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Ach processing is a type of business account between a merchant and a bank or standard bank 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 on line 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 part of risk factor involved with it. As the saying goes, no pain no gain.

Banks or financial institutions do classify the kinds of ach merchant accounts on the basis of the risk profile the account poses. There are mainly two types of merchant accounts. First may be the normal account, where in actuality the merchant can directly access the card and ensure that this is a legitimate customer, thereby the risk involved is minimal. If the concerned party conducts a small business which can be not a high-risk one, it is quite easy to create a merchant account.

The second type are called the risky accounts which involve the accounts where it isn't possible to visually testify the client. It's highly 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, online tobacco merchants, replica merchants, on the web gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, sale and debt services, ISP and hosting services, online dating sites services or simply any transaction that takes place with the customer physically not present. Thereby, the possibility of fraud activity is significantly greater with this specific type 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 involved. It is often proved by various researches that these high risk merchant accounts tend to be more prone to fraudulent transactions.

But, it is very important on the part of the merchant to have a reputed bank to provide for 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 in their underwriting department when it comes 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 ascertain a merchant account. Most banks or banking institutions turn down their applications merely due to the nature of the business content. Although the adult oriented business is highly lucrative and is quite stable, most banks consider their ethical values and often refrain from setting up risky ach merchant accounts.

Due to the limited accessibility to high risk ach providers, these merchants faces a scenario where the available providers charge them quite anomalous rates because of their account transactions. Also, there is the chance that the bank of lender keep on revising the rates which can increase in no time. But fortunately, there was betterment in these areas. Today, there are banks which execute a case by case analysis and help to set up a free account.