HIGH RISK MERCHANT ACCOUNTS MADE EASY

2007-03-08 10:33:40

( Financial )



Getting merchant accounts will help a lot in increasing sales, because customers have the convenience of paying for purchases with credit cards or ordering online. However, businesses like travel agencies, online retailers, online auctions and casinos, telemarketing agencies and adult service providers may find it more challenging to get a merchant account service, because they are considered high risk merchants.

A high risk merchant owns a high-volume, high risk business. Banks are more cautious when dealing with a high risk merchant because there is a bigger risk for fraudulent credit card transactions with them. Banks also prefer to deal with merchants face-to-face instead of dealing with them by phone or online.

However, it does not mean you can't get a merchant account if you own a high-risk business. Several institutions offer high risk merchant accounts. You only have to be prepared and be a little patient to get approved for a high risk merchant account.

Getting approved for high risk merchant accounts

There are three things that banks consider in approving high risk merchant accounts. They will look at how long your business has been operating, your credit history and if you have other well-maintained merchant accounts. These three things indicate if you are reliable and credible, and if you understand how to manage credit card transactions. To increase the chances of getting approved for high risk merchant accounts, you should:

Be prepared to present an accurate and positive credit report. You can obtain your credit report from a credit reporting bureau or companies that provide merged credit reports. Settle any late payments, past bankruptcies or liens before asking for your report. This will create a favorable impression with your merchant account service.

Be upfront about any previous bankruptcies, judgments or liens with your merchant account service. Acknowledging past financial challenges will increase your credibility with them.

Be willing to comply with special restrictions or higher fees. It might be a bit inconvenient, but your effort will be worth it. Your customers will buy more if you provide them with as many payment options as possible.

If you have other well-maintained high risk merchant accounts, let your merchant account service know. This will greatly increase your chances of getting approved.

Choosing your merchant account service

Shop around for a merchant account service that best suits your needs. Talk to several different credit card processors and ask questions. Ask about the fees involved, what equipment is needed, installation costs, monthly minimum fees and chargeback fees. If you are an online merchant, ask your merchant account service about the software you have to obtain to operate your site effectively, such as web hosting, shopping carts and databases for filling orders.

You do not need to fret about getting approved for high risk merchant accounts. Just be prepared and the application process will hopefully be fast and smooth. Your investment of time and effort will definitely pay off in the long run.


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