How to Get Approved for A High-Risk Merchant Account

In the credit card processing world, some business industries and types are considered high risk. If you're planning to accept credit card payments but your business falls under the category of risky businesses, you will have to look for a high-risk merchant account provider. There are a handful of these providers specializing in processing credit card payments for businesses like yours. However, the biggest challenge for most businesses is getting approved for a merchant account. What is the best way to go about it? Take a look at this link for more information.

Gather all your financial statements. These are by far the best tools you can bring to the table when negotiating terms of approval with merchant account providers. Most providers will want to analyze your financial history and determine if your business is stable. From their perspective, they want to be sure that you will continue running operations well into the future. For start-ups with little financial history to show, approval can seem hard. However, if there is any success history or gains that you have made, bring them to the table as they could make a huge difference.  Please view this site for further details. 

Consider your business payment processing history. The more money that your business processes, and the fewer chargebacks you get, the stronger case you can build for approval. Bring your financial documents showing the number of credit card transactions, total transaction volume, the number of refunds and their total in volume and number of chargebacks and total chargeback volume. To eliminate or avoid the need for a security reserve, you will have to prove to the merchant account providers that your processing history is worth it.

Prepare a convincing merchant account cover letter. Drafting a letter requesting approval may seem obvious, but you need to take certain measures in preparing what you will write. First, consult relevant experts for guidance on what is needed for approval such as your sales representative. Considering that you are a high-risk business, you need to be very clear in what type of service or product you offer, address any concerns that your business may face, highlight the good and bad in your business operations and answer any questions before they are even raised.

Although it might seem challenging getting merchant account approval, consulting extensively with your sales representative is the best head start you can get. Ask questions about the process and listen to the responses given. It's always good to highlight your expectations and concerns in an honest way. High-risk merchant accounts come with different approval processes, with some more lenient than others. Try different merchants, specifically those that process payments for risky businesses like yours for a better chance of approval.