What is a HIGH RISK merchant account?

Merchant account is a kind of bank credibility which permits businesses to allow payments by credit or debit cards. Merchant account serves as agreement between merchant bank, customer, and payment processor in settlement of debit or credit card transactions.

Nowadays, most of the transactions of credit cards are sent to merchant dealing banks for deposit, capture, and authorization. Several steps exist for credit card presentation to the device.  In all just swiping through a credit card reader, a computer chip could be read. The either way is by manually entering credit card into a terminal.

It would be better to swipe your card since interest prices would be lower. It also avoids cases of theft.

Credit Card Reader/Terminal: 

Credit card reader is an electronic equipment which permits a dealer to swipe the credit card to make a transaction.  A Credit card reader should be power pointed into the power supply which is also connected to a telephone. During the process of processing the credit cards, it contacts the network to check authorization of credit cards. The most well-known credit card readers consists of one memory card, power supply, magnetic stripe terminal, printer, keypad, and modem.

ARU or Automated Response Unit:  

This is also called as deposit, capture, and voice authorization. ARU permits manual keying and successive credit card approval over telephone or mobile. Marketing of merchant accounts to merchants are done in two ways: directly by sponsoring or processing bank or by one of the approved bank agent or by direct registration with MasterCard and Visa.

Merchant account comprises of multiple fees which are periodic and others which change on percentage basis. Merchant account supplier set some fees but most of the percentage and per-item fees are sent through merchant account supplier to bank that issued credit cards according to interchange fees that are imposed by MasterCard and Visa.

After a merchant accepts a credit card from a consumer a percentage price would be charged from them. This is indeed the least rate which a merchant would incur while accepting credit card.

Merchant would also be charged a mid-qualified rate for accepting credit card that doesn’t meet the criteria for least rate. Non-qualified price would be charged from a merchant if they accept credit card.

Merchant would be charged on other fees like:  

Authorization fee: This is also called as ‘request fee’. This fee is charged every time transactions are sent to be authorized from a card-issuing bank.

Statement fee: This is a payment that is associated with monthly statement which is sent to dealers at the end of every month’s processing cycle.

Minimal monthly fee: By this method the dealers pay a minimal amount each month to cover provider costs to keep an account and create minimum gains.

Batch Fee: After settling their terminal merchants are charged this fee.

Annual Fee: is charged by few providers to pay the maintenance costs of merchant account.

Untimely Termination fee: These fees are charged by few providers if a merchant ends his/her deal prior to the end of contract term. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.