There are many businesses that have gone through the unfortunate experience of being denied by a merchant account provider. They may have been provided with one or more reasons for that denial, and they may wonder how they can resolve this type of situation. Contrary to popular belief, especially by those that have been denied, these companies really do want your business. Every time that you make a transaction, they are going to make money. Therefore, it is in their best interest to approve as many people as possible. Where this becomes difficult is when you are selling products, or offering services, that are considered to be high risk. You could be offering a debt consolidation service, selling firearms, or selling CBD oil. In each of these cases, you would not be able to use a traditional merchant account provider. However, there are many high risk merchant account providers that will be more than happy to provide you with an account. Let’s first address the five top reasons that a business can be denied by one of these companies, and then show you how to get a merchant account that offers reasonable rates.
Your Business Has Bad Credit
One of the primary reasons that people are denied by these merchant account companies is that they do not have very good credit. They are going to run a credit check on your business, and on you, to see if they want to have your business. If you have a very low rating, this means that you have had problems in the past, perhaps with other companies that have offered you similar services. If that has happened in the past, then you will want to improve your credit score if possible using professional services that can do this for you quickly.
Poor Description Of Your Business
When you are filling out the questionnaire from these merchant account providers, if you are description of your business does not make sense to them, they are not going to approve you. For example, if you are stating that your monthly sales volume is $200,000, but you are selling products that are under $50 each, they may wonder how in the world you are able to make this much money. They will look at the product or service that you are offering, and may also consider the amount of traffic that you are receiving, and it may not add up at all. Therefore, you need to be completely honest when you are submitting these applications to build that trust factor with these businesses. Doing so will help you get an approval over others that are embellishing upon how much their business actually makes.
The Reputation Of Your Business Is Poor
One of the drawbacks to the Internet is that most businesses become very transparent, specifically in regard to public feedback. If there are websites that are allowing people to comment on local businesses, and they read multiple negative comments, this is a clear sign that you are probably doing a lot of chargebacks. If that is the case, they certainly will not want to work with you.
You Are Blacklisted
If you are on the TMF list, which means you are on a list of businesses on the Terminated Merchant File, this is a clear sign that you will be denied. If you fail to disclose this, and they find out, you will automatically be denied. This will not just be because of being on the list, but of your failure to disclose that you are on it.
Your Business Sells High Risk Products Or Services
The final reason that you could be denied is that you are selling products that are considered to be high risk. Most merchant account providers will not work with these companies. If you are in an industry that is selling adult products, cannabis related products, or credit related services, you will not be able to get a merchant account in most cases.
How To Find Merchant Account Providers That Will Work With You
If you want to find a merchant account that will work with you, even if you are selling a high risk product or service, you need to find those that specifically work with these types of businesses. In fact, when you do a search for high risk merchant accounts, you are going to locate a multitude of businesses that are willing to take on clients just like you. If you have good credit, and you are not on the TMF list, they will likely allow you to sign up. If you have been honest about your business, and how much it makes, this is also going to motivate them to consider you as a potential client. As mentioned before, every merchant account provider wants to have as many customers as possible. The more that they have, the more money they are going to make. If your business is rocksolid, but you are selling services and products that are considered high risk, you will need to choose one of these companies above all of the others.
Choosing the best high risk credit card processing company doesn’t have to be difficult. They are becoming more numerous. There are some products, such as those related to guns and cannabis that are not high risk at all. They are just on this list, yet they sell viable products that people use all over the world today. If you happen to be in this category, start contacting these merchant accounts that will work with a business like yours. You need to submit multiple applications, and wait for feedback from all of them, before you make your final decision. These tips should show you how to avoid being denied by a merchant account after submitting an application. If you do operate a high risk business online, or even off-line, you can work with one of these merchant account providers that will not mind at all that you sell high risk items to the public.