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 merchants the most popular, so in most cases cost effective, source is from a third party merchant account offerer.

A high risk merchant account for online pharmacy account is required by businesses that, when compared together 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 as a high risk are:

Merchants Location – Some merchant account providers will not accept merchants from certain countries.

The Product/Service the merchant sells is prohibited in some jurisdictions.

Merchant Credit file – Some providers won’t accept merchants with poor or no credit track record.

Due towards the high risk classification, most banks will not provide a merchant account to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). As such some vacation providers offer their services to both general merchants and heavy risk merchants.

Merchant account providers that happen to be developed to service high-risk merchants will most likely provide the next step of fraud protection, you will find that decrease charge their merchants incur. However, in order to cover the advanced level of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are a number of factors to be able to take into mind. Rates will be one very sound factors, and this 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 as a merchant.