Only high risk credit card merchant accounts allow you to process high risk credit cards. This is as simple as that. Normally, high risk credit card merchant accounts are used by businesses that are involved in international marketing, adult entertainment, online pharmacies and gambling. You might wonder why so. The reason is simple. Out of 100 transaction requests these businesses receive, about 30 percent tend to be fraudulent ones or chargebacks. Due to these, most of the regular banks tend to avoid associating with such businesses by all means.
If you happen to be one who is planning to get a high risk credit card processing facility at your office, remember that you will be asked by your banker to specify your business. And if your business happens to be any of the aforementioned sorts, chances are high that your request will be rejected. However, there is nothing to worry about. There are several banks that offer high risk credit card processing service outright. Apparently, the charges to open a high risk credit card merchant account are relatively higher.
Issues with high risk credit card merchant account
You now know that you would need a high risk credit card merchant account in order to activate a high risk credit card processing facility at your business. Well, getting such an account alone wouldn’t bring you to this. You will have to closely monitor all the transactions through your account. No banks would tolerate too many chargebacks. If your account gets chargebacks very often, remember that the banker will close your account without any prior notification. So, you are solely responsible for monitoring your account and avoiding all type of fake transactions through it.
Opening a high risk credit card merchant account after the closure of an existing one
Opening a second or third high risk credit card merchant account is relatively more complicated. Most bankers know that you are required to open a second account because your first account got closed due to chargebacks or other fraudulent transactions. Normally, they would deny your request. Because your credit score is published and every banker has access to it, it is very hard to try your luck with a different banker as well.
Maintaining a high risk credit card merchant account is very demanding. It requires your close monitoring. So, it is highly recommended to avoid all types of transaction requests that look fishy.