High risk merchant accounts are that category of businesses that merchant account service providers will shy away from. These businesses are classified as high risk because of the best high risk merchant account provider relatively higher risk of fraud, the possibility of the customers demanding charge-backs and the possibility of having to make a refund to a customer because of poor service rendered by the business. A lot of merchant account service providers consider businesses located off-shore as high risk also, as also any business with no credit history such as some fly-by-night companies that can be here today, gone tomorrow.
However, all said and done it is not impossible for the above mentioned businesses to avail of the services of a merchant account. There will be many services willing to extend their services to high risk merchant accounts, albeit for a higher fee or service charge.
Let us take a look at what some businesses most merchant account providers will categorize as high risk merchant accounts. Any adult service providers such as online dating sites and porn sites are highest on the list as customers to these sites often demand charge backs from their credit card companies. International call centers and internet telephony companies typically known as VoIP or voice over Internet protocol companies are another lot that are considered high risk as also recurring billing services and subscription. The list goes on and on.
Usually the scrutiny of a high risk merchant account will be at the discretion of a merchant account service provider, who at the best of times can be very skeptical. It will appear as if they do not really want any more business, this however, is just a business precaution for most. For some it is a way of negotiating a higher fee. So someone in the market for a merchant account should proceed with a great deal of caution.
Finding a provider is a tough job, at least an honest service provider with no hidden costs and not out to rip you off. There are a few things to look for in a merchant account service provider such as the rate list, list of happy customers, clear cut negotiations on paper. Only when these particulars are placed before you should you proceed to the next step.