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, with the most cases cost effective, source is from a third party merchant account organization.
A high risk merchant card account is required by businesses that, when compared together with ‘traditional’ goods/services business, have reached a higher risk of:
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 illegitimate in some jurisdictions.
Merchant Credit history – Some providers will not accept merchants with poor or no credit account.
Due to the high risk classification, most banks won’t provide your free account to people in a perilous industry (such as adult entertainment, replica goods, pharmacy etc). For this reason some other providers offer their services to both general merchants and precarious merchants.
Merchant account providers of developed to service high risk merchants will probably provide the next stage of fraud protection, with a purpose to decrease charge their merchants incur. However, in order to cover the advanced of risk, rates for virtually any high risk merchant account will always be higher than their lower risk counter-parts.
When hoping for a high risk merchant account, there many factors to be take into account. Rates will be one of the most important factors, refund policy includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You must need to adopt fraud protection, customer service and reporting available to you as a merchant.