|June 14th, 2018|
Who should read this?
a) Merchants, those have faced rejection for their merchant account applications once or more.
b) Startup Business owners who are looking forward to applying for it.
c) Businesses that are already accepting card payments but are not satisfied with the profit share they are getting due to a high processing fee.
d) Those who want to rise high on the business ladder.
Who can skip?
a) People those who are not running a business for money.
Performance and popularity of plastic money in the modern business scenario is not hidden even from a child. Most of the American businesses irrespective of their sizes and industries preferably head for accepting payments from their clients through cards. As you may already know, the acceptance of credit cards is only possible only after opening a merchant account. This goes for both retail and online store.
Now, some of you may think that why there is so much buzz about opening a merchant account. Believe me friend, it is so because the process is nowhere close to easy. You will, of course, be suggested to fill up form for opening a merchant account. Even this sounds easy, right? Unfortunately, it is even easier for the major issuing bank to check you on few parameters and thereafter reject your application.
Now what? Will you not be able to realize your dream to become a business tycoon ever? Don’t jump to any conclusion. There are other ways that are fast and better, merchants would have to pay a small fee for it, but then it is completely worth for taking up smooth and secure payment processing solutions. Before we go any further let us understand what bank has to say for the rejected merchant account applications.
Faced rejection for your merchant account application? Let some light fall on issuing bank’s perspective
Needless to say that declines coming from banks or merchant processors are far more than demotivating and depressing. Small and medium-sized businesses those are already in the dearth of resources find it bit more than overwhelming to spend time and resources on starting with the process repeatedly, right from the scratch.
Don’t you think knowing the bank’s criteria for accepting or denying the merchant account application will extend help to you and scores of others? We have made an attempt to make you look at the situation from another side of the table. Banks or merchant processors see you, for that matter any business applying for a merchant account as a risk. Before they provide you with merchant processing capabilities, they are keen to assess your business details to ensure you will not be a financial risk or liability for them in future.
There are many frauds and incapable companies that go bankrupt by bringing financial risks to surface in many forms including huge chargeback. Hence, it is completely justified on the part of the processors and the banks to do their homework before entering into a partnership.
How can you look genuine and eligible before banks?
Hope you have taken the point from the above lines. It is clear that you have to protect your business in the most presentable way before banks and merchant processors, whomsoever you are trying to appeal.
When you know they are doing their homework, you should also be prepared enough to face the usual concerns and questions. Take care of the under mentioned points and boost your business with the power of plastic money.
1) Your credit history should not appear to be a red flag- Personal credit history of the signer is not only checked but also it determines whether the decision will be in your favor or against. You can utilize good credit history of multiple people those who have some percentage of ownership or hold a significant title in your LLC or corporation.
2) No for high-risk business- Don’t take it personally- If you are dealing in a particular commodity you may be tagged as a high-risk business. But don’t worry you are not alone; instead, there are several other industries with whom you can share your pain with. Prohibited businesses by banks can avail credit card processing services by paying higher processing fees to the processor.
3) Projected processing volumes should match with the type of your business- “Excess of everything is bad” as the old proverb goes and expected volumes in your business are no exception to it. It depends on both your past processing and expected future growth. Projecting any figure that is beyond the norms of your industry may weaken your eligibility for approval.
Don’t get too excited and make sure you evaluate your business processing amounts on realistic grounds for next 5-6 months.
4) Tie up the loose ends first- There is a blacklist of the processors too, by the name of TMF match list. Make sure your business is not anywhere in this list. The communication within the banking system is very strong and your presence on this list can be a big hindrance in seeking approval.
It is duly important to ensure that you don’t burn the old bridges. Please ensure that the previous payments towards the previous provider are paid before expecting a yes from new processor.
The above-given points are discussed here with intent to keep you better prepared for your first or next time you apply for merchant account services. Going through these and adhering to them would help you get through the approval process quite conveniently.
Want to give a kick-start to your startup firm or step into the online business arena? You need proper professional assistance to avoid frustration, loss of time and energy for starting merchant services setup.