About 30% of the calls we receive are with new merchants that have one common question:
“Will my credit score affect the application for a merchant account?”
It’s a tricky question. In short: yes. Your credit history is reviewed by the underwriting team. This is because opening up a merchant account is a line of credit. The provider is taking some risk for you so they need to make sure all of their bases are covered.
If you have previous processing history…
So you’re ready to open a merchant account for your business and you’re being labeled as “high risk.” Why? What does this even mean? You know your business is legit. So why the push back?
First, what type of businesses are labeled as high risk?
Here are a few examples:
Vape / eCig
Sexual Oriented / Pornographic Websites
Etc. Etc. Etc.
The list goes on. The fact that you are labeled as high risk makes for a few additional steps in…
Fraudsters have really made things more difficult for everyone when it comes to getting a merchant account. In the past, these shady folks have set up shell merchant accounts that are made to look completely above board, but they are actually selling counterfeits or running credit card payments without ever sending the “customer” any goods. Credit card companies assume a lot of risk when taking on new businesses and obviously want to avoid these kinds of set ups. After…
One of the common confusions that we get from clients is that they do not understand they are APPLYING for a merchant account. With the instant approval of services such as PayPal, Intuit, and Square, we can understand the origins of the confusion. So why are you APPLYING when you decide to open a full merchant account?
There are a couple of factors.
First, there are strict regulations that come from Visa and Mastercard when it comes to the business models…
So you’re a brand new business, huh? Let’s say you opened up your very own cake shop. You sell the best cakes in the entire city! You’re off to a good start. But you realize you need to open a merchant account to take credit card payments from your customers. It makes sense. This could (will) lead to an increase in sales.
But potential merchant account providers need bank statements and you are a brand new business. So what do…