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. best offshore merchant account providers
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.