What to do if your merchant services credit card processing account is declined

Posted by Leigh Jones on Friday, May 30, 2014 Under: merchant services credit card processing

You applied for a merchant account so that you can enjoy merchant services credit card processing, but your 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. 

The 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. 

If 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.

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