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, and in 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 with ‘traditional’ goods/services business, are at 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 to be 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 standing – Some providers will not accept merchants with poor or no credit foundation.

Due to the high risk classification, most banks will not provide your free account to those involved with a perilous industry (such as adult entertainment, replica goods, pharmacy etc). For this reason some other providers offer their services to both general merchants and high-risk merchants.

Merchant account providers which developed to service precarious merchants will most likely provide a higher level of fraud protection, you will notice that decrease the cost their merchants incur. However, in order to cover the level up of risk, rates for virtually any high risk merchant account will be higher than their lower risk counter-parts.

When hunting for a high risk merchant account providers for online pharmacy account, there exist several factors if you want to take into account. Rates will be one of the most important factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You must need to adopt fraud protection, customer service and reporting available you as a merchant.