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 an additional party merchant account organization.
A high risk merchant card account is required by businesses that, when compared together with ‘traditional’ goods/services business, was at a higher risk of:
High volume of sales
High rate of refunds
High rate of charge-backs
Other reasons a merchant may be categorized to be a high risk are:
Merchants Location – Some merchant account providers won’t accept merchants from certain countries.
The Product/Service the merchant sells is illegitimate in some jurisdictions.
Merchant Credit record – Some providers will not accept merchants with poor or no credit details.
Due into the high risk classification, most banks won’t provide your free account to those invoved with a high risk industry (such as adult entertainment, replica goods, pharmacy etc). As such some other providers offer their services to both general merchants and precarious merchants.
Merchant account providers which developed to service precarious merchants will broadly speaking provide to the next stage of fraud protection, so as to decrease charge their merchants incur. However, in order to cover the more fantastic range of risk, rates for virtually any high risk merchant account will always be higher than their lower risk counter-parts.
When looking for a high risk merchant account, there are a number of factors to be able to take into account. Rates will be one of the most basic factors, as well as includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You’ll need to adopt fraud protection, customer service and reporting available for as a merchant account for online pharmacy.