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

Especially for a merchant high risk ach who is conducting an on the web offshore business, it is crucial 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 engrossed. As the saying goes, no pain no gain.

Banks or financial institutions do classify the kinds of ach merchant accounts based on the risk profile the account poses. There are mainly two types of merchant accounts. First could be 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 business which can be not a high-risk one, it is quite easy to set 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 is recommended for a business to consult with a company which focuses primarily on placing these hard to place business accounts. These types of accounts include adult entertainment merchants, on the web tobacco merchants, replica merchants, online 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 maybe not present. Thereby, the likelihood of fraud activity is a lot greater with this form of business which results in classifying these kind of accounts as "high risk" ones. Naturally, these high risk ach merchant accounts present the risk of the dreaded charge backs for the banks under consideration. It is often proved by various researches that these risky merchant accounts are more susceptible to fraudulent transactions.

But, it is very important for the merchant to truly have a reputed bank to maintain his on line ach processing. If he goes ahead with the wrong bank, he will quickly see him selves out from the business.

All banks have strict guidelines within their underwriting department with regards to setting up high risk ach merchant accounts. This causes the banks to simply turn down these applications. Among these high risk ach merchant accounts, adult oriented merchants think it is even harder to establish a merchant account. Most banks or financial institutions turn down their applications merely because of the nature of their business content. Despite the fact that the adult oriented business is highly lucrative and is quite stable, most banks consider their ethical values and frequently refrain from establishing high risk ach merchant accounts.

Due to the limited availability of high-risk ach providers, these merchants faces a scenario where in fact the available providers charge them quite anomalous rates for his or her account transactions. Also, there's the possibility that the bank of financial institution continue revising the rates which could astronomically increase in almost no time. But luckily, there is betterment in these areas. Today, you can find banks which execute a case by case analysis and help to setup an account.