Who Needs a High Risk Merchant Account?

Merchant accounts are required in order for a business to accept credit card payments. As a merchant account for online pharmacy, there are two places you can obtain a merchant account; a bank, or a third party provider. For online merchants the most popular, in addition as in most cases cost effective, source is from a third party merchant account organization.

A high risk credit card merchant account is required by businesses that, when compared along with ‘traditional’ goods/services business, have reached 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 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 prohibited in some jurisdictions.

Merchant Credit standing – Some providers will not accept merchants with poor or no credit history.

Due towards high risk classification, most banks won’t provide a merchant account to those invoved with a high risk industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some outside providers offer their services to both general merchants and high risk merchants.

Merchant account providers that have been developed to service high-risk merchants will normally provide the next step of fraud protection, so that you can decrease expense of their merchants incur. However, in order to cover the level up of risk, rates for virtually any high risk merchant account will definitely be higher than their lower risk counter-parts.

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