Do you deal in a business that makes replica items? If you make replicas of designer handbags, watches, shoes, clothing and other items, you can enjoy a very successful business. After all, many people are more than happy to pay only a small percentage of what they would pay for the name brand item. At the same time, since there is always the possibility that your customers will be unhappy with the replica or may claim that they were mislead when making the purchase, credit card processors consider your business to be riskier than many other types of businesses.
The replica business has taken off in recent years. Due to the huge increase in profitability, having a replica merchant account to process payments has become even more important. Consumers have shifted from using plastic as their primary means of payment for luxury items such as replica purses, wallets, etc. The inability to accept credit card payments in the replica business could mean the difference between staying in business and shutting down. Sadly, banks have no interest in whether or not your small business is forced to close up shop because they refused to approve your replica merchant account request. In fact, incorporating banks are not likely to approve replica merchant account requests at all!
The replica industry, due to the nature of the industry itself, suffers greatly from fraud and charge-backs. The ability to profit from misleading customers is sometimes too much. Subsequently, many replica firms find their revenues stripped from them because one of their customers misunderstood or was mislead about the purchase they were making. Incorporating banks see the high percentage of charge-backs and they want no part in it. For many, the dangers inherent in the industry are great enough to cause them to refuse approving any replica merchant accounts at all. Even though many incorporating banks won’t approve replica merchant accounts because of their high-risk nature, there are still some that will.