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Who Needs a High Risk Merchant Account?

Merchant 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 pharmacy merchant services merchants the most popular, in addition as in most cases cost effective, source is from an additional party merchant account issuer.

A high risk merchant card account is required by businesses that, when compared together with 'traditional' goods/services business, have reached a higher risk of:

Bankruptcy

Fraudulent Transactions

High lots 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 illegal in some jurisdictions.

Merchant Credit history - Some providers will not accept merchants with poor or no credit account.

Due to the high risk classification, most banks won't provide business relationship to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Therefore some vacation providers offer their services to both general merchants and precarious merchants.

Merchant account providers that are developed to service riskly merchants will broadly speaking provide the next step of fraud protection, you will find that decrease expense of 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 purchasing a high risk merchant account, there many factors to be able to take note. Rates will be one very sound factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. Then you will need to think about fraud protection, customer service and reporting available you r as a merchant.