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, with the most cases cost effective, source is from a third party merchant account issuer.

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

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

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

Merchant Credit file – Some providers will not accept merchants with poor or no credit foundation.

Due to the high risk classification, most banks won’t provide your free account to those in a danger industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some vacation providers offer their services to both general merchants and high risk merchant account for online pharmacy risk merchants.

Merchant account providers of developed to service precarious merchants will broadly speaking provide the next step of fraud protection, so as to decrease charge their merchants incur. However, in order to cover the advanced of risk, rates for just about any high risk merchant account will definitely be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there exist several factors to be able to take under consideration. Rates will be one of the most basic factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You’ll need to look into fraud protection, customer service and reporting available for as a merchant.