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 pharmacy merchant services merchants the most popular, in addition as in most cases cost effective, source is from an additional party merchant account offerer.

A high risk processing account is required by businesses that, when compared together with ‘traditional’ goods/services business, are at a higher risk of:

Bankruptcy

Fraudulent Transactions

High quantity 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 will not accept merchants from certain countries.

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

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

Due towards 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). Consequently some vendor providers offer their services to both general merchants and precarious merchants.

Merchant account providers that happen to be developed to service precarious merchants will generally provide the next stage of fraud protection, so as to decrease expense of their merchants incur. However, in order to cover the higher level of risk, rates high risk merchant account will be higher than their lower risk counter-parts.

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