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, plus most cases cost effective, source is from another party merchant account doctor.
A high risk merchant account is required by businesses that, when compared along with 'traditional' goods/services business, was at a higher risk of:
High volume of sales
High rate of refunds
High rate of charge-backs
Other reasons a merchant may be categorized like a high risk are:
Merchants Location - Some merchant account providers won't accept merchants from certain countries.
The Product/Service the merchant sells is unlawful in some jurisdictions.
Merchant Credit file - Some providers won't accept merchants with poor or no credit history.
Due towards high risk classification, most banks won't provide an account provider to people in a riskly industry (such as adult entertainment, replica goods, pharmacy etc). For this reason some third party providers offer their services to both general merchants and heavy chance merchants.
Merchant account providers of developed to service perilous merchants will broadly speaking provide the next stage of fraud protection, so as to decrease the price of their merchants incur. However, in order to cover the advanced level of risk, rates for a high risk merchant account will always be higher than their lower risk counter-parts.
When looking for high risk merchant account, there exist several factors take into mind. Rates will be one of the biggest factors, and this includes fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. You will need to adopt fraud protection, customer service and reporting available for as a merchant.