If you’re a high risk business, you may find it difficult to get approved for a merchant account for this or that reason. However, knowing what your high risk processor will require from you, you can take the right steps so that not to get refused. Below you can read the main reasons why your application may be declined.
- Not Being Truthful About Your Monthly Processing Volume and Average Ticket Size
When filling out your merchant account application, you’ll be required to provide your monthly processing volume and your average ticket size. If the processor finds out these numbers differ from the type of business you operate, you’re likely not to get approved for your merchant account.
Avoid providing misleading information. Tell the truth about the goods/services you’re selling and the amount you’re charging. Don’t hide anything.
- Your Name Is On The MATCH List
If your merchant account was terminated in the past, you may be present on the MATCH list by Visa and MasterCard. It’s also known as the Terminated Merchant File (TMF). The thing is that all acquiring banks and credit card processors can access this list and check whether you’re on it.
To avoid appearing on the MATCH list, you should make sure the directors you appoint or even major shareholders in the business have a clean history. Moreover, you shouldn’t have any outstanding bills or fees from previous merchant accounts. Finally, your chargeback ratio should be low enough.
If your name is already on the MATCH list, it’ll remain there for 5 years. It won’t be easy to get your name off the list. If you’re going to apply for a merchant account having your name on the list, you should take extra steps and submit extra documents so that to meet the requirements of the bank.
- When Your E-Commerce Industry Isn’t Acceptable
The majority of high risk credit card processors have a list of industries that are unacceptable for them. Emerchantbroker.com, the #1 high risk payment processor in the US, offers the best services to merchants of any type and size, including those with a merchant account declined. EMB boasts an A+ rating with the BBB and is rated A by Card Payment Options.
- If Your Business Is Associated with Fraud Or Illegal Activity
If the acquiring bank sees your products/services are linked to fraud or illegal activity, it may decline your merchant account application. Some of the cases include:
- Products on a website that don’t match the description or cost
- Merchant is trying to sell controlled drugs
- Illegal adult content, including child pornography, bestiality, incest, or extreme violence
Be honest when you’re asked about your business. Never lie about what you’re selling. Stay away from fraud and illegal activity.
Applying for a merchant account can be intimidating. The above-mentioned points can help you take the right steps so to get approved for a merchant account without major challenges.