Merchant account is a contract or an agreement between a business and a financial institution or a bank. This agreement ensures that payments for services and products of a business are accepted by the bank. These banks ensure that a company or merchant can accept payment from international clients for the products they deliver. These merchant accounts form a crucial part of any ecommerce business.
Types of merchant accounts:
Merchant accounts are of two types. First type of merchant account is normal account where in the merchant has the direct access to the card. Risk involved with this type of account is minimal as merchant ensure that account is used by a legitimate customer. In the second kind of merchant account, it is not possible to test the customer visually. These types of accounts include online tobacco merchants, online gambling merchants, adult entertainment merchants; pre paid calling merchants, VOIP merchants, replica merchants, or other transaction that takes place without physical presence of customers. With these type of business fraud activity is possible and hence these types of accounts are classified as high risk merchant accounts. High charge backs is the risk presented to banks in question by these merchant accounts. Many researches proved that these transactions of high risk merchant accounts are more liable to fraudulent transactions.
Many banks are reluctant to handle these high risk processing accounts due to the risk factors. The banks may revise the merchant’s financial criteria anytime and thus their business may be affected adversely by the payment process. Use this www.highrisksolutions.com for your comfort to enter in the site.
Today, many first- rate banks are willing to set up high risk merchant accounts. these acquiring banks considers the technique used by the business firms to draw customers, different kind of customers involved with the firms and the expected turn over. These banks ensure the merchants a heterogeneous payment process by encouraging them to open multiple accounts. If a merchant encounters an issue with one account he can continue the business through other active accounts.