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Ach processing is just a kind 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 financial institution accepts payments for the services or products on behalf of the merchant.

Especially for a merchant offshore merchant serviceswho is|who is|who's} conducting an on line offshore business, it is essential to have a bank that'll 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 types of ach merchant accounts in line with the risk profile the account poses. You will find mainly two forms 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 business which is not a high risk one, it is extremely simple to setup a merchant account.

The 2nd type are called the high-risk accounts which involve the accounts where it is not possible to visually testify the consumer. It is strongly suggested for a business to consult with a company which specializes in placing these hard to position business accounts. These kind of accounts include adult entertainment merchants, online 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 maybe not present. Thereby, the possibility of fraud activity is a lot greater with this specific form of business which results in classifying these kinds of accounts as "high risk" ones. Naturally, these high risk ach merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches that these high risk merchant accounts are more prone to fraudulent transactions.