Who Needs a High Risk Merchant Account?

Merchant accounts are needed in order for a business to accept credit card payments. As a offshore merchant account for pharmacy, 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 provider.

A high risk merchant account is required by businesses that, when compared to a ‘traditional’ goods/services business, are 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 may be categorized as a high risk are:

Merchants Location – Some merchant account providers won’t accept merchants from certain countries.

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

Merchant Credit standing – Some providers won’t accept merchants with poor or no credit account.

Due towards the high risk classification, most banks will not provide an account provider to those invoved with a high-risk 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 riskly merchants will probably provide a higher level of fraud protection, so that you can decrease expense of their merchants incur. However, in order to cover the more fantastic range of risk, rates high risk merchant account will definitely be higher than their lower risk counter-parts.

When looking for a high risk merchant account, there are several factors that you should take under consideration. 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 will need to think about fraud protection, customer service and reporting available to you as a merchant.

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