In your quest to secure a merchant account to grow your business or startup, you are notified you’ve been declined. However, you have no idea why. Where do you go from here?
If this has happened to you, the following list should provide some clarity. There are many reasons why banks refuse to offer their merchant account services to companies. The sooner you discover why you’ve been declined, the sooner you can address the issue and move forward.
- Credit Issues
If your personal or business credit history is less than stellar, you will struggle to secure a merchant account. Many traditional providers will be hesitant to work with you because they feel the risk of fraud and chargebacks is simply too high. Your ability to secure a merchant account will also be affected if you have active collection accounts.
- Tax Liens
If your burdened with personal or business related tax liens, you will also encounter a roadblock. For any processor, tax liens are considered a high-risk situation and typically something they refuse to work around. Most processors will refuse to offer you their merchant account services until you’ve resolved liens.
- “High-risk” Business Type
Traditional providers are not equipped to deal with many business types and industries. In an effort to protect their interests, these “high-risk” merchants are turned away. Gaming, nutraceutical, credit repair, telecom, warranty, travel, restaurants, hotels, eBooks, electronics and airlines are just a few of the business types and industries providers consider high-risk.
- High Processing Volume
A typical … Read More