My Business was Denied for a Merchant Account- What Now?
Being denied a merchant account can be a scary moment for you and your business. You’ve poured countless hours (not to mention money) into getting it off the ground and running- only to be told your merchant account application was rejected. Before you completely fall into panic mode- read on and rest assured that this isn’t the end of the road for your business, only a bump along the way.
First, realize that you aren’t the first person to be denied a merchant account for their business, and it isn’t a reflection of how “good” or “bad” your business is. Unfortunately, many people just don’t realize that accepting credit cards isn’t a “given”… until they’ve been rejected (your mom would tell you it’s “a privilege… like getting a driver’s license”).
Here are some helpful tips to follow to ensure you won’t be denied the second time around.
1. Understand WHY you were denied
This seems obvious, but many business owners don’t take the time to realize why they were denied, but instead continue applying with numerous other banks- only to be rejected again and again. There are many reasons why a bank may decline your application; an usual marketing practice, a mistake in information, lack of documentation, Better Business Bureau (BBB) complaint record, a couple questionable Google results. These are just some of the reasons you may have been denied. It’s important to figure out why you were declined so you can then take steps to adjust things and move forward.
2. If needed, slightly modify your business model
A tweak in payment/billing procedure, or slight changes to your website graphics/verbiage may help you avoid being classified as “high-risk”. Make sure you understand what it is that makes businesses obtain the label of “high-risk”.
3. If you can, try to have a cash reserve for your business
Underwriters perceive business owners with a low account balance to be higher risk. They’re concerned that if chargebacks increase, the business won’t have sufficient funds to refund those charges.
4. Don’t be afraid to ask for help!
You’re an entrepreneur. Focus on what you do best – growing your business. You don’t need to be an expert in the complex world of merchant accounts.
Getting you set up with a merchant account IS our business. We work with every bank in North America (and many offshore) that handle “high risk” business models. Those resources alone will ensure you’re taken care of.
But past that, we will review your application and do all of the legwork so you don’t have to.
In a quick 15 minute consultation, one of our Certified Payment Specialists will give you insight on your situation & a game plan to get your merchant account approved.
Click here to schedule a 15 minute consultation or just give us a call 800.805.4949