high risk merchant accounts
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What is a Merchant Account high risk?
Some companies by their nature have higher chargeback rates after normal. Sometimes this is because the product or service offered by the merchant is in high demand, but also be at a high price (eg, high-end electronics, jewelry, etc..) Sometimes it's because the service of causes customers to be misled intentionally or not (for example, in multi-level marketing). Whatever the root cause of these businesses usually find it difficult, if not impossible, to establish a merchant account. The companies considered high risk vary from one provider merchant account provider. However, there are some companies and industries that are constantly considered high risk. This list includes: * Adult * Entertainment Books * New * Adult Adult Shops Adult Video Sales * * Advanced Check Services * Child Pornography Charge Collection Agencies * * * Repair Services Credit Dating / Escort marketing Diet * / Establishments Exotic Dance Programs * * Multi-level marketing * Pharmacies (Card not present / Internet) * Sex * pornography * Telemarketing * Business Meeting * Club Timeshare Travel / Travel Guides Vacation Packages * For these companies to accept cards credit often have to resort to high risk merchant account providers. These companies are usually always the coast and charge higher rates then traditional merchant account providers. The rates may be as high as 20% of sales, and some may charge set fee of $ 1,000 or higher. The reason why these rates and fees are so high is the high-risk merchant account provider has to ensure that enough money to cover the cost of the high number of returned charges that you will receive.
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