Denied for a Merchant Services Account? You Could Be at ‘High Risk’

When a company doesn’t fulfill the requirements for a low-risk merchant account, a high-risk alternative is often the best option in view. Companies with high chargeback rates, poor credit, or reputational issues can use these accounts to process credit and debit transactions, but getting one is far from guaranteed. If you make a few errors on your application, your business may not accept your clients’ payment methods. Here is where an e-Check merchant account comes to your rescue.

The Need for an E-check Merchants Account

You’ll need a merchant service account if you’re in business today. Whatever the case may be. These types of accounts enable your firm to accept non-cash payments. However, you have options if your firm has been known as a high-risk institution and a merchant services account has been denied.

Find Out Where Your Company Lacks

There could be a variety of reasons why a merchant services account was turned down for your enterprise. You need to know why to take corrective action if possible and better understand your choices if not. One or more of the following causes, or something completely unrelated, could be the cause.

Issues With Licensing

A business license is typically required to approve a merchant account. Many businesses may get by with just a business license. Still, some internet businesses, such as pharmacies and gambling sites, require more stringent licenses that limit where they can operate and what they can sell.
If your business cannot obtain these permits, you may not be eligible for a high-risk merchant account

Merchant Fraud Is a Possibility

High-risk account providers, by definition, must be more careful about merchant fraud than their low-risk counterparts. Consequently, if your application suggests that your business might engage in illegal activity, you may be denied a merchant account.

Excessive Chargebacks

High-risk accounts typically give industries that deal with a lot of contested transactions more leeway. The same is true for companies that provide annual memberships or automated repeating billings, increasing the time a company is subject to chargebacks. However, some service providers would not go beyond a certain point. Avoiding excessive chargebacks can improve your chances of getting your application approved.

High Rates of Decline

When a consumer shops with you, their bank may reject transactions owing to insufficient information, anti-fraud policies, and other factors. While this issue is sometimes unavoidable, it can have significant consequences if it occurs frequently enough. In addition, some merchant account providers may refuse to do business with you on the refusal of more than 10% of your transactions.

Look for a High-Risk Merchant Account Processor

Processing partners are accessible for companies of all sizes and types. Some of them may even be willing to assist your company in resuming credit cards and other payment processing operations. Additionally, these specific high-risk payment processors are willing to work with you to get your business accepted if you explain what is going on with your firm.
If you need to know more about E-check Gateway Payment, get in touch with Premium Payments at (954)-934-9004 or (305)-747-5855.

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