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HOW YOU CAN BOOST SALES AND GENERATE REVENUE USING OFFSHORE HIGH RISK MERCHANT ACCOUNTS

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 scenarios:

  • 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 a chargeback.

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:

1)    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.

2)    These accounts let you accept credit cards even though your business is classified as “High Risk”.

3)    With these accounts you don’t have the risk of receiving a TMF.

4)    High Risk accounts especially designed for certain businesses are available which lets you cut down even more on penalties due to chargeback’s. 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.