High risk merchant accounts: How do you apply for one?
How do you apply for high risk merchant accounts? In many ways you’ll find the experience similar to applying for a normal merchant account. We’ve put together a brief guide on what to expect during the application process for high risk merchant services, what you need to know, and how easy it is if you follow the steps precisely.
We would first say though, that the process in place to apply for high risk merchant accounts will take longer than applying for a normal merchant account, it is more complex in nature, and you will need a few more things to fall into place in order to be approved with the account.
What will I need to apply for a high risk merchant account?
There is a lot of paperwork that is vital to the application process for a high risk merchant account. These include:
- Shareholders’ certificate
- A certificate of company incorporation
- Clear chart showing the structure of your organisation
- Passport and utility bill copies for local directors and any shareholders with more than a 15% stake in the company
- License number and name of organisation that issues the license (if your business works in a sector where a license is a requirement)
- Processing history for the previous six months – including total value of transactions, volume of transactions, and chargeback percentage
How do I apply for a high risk merchant account?
An online application makes the process of seeking a high risk merchant account quite simple in how you action it. All you need to do is fill out an online application form, as well as find a service that allows you to accept card payments, a high risk payment processor. It is a short and simple process to input your application data, as long as you are fully prepared with the above documents and information. Once your business has been approved you can begin to process payments online or through mobile payment.
Because the risk assessment attached to a high risk merchant account application, each individual case will be taken on merit. There is no straightforward answer that covers all applications, and so you can expect a case-by-case approach to be taken. If and when you are accepted, you might also find that you are offered different specific features depending on your application, with different particulars included, or not included, within your merchant account once it is active.
What comes after the application?
Be ready for risk management experts looking at your application for a high risk merchant account to complete due diligence. The decision on whether your business qualifies for such an account will take some thought. Your business will also be verified as to whether it is on the terminated merchant file (TMF) list. If your history is not up to the standards set for acceptable chargeback thresholds on your credit card processing history, if you have lost a previous account due to a high chargeback ratio, or you have instances of fraud, you will have difficulty in gaining access to high risk merchant services.
What to consider when seeking a high risk merchant account?
It is important to do your research when looking for high risk merchant accounts that suit your business. Before choosing a future payment partner, look at a few aspects of each service and how they fit in with your own business model.
First, consider the customer service support and how fast the response is. You need access to expert support as quickly as possible if something bad happens to payments on your website or app. You need to ensure that all issues are addressed quickly and effectively. Second, look for high risk merchant services that provide you a tailored approach and flexibility depending on your own business model and specific needs. The security and technological aspects also must be top notch, ensuring that you are covered with security issues and have a payment service that is future proofed to maximise the potential of your business.
Signing up to high risk merchant accounts for your business could be the vital next step your business needs to take to become a big success over the coming years. Learning the best ways to look for the right partnership and understanding the processes of applying for a high risk merchant account will stand you in good stead.