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 for pharmacy account; a bank, or a third party provider. For online merchants the most popular, in addition as in most cases cost effective, source is from a third party merchant account offerer.
A high risk merchant 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 against the law in some jurisdictions.
Merchant Credit file – Some providers won’t accept merchants with poor or no credit history.
Due into the high risk classification, most banks won’t provide business relationship to people in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). Because of this some outside providers offer their services to both general merchants and precarious merchants.
Merchant account providers that happen to be developed to service perilous merchants will most likely provide to the next stage of fraud protection, so as to decrease the cost their merchants incur. However, in order to cover the advanced level of risk, rates with a high risk merchant account will definitely be higher than their lower risk counter-parts.
When looking for high risk merchant account, there are many factors that you should take into mind. 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 recurring fees. Require need to adopt fraud protection, customer service and reporting available to you as a merchant.