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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 ensures that the bank accepts payments for the products or services on behalf of the merchant.

Especially for a merchant high risk merchant servicewho is|who is|who's} conducting an online offshore business, it is crucial to have a bank which will 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 kinds of ach merchant accounts in line with 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's a legitimate customer, thereby the chance involved is minimal. If the concerned party conducts a company which is not just a high-risk one, it is quite simple to set up a merchant account.

The second type are called the risky accounts which involve the accounts where it's not possible to visually testify the client. It is highly recommended for a business to consult well a company which specializes in placing these hard to place business accounts. These kind of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, online gambling merchants, pre-paid calling merchants, VOIP merchants, multi-level 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 not present. Thereby, the chance of fraud activity is a lot greater with this form of business which results in classifying these types 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 has been proved by various researches why these risky merchant accounts are more susceptible to fraudulent transactions.

But, it is very important on the part of the merchant to truly have a reputed bank to look after his on line ach processing. If that he goes ahead with the wrong bank, he can very soon see him selves out of the business.

All banks have strict guidelines within their underwriting department in terms of creating 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 find it even harder to establish a merchant account. Most banks or financial institutions ignore 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 take into account their ethical values and often avoid setting up high risk ach merchant accounts.

As a result of limited availability of high risk ach providers, these merchants faces a scenario where the available providers charge them quite anomalous rates for his or her account transactions. Also, there is the chance that the bank of financial institution keep on revising the rates that may increase in no time. But fortuitously, there's betterment in these areas. Today, there are banks which execute a case by case analysis and help to create an account.