Business owners will not mind the phrase high-risk merchant account until they decide to venture into this kind of business or until a business is identified as such. Many entrepreneurs might not even realize they picked a high-risk industry when they decided to start a business.
There are a variety of reasons a business is considered high risk such as a high chargeback rate. This may come as a surprise but things like recurring payments lead to chargebacks.
While being tagged high-risk is not an ideal situation, several reputable payment processing companies will help you overcome the challenges that high-risk businesses face. If you’re not sure how to get a high-risk merchant account, our payment processing experts are here to guide you through the process.
High-Risk Merchant Account Process
In order to apply for a merchant account, it’s important to find a reliable merchant services provider you can trust that specializes in high-risk industries. They will guide you through the process, ensuring your business adheres to the state and federal laws and has the appropriate documents for the best chance of approval.
In most cases, high-risk payment processors will require merchants to submit the following documents:
- Application form
- Resume/CV
- Valid identification
- Utility bill
- Marketing business plan
- Supporting document such as processing history (3 months)
- Processing bank
- Personal bank statement (3 months)
- Reference letter from the merchant’s personal bank
- Supplier agreements
- Memorandum or articles of association
- Processing history indicating the total number of transactions, total volume, and chargeback percentage (6 months)
- License number and name of the organization that issued the license (if applicable)
- Screenshot of official website for compliance requirements
High-Risk Merchant Account Approval Process
Once your application and supporting documents have been submitted, experts conduct a thorough examination of your credit card processing history, which can greatly impact whether or not your application is approved.
Other factors taken into consideration include chargeback rate, previous account suspensions or terminations, and recorded incidents of fraud, all of which definitely decrease the chances of approval.
With the help of a reliable payment processing partner who has relationships with numerous banks and ISOs, you have a higher chance of getting a high-risk merchant account approved.
Contact us to learn more about the services we offer at First Card Payments and save 25% when you sign up for a new merchant account today.
Related Reading:
How to Get a High-Risk Merchant Account in Florida
How to Get a High-Risk Merchant Account in Texas
Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.