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No matter your business model or industry, accepting card payments is a must in today’s electronic world. The beneficial aspect of both debit and credit card payments make it a must-have solution for merchants interested in improving their customer experience. To accept such payments, a business has to have a valid merchant account. In some cases, especially with companies considered start-ups or high-risk, the process of obtaining a merchant account isn’t always easy. Fortunately, many knowledge payment providers offer instant merchant account approval if you have all your ducks in a row. Interesting in learning more? Read on to see if your business can start immediately accepting electronic payments from your clientele.
What is an instant merchant account?
An instant merchant account is an account that can be used to process credit card payments immediately. This type of account is usually set up with a merchant account provider that offers instant approval for new accounts.
How to Increase Your Chances for Instant Merchant Account Approval
If met, below are some factors that can guarantee instant merchant account approval – even for high-risk establishments.
- Ensure Your Credit Score is High – Banks love a good credit score. The higher the score, the easier to receive approval.
- Provide All Relevant Financial Documents – This may include bank statements, business plans, or sample customer contracts.
- Functional Website – Ensure all policies are available for customer review and the pricing of all products or services is accurate.
Factors Delaying Instant Merchant Account Approval
Even if you can provide the initial documentation requested, there may be delays in your approval. Such factors include:
Being a High-Risk Merchant
Some industries fall into the high-risk bucket due to the nature of their operations. Examples include e-gaming, e-pharmacies, or CBD operations. Should your business fall under a high-risk category, then it can take a bit longer for approval.
If you had high chargeback rates with your previous processor, then your business is considered high-risk and subject to a more thorough review. Banks tend to avoid risk at all costs, and high chargebacks equate to more losses than profits.
Poor Credit or Being a Terminated Merchant
One of the downsides of having bad credit is that it reduces instant merchant account approval. Another factor includes merchant account termination by your previous provider. These two often raise red flags that may lead to a decline after further bank review. Therefore, if you find yourself in this scenario, we highly recommend you provide any documentation to show you are back on track and have introduced company policies to correct your prior mishaps.
High Ticket Amounts
Banks have always shown reluctance towards processing large transactions from online businesses, especially. Therefore, if you have a history of processing large, single tickets, be sure to provide documentation detailing why the high amounts are required and all customer payment authorizations form you have on file.
Operating on International Waters
Finally, if operating outside of the US, it can be harder to get approval. Being an international merchant – no matter how clean your dealings are – leads to a more thorough review of your company history.
Choosing a Reliable Payment Partner for Instant Merchant Account Approval
Instant merchant account approval is frequently reserved for top-tier businesses, as you can see. However, working with an established and knowledgeable merchant provider can help your company guarantee approval, even if they don’t immediately check all the boxes. For a decade, the Payment Savvy team has worked closely with clients to understand their business models and create the perfect payment solution for your business. Reach out to us today to start down the path of accepting electronic payments today!
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