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 pharmacy merchant services merchants the most popular, plus most cases cost effective, source is from another party merchant account doctor.

A high risk merchant credit card is required by businesses that, when compared into a ‘traditional’ goods/services business, have reached 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 like 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 won’t accept merchants with poor or no credit details.

Due to the high risk classification, most banks will not provide an account provider to those who are in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Consequently some vendor providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers that have been developed to service riskly merchants will probably provide a higher level of fraud protection, so that you can decrease the cost their merchants incur. However, in order to cover the higher level of risk, rates for just about any high risk merchant account will definitely be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there exist several factors to be able to take under consideration. 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 continuing fees. You will need to look into fraud protection, customer service and reporting available a person as a merchant.

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