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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 helps to ensure that the bank accepts payments for the products or services for the merchant.

Specifically for a merchant [http://highriskmerchantservice.com/AMGServices/OffshoreMerchantAccount.aspx offshore merchant services]who 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. As the saying goes, no pain no gain.

Banks or finance institutions do classify the types of ach merchant accounts based on the risk profile the account poses. There are mainly two kinds of merchant accounts. First could be the normal account, where in actuality the merchant can directly access the card and ensure that this is a legitimate customer, thereby the chance involved is minimal. If the concerned party conducts a company that is not really a risky one, it is rather simple 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 client. It's 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, on line 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, internet dating services or just any transaction that takes place with the customer physically not present. Thereby, the chance of fraud activity is significantly greater with this kind 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's been proved by various researches that these risky merchant accounts are more susceptible to fraudulent transactions.