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 pharmacy merchant services merchants the most popular, so in most cases cost effective, source is from another party merchant account organization.
A high risk processing account is required by businesses that, when compared along with ‘traditional’ goods/services business, are at a higher risk of:
High lots 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 illegitimate in some jurisdictions.
Merchant Credit standing – Some providers won’t accept merchants with poor or no credit details.
Due towards the high risk classification, most banks will not provide a forex account to those who are in a high-risk industry (such as adult entertainment, replica goods, pharmacy etc). Therefore 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 most likely provide the next step of fraud protection, you will notice that decrease charge their merchants incur. However, in order to cover the advanced of risk, rates for virtually any high risk merchant account will be higher than their lower risk counter-parts.
When looking for high risk merchant account, there are a number of factors if you want to take under consideration. Rates will be one of the biggest factors, like includes fees for refunds and charge-backs, along with transaction fees, the discount rate and continuing fees. You will need to think about fraud protection, customer service and reporting available to you as a merchant.