By Kent Pinkerton
These days, many people are interested in running online businesses that do not need much capital, allowing them to earn more profit. Through the use of merchant accounts, these online companies are able to accept transactions via credit cards. And because of the convenience of having to pay through a credit card, they are able to become profitable quickly and efficiently. However, getting a merchant account is not easy especially if you are considered "high risk."
Most of the time, businesses who have merchant accounts such as online casinos and adult websites are considered "high risk" due to the fact that they are more likely to be victims of fraud. So how can one get or even maintain these "high risk" accounts without spending too much money?
Unfortunately, there are no such things as cheap high risk merchant accounts. Because of their nature of being "high risk," merchant account providers (MAP) will always be hesitant to grant these online businesses an account. When people apply for, and are accepted by the MAPs, they are likely to charge you high rates in order to keep your account active. Even though rates may vary from one provider to the other, it is still going to take you a lot of money to maintain the account.
If you want to run a business that is considered high risk, then there are organizations that are willing to help you to go through the complex process of getting a merchant account. Though the process may lighten your burden, this does not guarantee getting cheap rates.
The nature of your merchant account is considered high risk so expect a higher rate. There really is no way of going about this. If you want to get a cheap merchant account, then change your business into something that is not considered high risk.
Tuesday, June 23, 2009
Sunday, June 21, 2009
About High Risk Merchant Accounts
By Marcus Peterson
Many processors and banks deem certain types of businesses high risks. These businesses could include travel merchant accounts; pharmacy merchant accounts; adult merchant accounts; telemarketing merchant accounts; Internet merchant accounts, etc.
Banks or other processors consider these accounts high risk because of the potential for excessive charge backs, possible legal violations, returns, or simply bad publicity for accepting those sorts of businesses. High-risk merchants often find difficulty in opening merchant accounts.
Banks and other processors have stringent laws for high-risk merchant accounts. They will invariably evaluate the merchant’s case on certain information like how long he has been in the business, his credit history, and other merchant accounts he has previously held.
In such cases, the duration of time that the merchant’s business has been operating would make a telling difference. If his business has been around for a good length of time, it would act as an assurance to the merchant account provider. It would mean that the merchant has a decent understanding of running a business and the high risks that come with the territory.
Also, providers generally go through the merchant’s credit report. This is to confirm his capacity to repay loans and reveal any data on bad credit, such as bankruptcy. A higher credit score would mean that the chances of the merchant opening his account are also higher.
For someone who has already held a merchant account, the manner by which he had managed his past account would reflect in a negative or positive light on the current application. If the merchant or the provider had terminated the previous merchant account, it will show up on the records.
The providers would also verify information like default payments and charge backs on the merchant’s previous account. The more of these he has, the lesser the chances of the merchant opening a high-risk merchant account.
Many processors and banks deem certain types of businesses high risks. These businesses could include travel merchant accounts; pharmacy merchant accounts; adult merchant accounts; telemarketing merchant accounts; Internet merchant accounts, etc.
Banks or other processors consider these accounts high risk because of the potential for excessive charge backs, possible legal violations, returns, or simply bad publicity for accepting those sorts of businesses. High-risk merchants often find difficulty in opening merchant accounts.
Banks and other processors have stringent laws for high-risk merchant accounts. They will invariably evaluate the merchant’s case on certain information like how long he has been in the business, his credit history, and other merchant accounts he has previously held.
In such cases, the duration of time that the merchant’s business has been operating would make a telling difference. If his business has been around for a good length of time, it would act as an assurance to the merchant account provider. It would mean that the merchant has a decent understanding of running a business and the high risks that come with the territory.
Also, providers generally go through the merchant’s credit report. This is to confirm his capacity to repay loans and reveal any data on bad credit, such as bankruptcy. A higher credit score would mean that the chances of the merchant opening his account are also higher.
For someone who has already held a merchant account, the manner by which he had managed his past account would reflect in a negative or positive light on the current application. If the merchant or the provider had terminated the previous merchant account, it will show up on the records.
The providers would also verify information like default payments and charge backs on the merchant’s previous account. The more of these he has, the lesser the chances of the merchant opening a high-risk merchant account.
Monday, June 15, 2009
High Risk Merchant Accounts
By Marcus Peterson
High risk merchant accounts are designed for people engaged in high risk businesses such as telemarketing, travel industry, multi level marketing, gaming, adult services, pharmacies, phone card sales, timeshare rentals, and credit repair and counseling. Many banks and merchant account providers (Map?s) do not provide merchant accounts to these high risk merchants, because the risk of credit card fraud increases with the increase in the turn-over of these businesses.
Advantages of high risk merchant accounts include high chargeback threshold, online reporting of transactions, multicurrency credit card processing, real-time capabilities, 24 hr customer support, and acceptance of all major credit cards. High risk merchant accounts provided by offshore providers are also tax free.
