HOW YOU CAN BOOST SALES AND GENERATE
REVENUE USING OFFSHORE HIGH RISK
This article describes the scenario’s in
which your business’ sales and revenue
with rise by have a high risk merchant
account. It also tells you how useful
these accounts can be when your
application for other types of merchant
accounts has been rejected by most of
the banks and service providers.
A business is classified as high risk
when it has an extremely high percentage
of chargeback’s and returns. Some of the
common businesses that are classified as
“High Risk” are: hardware, software,
adult content websites, online
pharmaceuticals and drug stores, VoIP
telephony and casino and online
gambling. The complete list differs from
one processor to another.
A high level of chargeback’s and returns
is extremely inconvenient for every
party that is involved in the processing
of credit cards like credit card
processing bank, merchant account
providing bank and the merchant. Returns
and chargeback’s are the primary reason
for terminating the merchant accounts
and contracts. Once your merchant
account is terminated your status will
be TMF which will make it almost
impossible for you to get another
merchant account. Chargeback’s are not
liked the processing entities because it
comes with many expenses.
Returns and Chargeback’s happen is two
When an unsatisfied customer applies
for a chargeback or a return with
his credit card company. The
customer may not be satisfied
because either he did not like your
product or may be he did not get it.
Some one makes a purchase with a
credit card that is stolen. When the
actual owner of the card notices
this, he will immediately apply for
Remember that high risk credit card
processors and high risk merchant
accounts don’t protect you from the
chargeback cases; prevention or
reduction is achieved through other
means. Even here there is a maximum
level of chargeback’s.
“High Risk Merchant Accounts” are not
terminated because they are designed for
high level of chargeback’s and return's.
The penalties are much lesser with these
accounts than the normal ones. Every
business under the “high risk” category
has its own level of chargeback and
therefore, its own rates or penalties
for chargeback. For example, online
gambling sites have higher chargeback’s
than online pharmacies. There are
merchant accounts that are designed only
for a specific business or industry.
However, they are not high risk merchant
accounts and therefore can lead to a TMF.
Some Benefits of High Risk accounts are:
These accounts have lower
chargeback rates or penalties when
compared to the normal merchant
accounts. Therefore, if your business
has more number of chargeback’s then
this is the right account for you.
These accounts let you
accept credit cards even though your
business is classified as “High Risk”.
With these accounts you
don’t have the risk of receiving a TMF.
High Risk accounts
especially designed for certain
businesses are available which lets you
cut down even more on penalties due to
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.