High Risk Merchant Account And What You Should Know

If you have recently started the planning of an online gaming site, pharmacy, adult site, or pharmacy, you may have been told that you need a high risk merchant account. The reason for this is that many of these businesses experiences a high number of chargebacks and even have a higher risk of fraud. However, don’t let this stop you from beginning your new business, as it is simply one step in your start up.

If you have been turned down for a regular account, you may have to apply for a High Risk Merchant Account. The unfortunate aspect of this is that you will probably be charged a start up fee, usually much higher than a regular account would charge. Of course, you will also be charged a higher credit card processing rate, as well. This is simply due to the fact that your new business is at a higher risk for those chargebacks.

Because of the high fees charged by banks on these higher risk type of businesses, business owners may wish to consider going with a third-party provider. As they are associated with several banks, they may be able to get you lower fees and processing rates. Generally, you should expect to pay a fee of as much as $5000 or more to get started and processing fees of as much as $.75 per transaction.

Be sure to set up a system to reduce how many chargebacks your account receives. You can do this by making yourself available to your customers and always providing them with great customer service. Providing a telephone number for them to contact you or an email address and getting back to them quickly is the best way to reduce chargebacks on your account.

A high risk merchant account may not be what you expected when you started planning your new business, but it may be necessary in order for you to get your business up and running. The best thing you can do is research the various companies that will provide you with an account and do a comparison of the services and fees they can provide to you.