Questions to Expect When Applying for a High Risk Merchant Account

Every merchant account provider wants to work with good, reliable, honest businesses. To ensure that the customized high risk merchant accounts being provided are in safe hands, the high risk merchant service provider analyzes the business model.They do so as the high risk merchant account provider becomes liable if the funds involved in transactions eventually become disputed.

Each credit card processor will have unique application criteria, but they are all molded from similar concepts. Some of the important questions that they would include in their application review for the business model of a high risk merchant include:-

What are you selling?

It is important that you give your prospective processor a good understanding of what you are selling. Many merchant account processors will not support high risk products like online gambling or blacklisted businesses.

How long has your organization you been in business?

A well-established business will be seen as less high risk than a startup. That is not to say that a startup will not be approved, but if you have a strong business history, this will help strengthen your application.

Can you provide financial statements?

This is asked to check on the financial liabilities a business may hold. If a business has a strong financial standing, it is most likely that the company will continue operating without mush hassles. Alternatively, if a business is cash strapped it is possible that it may not be able to continue operating smoothly

Are you currently processing credit cards?

This is asked to check on the chargebacks (disputes with customers) arising out of the business model employed. It is not something desirable and is something that should be promptly addressed.

How much money will you process per month?

Accurate and realistic projections need to be provided to the high risk merchant service provider. Be prepared with these projections before calling a prospective processor. The amount of money you process will impact rates.