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A high threat merchant account is needed by services that, when compared to a ‘ standard’ goods/services organisation, are at a greater threat of:

Insolvency

Deceptive Deals

High volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant might be categorized as a high risk are:

Merchants Area – Some merchant account service providers will decline merchants from certain nations.

The Product/Service the merchant offers is illegal in some jurisdictions.

Merchant Credit History – Some companies will decline merchants with poor or no credit report.

Due to the high threat category, a lot of banks will not supply a merchant account to those in a high risk market (such as adult home entertainment, replica products, pharmacy etc). As such some 3rd party companies provide their services to both basic merchants and high threat merchants.

Merchant account suppliers that have actually been established to service high risk merchants will typically supply a greater level of scams protection, so as to decrease the cost their merchants incur. Nevertheless, in order to cover the higher level of danger, rates for a high threat merchant account will constantly be higher than their lower danger counter-parts.

When looking for

If you own a business of some sort you may fall into what charge card business think about something besides a regular low threat account. Alternative companies have a more difficult time of getting approved for merchant accounts. This is typically due to the potential of charge backs happening. , there are a variety of elements that you need to take into account. Rates will be among the most important aspects, and this includes fees for refunds and charge-backs, together with transaction fees, the discount rate and ongoing costs. Then you will need to think about fraud defense, customer care and reporting readily available to you as a merchant.