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Ach processing is just a kind 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 for the merchant.

Especially for a merchant high risk achwho is|who is|who's} conducting an online offshore business, it is essential to have a bank which will process his ach transactions.|which will|that'll} process his ach transactions. All businesses do have a certain element of risk factor engrossed. While 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 in fact the merchant can directly access the card and ensure that this is a legitimate customer, thereby the danger involved is minimal. If the concerned party conducts a business which is not a high risk one, it is rather simple to set up a merchant account.

The 2nd type are called the high risk accounts which involve the accounts where it isn't possible to visually testify the customer. It's recommended for a business to consult with a company which focuses on placing these hard to place business accounts. These types of accounts include adult high risk ach processing, on line tobacco merchants, replica merchants, on the web gambling merchants, pre-paid calling merchants, VOIP merchants, multi-level marketing merchants, online auctions and debt services, ISP and hosting services, internet 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 particular type of business which results in classifying these kind of accounts as "high risk check processing Naturally, these high-risk ach merchant accounts present the chance of the dreaded charge backs for the banks involved. It's been proved by various researches these high risk merchant accounts are more vunerable to fraudulent transactions.

But, it is very important for the merchant to really have a reputed bank to maintain his online ach processing. If he goes ahead with the wrong bank, he'll very soon see him selves out of 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 miss these applications. Among these high-risk ach merchant accounts, adult oriented merchants think it is even harder to determine a merchant account. Most banks or financial institutions turn down their applications merely due to the nature of these business content. Even though the adult oriented business is highly lucrative and is quite stable, most banks consider 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 due to their account transactions. Also, there is the possibility that the lender of financial institution continue revising the rates that may astronomically escalation in virtually no time. But luckily, there is betterment in these areas. Today, there are banks which do a case by case analysis and help to put up a merchant account.