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 for 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 offerer.

A high risk merchant credit card is required by businesses that, when compared to 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 as 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 record – Some providers won’t accept merchants with poor or no credit details.

Due to the high risk classification, most banks won’t provide a forex account to those who are in a danger industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vendor providers offer their services to both general merchants and high-risk merchants.

Merchant account providers that happen to be developed to service riskly merchants will generally provide the next stage of fraud protection, so as to decrease charge 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 a high risk merchant account, there are several factors take note. Rates will be one very sound factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You must need to contemplate fraud protection, customer service and reporting available to you as a merchant.