection, with a purpose 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 possibly be higher than their lower risk counter-parts.

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