If you think getting approved for a merchant account is easy, think again. Merchants can attest to this when I say that each application goes through a needle eye before it gets approved. A lot of reviewing and validation should be done by your processor in order to issue you the merchant account you have been applying for so long. What do you need to ensure your application gets approved, you may ask.
Here are a few steps or tips we have compiled that might help you get that merchant account for your business.
Make sure you have selected the appropriate merchant account service for your business. One way to get approved is by evaluating what type of service you want to get. Imagine how you want your business to operate. Decide whether you want your payment to be made online or through a mail or telephone option.
Search for credit card processors with services that will ultimately suit your needs. Don?t be afraid to be picky when it comes to choosing the right credit card processor. If you settle for anything less, you will be the first one to be plagued by payment problems in the end. Once you have found your potential processor, be attentive and ask as many questions as you can. This will be the only way to know whether the bank can adjust and cater to your business needs, as well as for them to know what your dreams and goals are when it comes to operating your business.
Ensure a positive credit review from past bank processors. Before applying for another account, make sure you have settled all outstanding bills and fees with your previous processors. Having unpaid dues, past bankruptcies, and late payments from your credit report will only lead you into having a very slim chance of getting approved. Make your credit report as clean and spotless as possible because having a good credit rating will ultimately make a positive and favorable impression with a potential processor.
Evaluate your credit risk. Make sure you know the nature of your industry and how much risk it would bring. This is probably one of the top reasons why most merchant accounts get rejected by banks. If you know your industry is a high risk merchant, search for banks that specialize in serving high risk businesses like you. These banks have tailored merchant accounts made just for your industry. As for most banks, they are very cautious when it comes to approving high risk businesses as these will most probably have many chargebacks that may be very problematic in the long run.
Be honest. If you can?t have a clean record, then the least you can do is be honest about it. Admit you have had past lapses with your previous bank processors. Aside from it being the noble thing to do, it would also increase your credibility and spare you one less barrier from getting that approval.
Now, applying for a merchant account can be less of an endeavor. Follow our basic tips if you wish to ensure that approval and start earning with your merchant account.