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

Especially for a merchant offshore merchant serviceswho is|who is|who's} conducting an on the web offshore business, it is crucial to truly have a bank that will process his ach transactions.|which will|that'll} process his ach transactions. All businesses do have a certain element of risk factor involved with it. Because the saying goes, no pain no gain.

Banks or financial institutions do classify the types 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 it is a legitimate customer, thereby the chance involved is minimal. If the concerned party conducts a business which will be not a high risk one, it is extremely 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 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 simply any transaction that takes place with the customer physically not present. Thereby, the likelihood of fraud activity is much greater with this form of business which results in classifying these types of accounts as "high risk" ones. Naturally, these risky ach merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches these high risk merchant accounts are more prone to fraudulent transactions.