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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, so in most cases cost effective, source is from one third party merchant account offerer.

A high risk credit card merchant account is required by businesses that, when compared into a ‘traditional’ goods/services business, was at a higher risk of:

Bankruptcy

Fraudulent Transactions

High amount of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant account providers for online pharmacy may be categorized being 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 file – Some providers will not accept merchants with poor or no credit details.

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

Merchant account providers which developed to service perilous merchants will generally provide a higher level of fraud protection, you will notice that decrease expense of their merchants incur. However, in order to cover the advanced of risk, rates high risk merchant account will always be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are many factors to be able to take into account. Rates will be one very sound factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You’ll need to adopt fraud protection, customer service and reporting available you r as a merchant.