Credit Card Dispute

Credit Card : Best Reviews of 2018

Merchant account is a contract between a business and a bank or a financial institution. This contract ensures that the bank accepts payments for the products or services on behalf of the business. These Credit Card acquiring banks ensures that a merchant or company can accept payment from international customers for the products or services they deliver. Thus merchant accounts form a vital part of any E-commerce business.

best high risk merchant account

There are two types of merchant accounts. First is the normal account, where the Credit Card can directly access the card and ensure that it is a legitimate customer, thereby the risk involved is minimal. The second type of Credit Card involves the accounts where it is not possible to visually testify the customer. These types of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, online gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, or any transaction that takes place with the customer physically not present. Thereby, the possibility of fraud activity is much greater with this type of business which results in classifying these types of accounts as “high risk” ones. Naturally, these high risk merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches that these high risk processing transactions are more susceptible to fraudulent transactions.

authorize net aim merchant account

Credit Card : Things to Note and Avoid

amazon merchant account login

In layman's terms, a high risk merchant account is a type of payment processing method that has been specially designed for business enterprises that are regarded as high risk by banks. Examples include software venders, cosmetic surgeons and investment brokers amongst others. As such, these businesses have to pay more for merchant services compared to other businesses using similar services.

The flip side of a high risk merchant account is that it functions increases the operating costs of a business thus reducing their bottom line. Having seen this as an untapped market, there are companies that have dedicated their services to working hand in hand with risky merchants so as to provide them with inexpensive rates. This has enabled a number of businesses that once found the market unfavorable due to the high fees charged by banks to find a level playing field. There are hundreds of businesses that are today labeled as risky business as a result of the work they are involved in.

Payments made to high risk merchant accounts are regarded to bear an enhanced possibility of fraud. For instance, a customer could be utilizing a stolen credit or debit card to buy goods and services. This in turn raises the risks borne by the bank or payment processor. Moreover, online businesses, i.e. e-commerce are also categorized as high risk businesses as they actually do not see the credit card. All orders and payments and made and received online which can raise chances of fraudulent activities considerably.

amazon merchant account login

TheGrandFoundation.com Specializes in Reviewing Merchant Accounts

Credit Card Processing Excel Template