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Applying for a High-Risk Merchant Account

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A business may be considered high-risk based on a number of factors. These include strict regulation by governmental agencies, public perception of the industry a company operates within and higher than average chargeback ratios. A significant number of businesses are unaware they are considered a high-risk merchant until they begin applying for a merchant account to process credit card, debit card, and ACH payments. Traditional banks and payment processors are not willing to work with high-risk businesses, so you may face many declines when attempting to apply via mainstream means.

Where does this leave you if your high-risk business? There are payment processing specialists, such as Payment Savvy, that specialize in providing merchant services for companies labeled high-risk. Heeding the following advice will increase chances your payment acceptance application is approved quickly and efficiently.

High-Risk Merchant Tip #1 – Be Open and Honest with Your Payment Processor

High-Risk Merchant Account, Credit and Debit Card Processing, Payment Processor, High-RiskAlways be honest with your merchant account provider. Fully disclose the products or services your company specializes in.  Notify your payment processor if your credit is less than stellar or you have liens or judgments against your business or yourself. The bank underwriting you merchant application will do a thorough review of your business and complete an extensive check of the business owner’s background. Your payment processor should be your payment partner. Fully disclosing any hiccups will best help your merchant provider best shape a payment solution to allow for optimal success and best chances of approval.

High-Risk Merchant Tip #2 – Prove Financially Security

Showing your business has a history of stable and strong financials goes a long way to help your business get approved for a high-risk merchant account. Be sure to have your financial statements, business banking statements, and tax returns in order, up-to-date, and ready to provide the payment processor. It’s imperative to show steady and consistent positive growth of your high-risk business to prove you are able to deal with an emergency financial setback should one occur.

High-Risk Merchant Tip #3 – Supply Prior Payment Processing History

If able, you will be asked to provide your most recent payment processing statements. Merchant providers review this imperative data to confirm your business has an established history of good processing. They will confirm your monthly volume. average ticket and high ticket amount remain similar from month to month. Having inconsistent figures will raise red flags as banks can perceive it a has a greater propensity to fraud. As a high-risk merchant, it is also imperative your chargebacks remains at or below the acceptable threshold of 1% on a monthly basis.

Following the above advice will go a long way to ensure your merchant application goes to the declined pile to approved. Your high-risk business already faces uphill battles to overcome in order to succeed, do not let the ability of not being able to accept credit card, debit card, or ACH payments be your downfall. Payment Savvy specializes in providing custom and innovative payment acceptance solutions to high-risk business. With over 30 years of combined experience in the arena, our Savvy Squad is ready to help answer the questions you have and walk you through the steps of successfully applying for a merchant account. Reach out to us today to get started – 866.303.2558 – we look forward to working with you!!

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