Merchant accounts are required in order for a business to accept credit card payments. As a merchant account for online pharmacy, there are two places you can obtain a merchant 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 one third party merchant account provider.
A high risk merchant card account is required by businesses that, when compared together with ‘traditional’ goods/services business, close to a higher risk of:
High amount 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 won’t accept merchants from certain countries.
The Product/Service the merchant sells is against the law in some jurisdictions.
Merchant Credit history – Some providers won’t accept merchants with poor or no credit details.
Due towards 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 other providers offer their services to both general merchants and high-risk merchants.
Merchant account providers of developed to service high risk merchants will normally provide to the next stage of fraud protection, so as to decrease expense of their merchants incur. However, in order to cover the level up of risk, rates with a high risk merchant account will possibly be higher than their lower risk counter-parts.
When purchasing a high risk merchant account, there exist several factors take note. Rates will be one of the biggest factors, this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and recurring fees. You will need to contemplate fraud protection, customer service and reporting available a person as a merchant.