High-Risk Merchant Account

There are number of types of business models to expose the bank to higher level of risk. Some of these are: Adult Merchant Accounts, Travel Merchant Accounts, Internet Merchant Account, Pharmacy Merchant Account, and many more.

A high risk merchant account helps to combine with an offshore bank account to obtain settlements in a confidential tax free setting.

An offshore merchant account allows you to pay by credit cards, thus making available the advantages of higher sales volumes to you.
A merchant account follows certain rules that you should know, that are:

• Anonymous Merchant Accounts are not allowed. No problem whether you are using an anonymous bearer share corporation; while account setting, the Merchant Account Corporation (MAC) may or may not tell you to give the relevant company documents (i.e. financial statements or identity information).
• With MA, you should search what the time limit between the sale and receiving the funds, and how often you will be paid.
• The MA can be closed, if you are facing the high chargeback rate more than the 1 percent to 2 percent range. But some MA providers will try to reduce your chargeback rate before choosing an option like closing an account, if you chargeback rate is less or equal to 3 percent.
• Some countries have a very high chargeback rates, which is generally fraud problem, therefore some MA providers will block or stop those countries even from applying.

You must be aware of the fraudulent offshore merchant providers. Fraudulent processors will take several months to process worth of sales that are gone in a chargeback holdback fund. They always gives the reasons to why they are not showing these amounts and keep delaying for two to three more months and then they close your account.