Is a High Risk Merchant Account for You?

Some merchants are not certain if their industry or business history classifies them as a high risk merchant. Perhaps they run a business within a sector that is traditionally known as high risk, but they have a very positive credit history and a low number of chargebacks. In situations such as this, it may be up to the high risk processor, but more than likely the business will still need to pursue a high risk merchant account. Other accounts that are typically considered high risk include an escort service merchant account, online pharmacy merchant account and replicas merchant account. 

If you do not have one of the aforementioned businesses, but have been turned down by a traditional source of merchant accounts, you may be the ideal candidate for a high risk processor and high risk merchant account. How will you know if you fall into this category? 

·        Your business experiences a higher-than-typical rate of chargebacks. Chargebacks are transactions that end up taking money out of the high risk merchant account rather than depositing it. These detrimental occurrences happen most often due to identity theft and credit card fraud, but they can also happen when the customer accidentally orders duplicate items or otherwise cancels the transaction. An escort service merchant account is an example of a type of account that has to deal with a large number of chargebacks.

·        You perform a high volume of business. High volume merchants, such as those who use an online pharmacy merchant account, are considered high risk because they have so many opportunities every day for fraud and other negative transactions. A high risk processor that offers accounts to high volume merchants more than likely has instituted safeguards against customers who use stolen credit cards to buy duplicates of a single item with the intention of reselling them—these measures may include verifying the address of the purchaser prior to sending out the merchandise.

·        Most of your credit card transactions are card-not-present transactions. If you are merchant who performs mostly online or other types of card-not-present transactions, then you will more than likely be considered a high risk merchant. A replicas merchant account is a typical example of this type of merchant. Since your customers are not directly in front of you, where you can verify their identities, there is a greater risk for credit card fraud and identity theft. Measures such as using the AVS and CVS systems help to alleviate some of the risks associated with card-not-present transactions.

·        You  are a new merchant with a short credit history. A short credit history does not mean a negative credit history, it just means that you have not been in business long enough to have established a basis for traditional merchant account companies to make decisions about the amount of risk you may bring to them. New high risk merchant will need to work hard to build a positive credit history, which is done by staying current with all debtors and paying all financial obligations in a timely manner. 

Whether you need a replicas merchant account, an escort service merchant account or an online pharmacy merchant account, it is beneficial for you to research all of your options until you find a high risk processor that meets your needs.

High Risk Processor specializes in all types of High Risk Merchant Accounts,including High Volume Merchant Accounts and Offshore Merchant Accounts. High Risk Merchant Accounts are targeted towards industries such as mail order, telephone orders, adult entertainment industry, direct marketing companies, dating, online escort services, outcall services, travel, telecom, timeshares businesses, herbal supplements and diet companies, subscription services, membership services and member clubs, ticket sales, MLM merchant accounts, multi-level marketing businesses, bail bonds, pawn shops, water filtration systems, collection agencies, auto rental companies, rare coin and collectible shops, computers, custom design products, software sales and computer service, detective services, door to door product sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high-end concert sales, high volume merchant accounts, home based businesses, telecommuting businesses, fortune tellers, infomercial merchant accounts, insurance and investment products, custom jewelry sales, multi level marketing and MLM organizations, phone sales, internet merchants, seminars, educational institutions, sports collectibles, used auto sales, water purifier sales, weight loss centers, vitamin and herbal supplement merchants, international retailers, companies facing high chargebacks, and more.