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, plus most cases cost effective, source is from another party merchant account doctor.
A high risk processing account is required by businesses that, when compared together with ‘traditional’ goods/services business, have a a higher risk of:
High quantity of sales
High rate of refunds
High rate of charge-backs
Other reasons a merchant may be categorized for a high risk are:
Merchants Location – Some merchant account providers will not accept merchants from certain countries.
The Product/Service the merchant sells is unlawful in some jurisdictions.
Merchant Credit standing – Some providers won’t accept merchants with poor or no credit foundation.
Due to the high risk classification, most banks won’t provide your free account to those involved with a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some vendor providers offer their services to both general merchants and heavy risk merchants.
Merchant account providers that are developed to service high-risk merchants will probably provide the next step of fraud protection, with a purpose to decrease charge their merchants incur. However, in order to cover the more fantastic range of risk, rates high risk merchant account will be higher than their lower risk counter-parts.
When hoping for a high risk merchant account, there are several factors to be able to take into consideration. 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 continuing fees. Then you will need to adopt fraud protection, customer service and reporting available you r as a merchant.