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 providers for online pharmacy account; a bank, or a third party provider. For online merchants the most popular, with the most cases cost effective, source is from a 3rd party merchant account provider.

A high risk processing account is required by businesses that, when compared into a ‘traditional’ goods/services business, have a a higher risk of:

Bankruptcy

Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized like 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 history – Some providers will not accept merchants with poor or no credit history.

Due towards the high risk classification, most banks won’t provide a forex account to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some third party providers offer their services to both general merchants and precarious merchants.

Merchant account providers that have been developed to service high-risk merchants will broadly speaking provide the next stage of fraud protection, so that you can decrease the cost their merchants incur. However, in order to cover the advanced level 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 several factors that you should take into consideration. Rates will be one of the most important factors, like includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You must need to think about fraud protection, customer service and reporting available you as a merchant.