LINKS

"
THE LOWEST RATES...
MOST BUSINESS TYPES...
WE SAY YES WHEN
OTHERS SAY NO...
7 DAY APPROVAL...
NO HIDDEN FEES...

"

 
 
1.800.393.3230
 
 


   

REASONS THAT LEAD TO YOUR HIGH RISK MERCHANT ACCOUNT APPLICATION BEING REJECTED

If you thought that you will surely get a merchant account, then you are very wrong. Some of the merchant account providers advertise that they have a 98% rate of approval or even higher, but that is because these companies do something called as a “Pre – Qualification” process on their customers before accepting their application for opening a merchant account, with them.

Practically, there are several reasons why your application for the merchant account can be rejected. If you are the knowledge of the reasons, before applying, then you can be more careful and can be saved from the frustration of going through the whole process without gaining anything. Without beating around the bush, listed below are few of the reasons for your merchant account application being rejected by the processing banks.

  • Poor Credit Report of the owner or Active Collection Accounts

If your business is not listed on any of the big stock exchanges, then the credit history of the chief member or the owner will have a big impact for the approval of the merchant account for your business. If the Owner’s Credit Report is not good or he has active collections, then the application for the merchant account will be rejected.

  • The Type of Business is not acceptable

Each processing bank has its own guidelines which decide which business they will issue the merchant accounts to and which they will not. Therefore, if your line of business is listed in the list of prohibited business types of the bank, then your application will be rejected without further consideration. The prohibited businesses mostly include adult businesses, companies which provide warranties for extended periods and businesses related to debt.

  • Active Tax Liens

If there is a tax lien that is active against the business or against the owner of the business then your application will be rejected without any more considerations.

  • Your business type does not support the average ticket size and the processing volume

The account providers do not tolerate any kind of fraud and therefore, there review the application for the merchant account very meticulously for any foul play. If they feel that the average ticket size and the processing volume given in your application do not jive with your line of business, your application will be rejected immediately. For example, if the coffee shop gave $500 as the average ticket size in their application then the application would probably be rejected.

  • Present on “MATCH” list

There is a list called as “The Member Alert to Control High Risk File” also known as MATCH which contains all the merchants who have cancelled or closed their merchant accounts due to violation of the service agreement. Any merchant who is listed on this list will not get a merchant account from any of the providers unless they are removed from the list. Getting delisted from “MATCH”, is not an easy task and may also require assistance from legal experts.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.