Online Merchant Account : 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 Online Merchant Account 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.
There are two types of merchant accounts. First is the normal account, where the Online Merchant Account can directly access the card and ensure that it is a legitimate customer, thereby the risk involved is minimal. The second type of Online Merchant Account 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.
Online Merchant Account : Things to Note and Avoid
Merchant accounts for adult sites are only provided by those people who are willing to accommodate risky and controversial businesses. Normally most merchant-account providers refrain from associating with such risky trade. Even if they do, the rates offered are much higher compared to normal merchant accounts. Such is the case with credit card processing for adult sites as well. There are cases where they charge up to 20% more.
The payments to a merchant-account for adults can come mainly in two ways that is the monthly membership fee which is charged for continued service as well as one-off fees. These payments have to be credited to an account maintained solely for this purpose.
These offshore concerns make arrangements for receiving periodic payments as well as one-off cash receipts. Few hurdles are faced with such an arrangement as these service providers are prompt and orderly in their payments. They are equipped with state of the art software for detecting fraud and duplication.
The Adult sites business can be a money spinner therefore there is no real dearth of risk takers willing to provide merchant accounts for adult site business. Some adult sites rake in several millions year and thus will have numerous takers.