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, plus most cases cost effective, source is from an additional party merchant account doctor.

A high risk merchant card account is required by businesses that, when compared with ‘traditional’ goods/services business, have a a higher risk of:

Bankruptcy

Fraudulent Transactions

High amount of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant account for pharmacy 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 against the law in some jurisdictions.

Merchant Credit record – Some providers won’t accept merchants with poor or no credit history.

Due towards the high risk classification, most banks will not provide your free account to those in a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vendor providers offer their services to both general merchants and heavy chance merchants.

Merchant account providers that happen to be developed to service high-risk merchants will most likely provide to the next stage of fraud protection, you will notice that decrease the price of their merchants incur. However, in order to cover the level up of risk, rates for a high risk merchant account will be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there many factors to be able to take under consideration. Rates will be one very sound factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You will need to look into fraud protection, customer service and reporting available a person as a merchant.