How to choose a suitable high risk merchant account from a merchant account agent?

It is essential for the businessman to get a high risk merchant account to accept the credit card payments made by the clients. As some industries are concerned, it is very difficult to get one, if they are considered as one who is under high risk, by the merchant account agents. The industries which are considered as under high risk by the merchant account agents are model products, dating, telemarketing, adult, multi level marketing, cell phone, auctions and travel and pharmacy.

There are banking organizations and third party merchant account agents who consider these industries as under high risk because of the higher level of charge backs, returns and other credit card cheatings. Because of all these reasons, there are high charges that are associated with merchant accounts. It is very difficult to get a high risk merchant account from the banking organizations and original merchant account agents and is quite expensive too. In usual cases, the banking organizations will not provide merchant account services to the high risk merchant accounts. Even if they provide the merchant account service, it will be usually higher than the one which is provided by the third party merchants. Other than the original merchant account agents, third party merchant account agents will be able to provide the merchant accounts as they have tie ups with more than one bank, enabling them to spread the risk.

There are several third party merchant account agents whose rates are lower than those which are charged by a bank. But, the rate will be comparatively higher when compared to the other merchant accounts as there is more risk involved. The application charge for a high risk merchant account will usually range from 500 dollars to 5000 dollars. There are high risk merchant account agents who does not charge application fee. Then, there are transaction charges and discount rate which is to be paid at the time of the processing of the transaction. The transaction charges will range between 0.35 US dollars to 0.75 dollars. The discount rate is total percent of the processed amount and will be three percent to fifteen percent.

The high risk merchant account agents will look at the time, the applicant will be engaging in the business and also will go through the charge back history of the applicant. If the aspirant has very low charge backs and has been in the industry for long years, the merchant account agent will provide the facility of high risk merchant account. It will usually take weeks to get the approval for a high risk merchant account.

There are several advantages of getting a high risk merchant account as they will be able to receive all kinds of prominent credit cards, round the clock client support, real time credit card processing, multi currency transactions and the holder of the card will have several advantage of taxes. If the retail merchant is not able to get a high risk merchant account, he can seek the help of a third part processor to get an online high risk merchant account.