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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, and in most cases cost effective, source is from another party merchant account organization.

A high risk merchant card account is required by businesses that, when compared into a 'traditional' goods/services business, are at 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 for a high risk are:

Merchants Location - Some merchant account providers won't accept merchants from certain countries.

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

merchant account providers for online pharmacy Credit standing - Some providers won't accept merchants with poor or no credit history.

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

Merchant account providers that have been developed to service perilous merchants will normally provide the next step of fraud protection, you will notice that decrease might their merchants incur. However, in order to cover the higher level of risk, rates high risk merchant account will continually be higher than their lower risk counter-parts.

When looking for high risk merchant account, there many factors if you want to take into mind. 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 recurring fees. You must need to take into account fraud protection, customer service and reporting available you r as a merchant.