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Ach processing is just a type of business account between a merchant and a bank or lender which facilitates the ach payment processing transactions of the merchant. This contract means that the financial institution accepts payments for the products or services on behalf of the merchant.

Particularly for a merchant high risk merchant servicewho is|who is|who's} conducting an on line offshore business, it is vital to have a bank that'll process his ach transactions.|which will|that'll} process his ach transactions. All organizations do have a certain element of risk factor involved with it. Since the saying goes, no pain no gain.

Banks or banking institutions do classify the types of ach merchant accounts based on the risk profile the account poses. There are mainly two kinds of merchant accounts. First is the normal account, where the merchant can directly access the card and ensure that it is a legitimate customer, thereby the chance involved is minimal. If the concerned party conducts a business which is not really a high-risk one, it is extremely easy to set up a merchant account.

The next type are called the risky accounts which involve the accounts where it is not possible to visually testify the customer. It is strongly suggested for a business to consult with a company which focuses primarily on placing these hard to put business accounts. These kind of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, on line gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, online auctions and debt services, ISP and hosting services, online dating services or just any transaction that takes place with the customer physically not present. Thereby, the chance of fraud activity is a lot greater with this type of business which results in classifying these kind of accounts as "high risk" ones. Naturally, these high risk ach merchant accounts present the chance of the dreaded charge backs for the banks under consideration. It is often proved by various researches that these risky merchant accounts are far more prone to fraudulent transactions.

But, it is crucial for the merchant to have a reputed bank to maintain his online ach processing. If he goes ahead with the wrong bank, he can quickly see him selves from the business.

All banks have strict guidelines within their underwriting department when it comes to setting up risky ach merchant accounts. This causes the banks to simply turn down these applications. Among these risky ach merchant accounts, adult oriented merchants find it even harder to establish a merchant account. Most banks or finance institutions turn down their applications merely due to the nature of the business content. Even though the adult oriented business is highly lucrative and is quite stable, most banks take into account their ethical values and frequently refrain from setting up risky ach merchant accounts.

Due to the limited availability of high risk ach providers, these merchants faces a scenario where the available providers charge them quite anomalous rates because of their account transactions. Also, there is the chance that the lender of financial institution carry on revising the rates which could increase in no time. But luckily, there is certainly betterment in these areas. Today, you can find banks which perform a case by case analysis and help to set up a free account.