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, plus most cases cost effective, source is from a 3rd party merchant account organization.

A high risk merchant account providers for online pharmacy credit card is required by businesses that, when compared together with ‘traditional’ goods/services business, was at a higher risk of:

Bankruptcy

Fraudulent Transactions

High sum of sales

High rate of refunds

High rate of charge-backs

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

Due for the high risk classification, most banks will not provide an account provider to those involved with a high-risk 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 happen to be developed to service perilous merchants will probably provide to the next stage of fraud protection, so that you can decrease the cost their merchants incur. However, in order to cover the higher level of risk, rates high risk merchant account will possibly be higher than their lower risk counter-parts.

When looking for a high risk merchant account, there are several factors to be able to take into account. Rates will be one of the most basic factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You’ll need to take into account fraud protection, customer service and reporting available to you as a merchant.