So you’ve just been terminated from your current merchant account provider. The reasoning behind this could be endless – weeks of chargebacks or even the fact that your current merchant account provider no longer takes your business model. Whatever the case, NOT taking credit cards is NOT an option. So what can you do? Don’t panic. There are a handful of highly respectable merchant account providers that specialize in high-risk accounts, including Total-Apps. A large percentage of our merchants have been terminated at one time, but this does not mean the end of the world. Here’s what you need to know to make the best of the situation and get up and running as soon as possible.
Learn Why the Account Was Shut Down
The best thing you can do is call your current provider and understand why the account was terminated. There’s a very good chance their regulations and policies have changed given your current business model. If the reasoning to close your account revolved around chargebacks or transaction issues, you’ll want to find out what the exact issue was. Learn the numbers. What was your chargeback ratio? How many transactions were fraudulent?
Once you obtain this information, make sure you understand how you can explain your situation to a merchant account provider.
Prepare Your Documents
Once you have a terminated account under your belt, opening a merchant account won’t be as easy as it was the first time around. You’ll need to gather the standard documents as well as the following:
-Previous Processing Statements
-Current Bank Statements
-Chargeback Reduction Plan (If chargebacks were the issue)
It’s important to realize that underwriting may ask for additional documents. If this is the case, you need to roll with it. Now is not the time to push back against the team deciding on whether or not they feel comfortable taking on your business.
Find a High-Risk Provider & Be Open
Now is your time to reach out to high-risk providers. When doing so, it’s extremely important to be upfront about your termination and not sugarcoat the truth. Be open about your previous processor’s reasons for termination. Hiding the truth won’t do either party any good. It will waste your time, especially if the provider is ultimately unable to provide you with a solution.
Have you been terminated and been able to find a solution? What worked for you? What didn’t? What tips do you have for those merchants looking for a new solution due to termination?