High Level Overview: what’s a high risk merchant accounts?

A high risk merchant accounts could pertain to any sort of business which accepts payments, often times charge cards, with an unusually higher possibility of credit card fraud. Credit card fraud isn’t just an issue for business owners but also for the credit card processors. It’s a massive problem, with both the time and gain dropped, for the merchant account providers who need to investigate the fraud and the business owners who might be at risk of fraud.

There are a lot of reasons why a merchant account supplier would consider merchant services account as a high risk merchant accounts. Since the credit card holders are unable to physically sign a receipt for an ecommerce sale, many banks and credit card companies will really wait or refuse to approve high risk merchant accounts requests made by companies that fall under the label of”high risk” designation. Sometimes, this sort of business or industry is well known for having a high example of chargebacks or fraud or perhaps the company principals have insufficient or poor credit.

Bearing this in mind, obtaining a high risk offshore merchant account for pharmacy can at times be very hard, time consuming, or both; however, there are experts in the area of high risk merchant accounts that understand the best options in terms of getting your merchant account approved, sometimes in as few as two days. There are a number of companies that routinely fall under the label of the”high risk” designation for merchant accounts such as, but not limited to, adult business, escort services, gaming sites, travel and timeshare websites, pre-paid/contract, tobacco/e-cigs, firearms/guns/ammo, MLM, remote PC tech support, retailers on the TMF listing, and a lot more.

Merchant accounts can be designated as being high risk for several diverse reasons. Because of this, the merchant account providers have the capacity to tag your business as high risk through the merchant accounts underwriting procedure. Virtually all online gaming sites and lots of adult businesses fall under this very broad umbrella. If an online retailer is involved in business that doesn’t involve face-to-face transactions, the retailer is most likely going to be considered higher risk, but not necessarily large risk or difficult to place, to the banks contemplating their merchant accounts request.

A vast majority of businesses looking to accept credit cards won’t fall into the high risk merchant accounts category and won’t require this sort of account because they provide what are thought of as traditional products and services nonetheless, there are particular niches that are greater risk in nature, and accepting credit cards from clients can pose a problem. Merchant services suppliers understand that greater risk sometimes requires higher price to cover increased fraud and risk obligations. Consequently, they charge higher fees or reservations to process transactions for these kinds of customers. A provider that’s knowledgeable about the high risk industry will have the ability to better underwrite for these risks and supply retailers with more competitive prices and terms than those who typically handle traditional merchant accounts.