If you’ve been denied an account by a merchant processing service provider, you may be wondering why and what to do about it. Oftentimes certain businesses are declined because they are considered high risk, like those in online nutraceutical, kratom, or peptides sales, travel-related industries, and certain tech industries.
Understanding the challenges associated with applying as a high-risk business with online merchant service providers can help you find the necessary solutions to overcome the obstacles and get your account up and running.
What Do I Need to Open a Merchant Account?
One of the biggest hurdles you will face when submitting an application for high-risk merchant processing services is that you will need more documentation than a traditional merchant account. Preparing the required documents ahead of time will expedite the process and increase the chances the merchant processing service provider will accept you.
You will need to verify the business owner’s identity which includes any owner who owns 25% or more of the company. A government-issued ID or scanned passport and proof of address, like a utility bill, will be required.
In addition, expect to provide:
- A scanned copy of your valid driver’s license.
- 3 months’ worth of processing statements providing you aren’t new and have been processing already. The statements are required to be attached to the bank account you are using on your application.
- New business applicants must instead show 3 months of personal checking statements and savings account information is helpful as well.
- A check with company name that’s been voided. A starter check is not acceptable.
- If you don’t have a check showing your company’s name on it yet, you can submit an official bank letter with bank letterhead. The letter must include your company name, account number, and routing information.
- A business license or articles of incorporation will also be required.
Online merchant service providers may request you to fill out a form of Beneficial Ownership in order to disclose all individuals who have ownership or control of your business. This requirement is standard under United States and compliance of global finance regulations.
Additional Business Information Required for Opening a Merchant Account
Once you have prepared the information above for the merchant processing service provider you are applying for, other documentation may be required as well. Be ready to show:
- If you are requesting a considerable amount of money ($70,000 or more), you will typically need to provide 2 years’ worth of tax returns.
- In the event you have two or more merchant accounts from the same bank, you will most likely have to include statements from the other account or accounts as well.
- Proof of your business’ location may need to be confirmed through a utility bill.
Final Checklist for Opening a Merchant Account Successfully
To avoid any delays when applying for a high-risk account through a merchant processing service provider, you will want to go back over the information you are providing. Double-check to ensure all required documents are scanned and are clear and easy to read and are less in size than 10MB. Be certain you use PDF format and that all documents are labeled properly. Also, include the name of your business whenever possible.
FAQ
Why do some businesses get declined for a merchant account?
Businesses are often declined due to risk factors such as high chargeback potential, regulatory concerns, or operating in restricted categories. Financial history, processing volume, and business model transparency also play a role in approval decisions.
How long does it take to get approved for a merchant account?
Approval timelines can vary depending on the complexity of the application. Standard accounts may be approved within a few days, while high-risk applications can take longer due to additional underwriting and document verification.
Do startups have a harder time getting approved?
New businesses may face more scrutiny because they lack processing history. However, providing complete financial documentation and a clear business model can improve approval chances.
What is considered a high-risk business for payment processing?
High-risk businesses typically include those with higher refund rates, subscription models, international transactions, or products that fall under stricter regulations. Industries like travel services, supplements, and certain online sales categories are commonly reviewed more closely.
Can I apply again after being declined?
Yes, you can reapply after addressing the reasons for the initial decline. Updating documentation, improving financial stability, or working with a provider that supports higher-risk accounts can increase the likelihood of approval.
Apply for a High-Risk Account with a Merchant Processing Service Provider Today
If you are searching for reputable high-risk online merchant service providers, look no further. Beyond Bancard specializes in accounts that accommodate high-risk businesses such as kratom sales, peptide sales, merchant accounts for travel companies, and others who are considered risky. Let us assist you in a simple step-by-step process to get you up and running. Contact us at (844) 365-3050.