The most difficult step in setting up of a high risk merchant account is to get qualified for it. Merchant account providers will evaluate your credit report and previous merchant accounts you own. The better your credit history, the greater your chance to set up a merchant account.
The fee for setting up and maintaining high risk merchant accounts can differ considerably according to the provider, risk involved and the type of the business. Usually the setup fees for these accounts are quite similar to other merchant accounts, often around $500. Some providers may charge you as much as $7000. The transaction fee (around $0.5), discount rate (around 6.5% to 9%), rolling reserve (10% to 15%), and monthly/weekly settlements are usually higher than those of usual onshore merchant accounts. Most high risk merchant account providers do not demand any security or guarantee deposits. All high risk merchant accounts are multicurrency accounts.
Merchant Accounts provides detailed information on Merchant Accounts, Credit Card Merchant Accounts, Internet Merchant Accounts, About High Risk Merchant Accounts and more. Merchant Accounts is affiliated with Internet Merchant Services.
High risk merchant accounts are designed for people engaged in high risk businesses such as telemarketing, travel industry, multi level marketing, gaming, adult services, pharmacies, phone card sales, timeshare rentals, and credit repair and counseling. Many banks and merchant account providers (Map?s) do not provide merchant accounts to these high risk merchants, because the risk of credit card fraud increases with the increase in the turn-over of these businesses.
Advantages of high risk merchant accounts include high chargeback threshold, online reporting of transactions, multicurrency credit card processing, real-time capabilities, 24 hr customer support, and acceptance of all major credit cards. High risk merchant accounts provided by offshore providers are also tax free.
The most difficult step in setting up of a high risk merchant account is to get qualified for it. Merchant account providers will evaluate your credit report and previous merchant accounts you own. The better your credit history, the greater your chance to set up a merchant account.
The fee for setting up and maintaining high risk merchant accounts can differ considerably according to the provider, risk involved and the type of the business. Usually the setup fees for these accounts are quite similar to other merchant accounts, often around $500. Some providers may charge you as much as $7000. The transaction fee (around $0.5), discount rate (around 6.5% to 9%), rolling reserve (10% to 15%), and monthly/weekly settlements are usually higher than those of usual onshore merchant accounts. Most high risk merchant account providers do not demand any security or guarantee deposits. All high risk merchant accounts are multicurrency accounts.
Merchant Accounts provides detailed information on Merchant Accounts, Credit Card Merchant Accounts, Internet Merchant Accounts, About High Risk Merchant Accounts and more. Merchant Accounts is affiliated with Internet Merchant Services.
Friday, June 12, 2009
What are High Risk Merchant Accounts?
By Kent Pinkerton
Ever thought of starting your own porn site? If you were to do such a thing and charge money for membership, then you would need a high risk merchant account.
What is a merchant account?
A merchant account is an essential account that you need in order to accept credit cards online. If you plan on running a website that allows you to collect fees from those who visit your site, then you can not start doing so without the merchant account.
So how do you get one? First of all, you must choose a merchant account provider (MAP). These providers may present you with attractive low rates but be warned because there are a lot of shady providers out there. Make sure you have checked out the provider and have read everything in the contract before you make your final decision.
Kinds of merchant accounts
There are three kinds of merchant accounts that you can consider.
1. Internet Merchant Account. This is the account for those who are marketing or advertising their services or products online.
2. Online Merchant Account. This is the account for those who want to sell their products online and not just advertise them. Payment for these products are also done online.
3. Merchant Service. This is a software that takes care of the credit card transactions.
The high risk merchant account
If you are running a high risk merchant account ,it is most likely that you will have a hard time finding credit card processing options. There are only a limited number of providers who are willing to accept such clients and if they do, their rates are often high. High risk accounts include adult websites, online casinos, and pharmaceutical merchants.
Ever thought of starting your own porn site? If you were to do such a thing and charge money for membership, then you would need a high risk merchant account.
What is a merchant account?
A merchant account is an essential account that you need in order to accept credit cards online. If you plan on running a website that allows you to collect fees from those who visit your site, then you can not start doing so without the merchant account.
So how do you get one? First of all, you must choose a merchant account provider (MAP). These providers may present you with attractive low rates but be warned because there are a lot of shady providers out there. Make sure you have checked out the provider and have read everything in the contract before you make your final decision.
Kinds of merchant accounts
There are three kinds of merchant accounts that you can consider.
1. Internet Merchant Account. This is the account for those who are marketing or advertising their services or products online.
2. Online Merchant Account. This is the account for those who want to sell their products online and not just advertise them. Payment for these products are also done online.
3. Merchant Service. This is a software that takes care of the credit card transactions.
The high risk merchant account
If you are running a high risk merchant account ,it is most likely that you will have a hard time finding credit card processing options. There are only a limited number of providers who are willing to accept such clients and if they do, their rates are often high. High risk accounts include adult websites, online casinos, and pharmaceutical merchants.
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