Improve Your Chance of Getting a Merchant Account
The ability to accept credit cards improves your business’s ability to collect, particularly if you do business over the Internet. In order for your business to accept credit cards, you must get a merchant account with a bank or independent service organization (ISO), which can be difficult.
Mostly, they’re concerned about risk. Here are some of the signals that will make the bank think that your business is too risky to be accepted.
How old is your business? Banks like to back businesses that are established and have a feel for your business environment. Talk to your banker. If your business is more than two years old, the chance of being accepted by your bank instead of an ISO (which will charge you higher fees) is much better.
Do you have a clean credit history? If not, talk to a credit reporting bureau; explain that your credit issues have been fixed; and request that they be removed from your report.
Have you had previous merchant accounts? If you have, your bank or ISO will assume that you will deal responsibly with your new account and that you are lower risk.
What is the nature of your business? If you deal with scum-of-the-earth customers, your chargeback rate, the frequency with which customers will refuse payment at the expense of the bank, will probably be higher. Banks, if they accept you at all, will charge you higher fees for their risk.
Is the purchaser present? Businesses that charge over the phone or the Internet and can’t literally swipe the purchaser’s card are higher risk and will be judged accordingly.
Comments
Huh? Go to PayPal merchant services and you can be processing credit cards before the end of the day.
A quick note on what tony jones has posted though. This blog explains about merchant account but it gives focus on the risk aspect of a business. Anyone can easily apply for a Paypal merchant account to process credit cards in no time, but with a high risk merchant account application, things are a little different. The higher the risk, the higher the expenses. But more often than not, a merchant gets approved as long as he fulfills the requirements. For example, his business must not have been involved in fraudulent activities before.
Hello,
My name is Laima, I’m manager in a company which is purchasing cigarettes on-line to USA.
My question is: could you provide us with checks and credit card processing services?
We would be glad to collaborate with you in the future.
Thank you
Hello,
My name is Laima, I’m manager in a company which is purchasing cigarettes on-line to USA.
My question is: could you provide us with checks and credit card processing services?
We would be glad to collaborate with you in the future.
Thank you
Hello,
My name is Laima, I’m manager in a company which is purchasing cigarettes on-line to USA.
My question is: could you provide us with checks and credit card processing services?
We would be glad to collaborate with you in the future.
Thank you