Who Needs a High Risk Merchant Account?

merchant account providers for online pharmacy accounts are needed 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, in addition as in most cases cost effective, source is from another party merchant account doctor.

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

Bankruptcy

Fraudulent Transactions

High lots of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized being a high risk are:

Merchants Location – Some merchant account providers won’t accept merchants from certain countries.

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

Merchant Credit record – Some providers will not accept merchants with poor or no credit details.

Due towards high risk classification, most banks won’t provide a merchant account to those involved with a perilous industry (such as adult entertainment, replica goods, pharmacy etc). As such some other providers offer their services to both general merchants and high-risk merchants.

Merchant account providers that are developed to service precarious merchants will generally provide the next step of fraud protection, so as to decrease charge their merchants incur. However, in order to cover the advanced of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.

When purchasing a high risk merchant account, there are a number of factors that you should take under consideration. Rates will be one of the most basic factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. Require need to think about fraud protection, customer service and reporting available a person as a merchant.

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