Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

The Role of Issuing and Acquiring High Risk Merchant Accounts

By Julia Roger Subscribe to RSS | January 11th 2012 | Views:
loading
 
  



There are many businesses today that that are categorized as ‘high risk’”. In many of these businesses, it has been seen that there are greater chances of chargeback’s, fraud, or payment reversals. In such scenarios, the banks become liable and they can lose a good amount of money. In such cases, some banks offer high risk merchant accounts with high fees and rates.

The businesses that are offered these high risk accounts are adult content business, travel agencies, auto booking, pharmaceuticals, collection agencies, online gambling and many more. Due to the high volume of transactions, there are more instances of payments being made with stolen credit card information. In this case, the issuing bank will most likely get a chargeback for the faulty party. So to provide maximum security of funds for the acquiring bank, they will often times require a payment processing contract stating that the bank is not responsible for any issues including the integrity of funds. The payment settlement can be delayed in such scenarios and the account holder may needs to maintain a reserve fund of 10% or more with the banks for a period of 30 to 180 days.

There are a good number of high risk merchant account providers who operate onshore and offshore. These banks and financial institutions have different rates and different mechanism for these accounts. It is always better to ask for quotes from both onshore and offshore providers for the simple reason being you may miss the lowest deal otherwise. It is also possible to negotiate the account charges and ask for interest on the deposit. Choosing well can save you a lot of money.

Julia Roger - About Author:
For more information on high risk merchant accounts, check out the info available online; these will help you learn to find the high risk merchant account providers!

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/the-role-of-issuing-and-acquiring-high-risk-merchant-accounts.htm

Related Finance Articles Subscribe to RSS

New York auto insurance attract high rates
Published by Alabamaauto Insurances on January 17th 2012 | Finance
Residents of New York are some of the people who have to pay high rates in auto insurance policies. ...
 
What are the benefits of merchant cash advances?
Published by Mathias Scott on April 2nd 2012 | Finance
Every business ends up in the dumps once in a while and that is when you will need some instant cash...
 
Asked more Manoj Narang, Take control of about high-frequency tips? to understand
Published by Crofton Holmes on January 5th 2012 | Finance
Quite a few keep attempt to democratize ones character with exceptional research in the real estate ...
 
About high risk merchant accounts
Published by James Blee on February 22nd 2012 | Finance
Every businessperson needs to understand the ways and means to benefit more by fully understanding ...
 
Why merchant loans trump all
Published by Joseph Richard on April 4th 2012 | Finance
Every business needs some help every now and then. That is when you need to consider the different o...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...