What’s Needed to Getting Approved for a High-Risk Merchant Account?
Introducing the term “High-Risk.”
Getting your business online has become one of the most common things nowadays. You need to understand that the Web is a powerful tool if used properly. Otherwise, it can lead to bankruptcy or even worse. Since there is an enormous amount of different types of businesses, there are some which are considered risky for many reasons.
One reason is that many others in that line of work conducted a lot of frauds and stole money from people; other is that there are a lot of chargebacks and so on. The main problem here is that you’re labelled as a high-risk merchant who can pose great problems for your further advancement and the desired increase in profit.
How to deal with High-risk label appropriately?
You need to take this issue seriously if you want to overcome it and continue with your plans. Being a high-risk merchant means that not many other business and companies are going to be willing to work with you. It’s just too much risk for them, and you need to make them trust you. One way to do just that is to set up a high-risk merchant account with some of the payment solutions available online. There are many of those, and you need to choose the one which suits your needs the best.
Beware of those merchant account providers because many of them charge fees upon sending the application and afterwards if yours is declined, they don’t refund those fees. It’s better for you and your business to inquire before you apply if there is a return of funds in the case you’re declined. When you set up a high-risk merchant account, then you will be able to resume your work and focus more on your further development.
What is needed to Get Approved?
When applying for a merchant account, you need to have in mind two things and those are:
1. Your Financial Statements
2. Your processing History
Gather as much information as you can about these two things, and you’re ready to go. They are the most crucial part when it comes to sending the application. When everything is ok with financial statements and processing history, then you will have almost 90% chance to be approved and get that merchant account.
Another secret weapon you should use without any hesitation is stating your business and write a cover letter. It’s pretty much the same as you’re applying for a job. The only difference is that you will be writing in the name of your whole company.
You need to have in mind that not many merchant account provider are going to approve your application if you struggle with a lot of chargebacks. Therefore, it is strongly suggested that you deal with those the best way you can. If you follow these steps, then you will be able to set up a merchant account without any problems.
What if you get declined?
First of all, this is something that just happens to all of us. You will then have to try out a few things. Write back to them stating that you’re serious about your business and that this means a lot to you because many of those merchant account providers do not fully read your application, thus replying with full description may change their mind.
If this doesn’t work, then you should consider choosing another company and apply there. There are more and more companies of this kind, and you will find the one that will approve your application.
In the End
This is one of the biggest problems when it comes to doing business online. But when you overcome it, you will then see how much opportunities there are which will ensure your further improvement.