Merchant 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, plus most cases cost effective, source is from a third party merchant account offerer.

A high risk merchant account is required by businesses that, when compared to a ‘traditional’ goods/services business, close to 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 will not accept merchants from certain countries.

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

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

Due for the high risk classification, most banks will not provide a merchant account providers for online pharmacy account to those invoved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some third party providers offer their services to both general merchants and high-risk merchants.

Merchant account providers which developed to service perilous merchants will generally provide the next step of fraud protection, so that you can decrease the price of their merchants incur. However, in order to cover the more fantastic range of risk, rates with a high risk merchant account will continually be higher than their lower risk counter-parts.

When hunting for a high risk merchant account, there are several factors if you want to take into consideration. Rates will be one of the most important factors, like 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 for as a merchant.