High Risk Merchant Account
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A high risk merchant account is required for certain industries as they carry a higher risk of fraud and charge backs. While most online businesses can obtain a merchant account with little difficulty, those that are classified as high risk can have considerable difficulty in opening a merchant account, particularly through domestic providers.
Many domestic banks consider a business to be a high risk based on the potential for:
- Excessive chargeback's and returns
- Possible legal violations for selling banned services or products
- Financial liability that the bank or processor may incur whilst processing for the merchant
- Bad publicity towards the bank for accepting certain types of businesses
Typical high risk merchant account type businesses include:
- Auctions
- Dating
- Travel
- Telemarketing
- Replica products
- E-wallet/E-cash
- ISP & hosting services
- Mortgage Brokers
- Check cashing and small loan services
- Pharmaceutical, herbal or weight loss products
As a result of getting a high risk classification, many merchants will obtain an offshore high risk merchant account, since they cannot obtain a merchant account from a bank onshore for credit card processing. At intabill we accept applications from all legal high risk business types, opening high risk merchant accounts through our partnerships with a network of more than 10 banks spread worldwide. This allows a merchant to increase their business revenues significantly, since we can offer an internet merchant account with multi currency options and unlimited markets to accept credit card processing.
intabill also features a security team that specializes in monitoring transactions through high risk merchant accounts, helping to greatly minimize the high chargeback levels often associated with high risk processing.
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