How To Set Up A High Risk Merchant Account

2007-03-08 10:33:40

( Financial )



Some merchants are considered to be high risk because of the high amount of chargebacks that are received by the merchant, due to the illegitimate usage of credit cards. In the end, any losses that are incurred because of these occurrences are borne by the merchant.

Businesses that have a high credit risk can also be declined a merchant account. Online pharmacies, telemarketing companies, adult oriented service providers, travel agencies and online auctioneers are some forms of high credit risk businesses.

When an application for a business merchant account is declined, applying for a high risk merchant account becomes the next practical option. High risk merchant accounts can be set up anywhere around the world, and some are known as offshore merchant accounts.

You will need to find a reputable merchant account provider in order to set up a high risk merchant account. You should obtain information on the set up fees of the provider, as well as any other fees that are involved with opening a high risk offshore merchant account.

Many merchant account providers can be found on the Internet, and applications can be made online. After filling up an application form, the provider will review all of your information, and request you to submit certain documents. These can include information on your corporate checking account, a copy of a cancelled check, some business references and a copy of your articles of incorporation. There may also be a need to submit your company’s return policy information, your website address, company financials, and a copy of your driver’s license. Other additional documents may be needed depending on the high risk merchant account provider.

After the submission of these documents, you will need to wait for a certain number of days before you are informed of the results. Once you receive a notice of approval, you will then need to obtain the merchant account processing software which should be provided by the vendor, or be given a link to set up the software yourself online. Once the program is set up, you will then be able to accept credit card payments by accessing your merchant account. It will be the job of the merchant account supplier to handle all of your card transactions. Discount and transaction fees are charged to the merchant for each sale that is made.


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