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FAQs regarding high risk merchant accounts
Following are a few frequently asked
questions by those who want to accept
online payments made by credit cards:
-
What exactly is a high
risk merchant account?
A high-risk merchant account is simply a
special kind of account which has a high
risk of encountering fraud. This occurs
since traders who use these kinds of
accounts to run their business do not
have physical presence in a particular
state or country.
In most cases, people who own a high
risk merchant account run their trade
over the internet. As there are a number
of hackers online, the traders who have
this type of account are not secure from
those who could get into their web sites
without making payments. Hence, the
merchant account providers who deal with
such clients usually charge higher
rates. This in turn could hinder the
trade’s growth. A few examples of these
types of accounts are pharmaceutical
merchants, online casinos and adult
websites.
-
How to get a high risk
merchant account?
The procedure for obtaining high risk
merchant accounts could be lengthy and
frustrating because of huge amounts of
paper work that one needs go-through.
Because the nature of this account falls
in the “high risk” category, the
merchant account providers always give a
second thought before they grant the
requests for such applications. However,
there are a few organisations which help
in simplifying the complicated process
for applying for high risk merchant
accounts. These organisations help a
merchant establish merchant account with
leading credit card firms and also
lighten the load of acquiring these
merchant accounts. Apart from this,
these organisations also help in setting
up payment processes which are
integrated to a trader’s account.
-
Does one need to pay huge
amounts of money in order to get this
type of account?
Yes. This is unfortunate but true. This
is because of the “high risk” factor and
the providers too charge high fees.
However, there are a few providers who
do not require a trader to shell out for
the expensive application fees, but be
careful as they could charge high rates
for maintaining them.
-
How does a merchant get
paid?
All the transactions will firstly go
through merchant account providers.
These providers will then settle
payments that a trader has received from
the credit card firms. The time taken to
receive the funds will vary among the
different providers. Generally, this
process usually takes 3 days to a week.
-
What is the time taken to
get a high risk merchant account?
The time taken to get a high risk
merchant account mainly depends on the
details given to the merchant account
providers. The application could be
processed in a day or it could even take
a month. However, waiting for long time
periods is not preferred by most of the
merchants. Hence, it is necessary to
take precaution that sufficient and
complete information in provided in the
application for a high risk merchant
account. |
