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Ach processing is really a kind of business account between a merchant and a bank or lender which facilitates the ach payment processing transactions of the merchant. This contract helps to ensure that the bank accepts payments for the products or services on behalf of the merchant.

Particularly for a merchant offshore merchant serviceswho is|who is|who's} conducting an online offshore business, it is vital to have a bank that will process his ach transactions.|which will|that'll} process his ach transactions. All businesses do have a certain component of risk factor involved with it. As the saying goes, no pain no gain.

Banks or finance institutions do classify the kinds of ach merchant accounts based on the risk profile the account poses. You will find 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 danger involved is minimal. If the concerned party conducts a small business that is not really a high risk one, it is rather easy to put up a merchant account.

The second type are called the high-risk accounts which involve the accounts where it is not possible to visually testify the customer. It's recommended for a business to consult with a company which focuses on placing these hard to put business accounts. These types of accounts include adult entertainment merchants, on line tobacco merchants, replica merchants, on the web gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, online auctions and debt services, ISP and hosting services, online dating services or simply any transaction that takes place with the customer physically perhaps not present. Thereby, the likelihood of fraud activity is much greater with this kind 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 in question. It's been proved by various researches why these high risk merchant accounts are far more vunerable to fraudulent transactions.