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

Insolvency

Deceptive Deals

High volume of sales

High rate of refunds

High rate of charge-backs

Other factors a merchant may be categorized as a high danger are:

Merchants Location – Some merchant account companies will not accept merchants from particular nations.

The Product/Service the merchant sells is unlawful in some jurisdictions.

Merchant Credit Rating – Some service providers will decline merchants with bad or no credit history.

Due to the high danger classification, most banks will not supply a merchant account to those in a high danger industry (such as adult home entertainment, replica goods, pharmacy etc). As such some 3rd party service providers offer their services to both basic merchants and high risk merchants.

If you own a business of some sort you may fall under what credit card business consider something besides a typical low risk account. Alternative services have a harder time of getting approved for merchant accounts. This is typically due to the potential of charge backs occurring. that have been established to service high danger merchants will generally provide a higher level of scams protection, so as to reduce the cost their merchants sustain. However, in order to cover the higher level of danger, rates for a high risk merchant account will constantly be higher than their lower threat counter-parts.

When looking for a high risk merchant account, there are a number of elements that you should take into account. Rates will be one of the most important aspects, and this includes costs for refunds and charge-backs, in addition to deal costs, the discount rate and ongoing fees. Then you will require to think about fraud security, client service and reporting readily available to you as a merchant.