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, and in most cases cost effective, source is from a third party merchant account organization.

A high risk merchant credit card is required by businesses that, when compared along with ‘traditional’ goods/services business, have a a higher risk of:

Bankruptcy

Fraudulent Transactions

High quantity 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 won’t 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 account.

Due into the high risk classification, most banks won’t provide a merchant account to those invoved with 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 that happen to be developed to service perilous merchants will broadly speaking provide a higher level of fraud protection, you will notice that decrease the price of their merchants incur. However, in order to cover the level up 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 many factors take note. Rates will be one of the most important factors, and this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You must need to contemplate fraud protection, customer service and reporting available to you as a merchant account providers for online pharmacy.

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