The Possibility of the Rejection of Your Offshore Merchant Account Application

In some situations, your “Merchant Account “request may be rejected. This article deals with the possibility of your account application being rejected. So if you have applied for an account and think that you will be provided with the account then you may be wrong. Many providers claim that the rate of approval of Merchant Accounts is ninety eight percent or ninety nine percent with them. However this does not mean that all the applications are approved. They accept the application only after a “pre-qualification “process.

There are many reasons which will lead to the rejection of the accounts. To avoid your application being rejected, you should have a good knowledge on the reasons of rejection of merchant accounts and how to avoid them. This will help you in getting a Merchant account. Some of the reasons that may lead to the non- approval of the merchant accounts are as follows:

Poor Report of Credit by the Owner / Collection Active Accounts:

The history of credit of the applicant is going to have an impact on the approval of merchant account if the business of the applicant is not in the list of large stock exchanges. A poor history of credit or the presence of active collections can lead to the rejection of the merchant accounts.

Business of the Applicant:

 Each bank that processes the Merchant account follows certain guidelines which are the deciding factors in the approval of merchant accounts by the particular bank. There are a few types of business that are prohibited according to the bank. So make sure that the business you are in does not belong to the category of prohibited businesses. Prohibited businesses will result in the immediate cancellation of the application. The prohibited businesses include: debt related businesses, adult businesses and the organisations that provide extended warranties.

Tax Lines:

In situations where the tax lien is present against the applicant or his business, this can lead to the rejection of your accounts application.

The Fact Whether the Business of the Applicant Supports the Process Volume and Average Ticket-size:

All types of fraud are barriers in the approval of merchant account. A meticulous review of the application is done by them. This is done to find out if any type of foul play is involved. The average size and process volume are important and the information given regarding them has to be jived with the business line of the applicant. Avoid errors in this category.

Presence on the –Match List-:

The term MATCH list refers to the “The Member Alert to Control High Risk File” list. This list consists of the names of merchants whose merchant accounts have been closed as a result of the service agreement violations. If the name of an applicant is present in the list, then he cannot be provided with an account. To be eligible for an account their name should be deleted from this list. However this is not very easy and may require help from professionals. 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.