Types of Merchant Account

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Running an online business also means a huge possibility of having international customers for your products. And if you are running an online business, then applying for an offshore merchant account is a good idea. What is offshore merchant account provider? It will help you to set up an offshore account that can provide you simplicity in your transactions, asset protection, and minimized tax liability. However, many offshore merchant account providers charge huge amount of fees and other charges so as a business owner; you need to be careful about whom you choose as your provider. Online business owners can choose the type of accounts that they want depending on the type of your business needs and for certain kind of businesses, you will need to have a high risk merchant account.

There are different types of merchant accounts available:
*Internet Account

This kind of account allows merchants to accept payments for their products that are sold over the internet. Payment gateway is being used if the merchants decided to accept credit cards over the internet in order to process credit card transactions.

*High Risk Accounts

There are types of online business that are said to expose the banks or processors to high level of risk such as travel, online pharmacy, adult, club memberships and pawn shops are some of the examples of high risk merchant accounts. These accounts are considered “high risk merchant accounts” of the instances that there will be a potential for excessive chargeback from customers, products and excessive returns, long time period to fulfil the order, financial liability that the bank or processor might incur for processing for the merchant are some of the reasons.

*Offshore Accounts

An international market share is one of the examples of offshore account. It is considered high risk because people can get offshore accounts for many reasons. They can have high volume merchant accounts, and lenient business legislation and many others.