applied for a merchant account so that you can enjoy merchant services credit card processing,
application was declined. Now what?
First of all, stay calm.
Different financial institutions asses risk differently. For example, some people might consider
travel a “risk” but others may cater to that type of business.
company you applied to could just not be the right fit for your merchant
services credit card processing needs. You may
have to do a lot of research and visit several banks before finding the merchant
services credit card processing
company that is right for you. Another time saving option is to work with an
agent who has connections at several different types of banks. That way they can do the research and let you
know where you should apply.
you still are not able to find someone to provide merchant services credit card processing, then you may just need to
wait until you company has a more stable financial history. Although there are companies that specialize
in “high risk” merchant services credit
card processing, you should proceed with caution. Most of these merchant services credit card processing companies are not located
in the US and charge extremely high fees.
If you have no choice but to use
a high-risk processor, make sure you do not sign any type of binding
contract. In 6 months or a year you
should be able to prove that you are financially stable business and can
re-apply to some low risk processors.
While it is no easy task to
build a solid history if you can’t get approved, you should be able to do this by
going with a high risk processor. Just
make sure you prove you are financially solid as quickly as possible so you can
switch to a low risk processor. The best
way to do this is to prevent chargebacks at all costs. This will ensure your record is spotless when
you go to reapply.
In : merchant services credit card processing