If your business accepts debit and credit card payments, a merchant account is essential for your operations. Since this account is crucial to your affairs, you may find it challenging to obtain it.
Financial institutions and banking organizations can easily label your business as high-risk. This business category imposes an array of various challenges and complications associated with having this type of account.
However, you can make things a bit easier by choosing the right processing service provider. Many of these service providers claim to offer guaranteed high-risk merchant account instant approval. To determine the best option for your payment processing needs, let’s get into what instant approval means and how to get it. Also, check
High-risk businesses
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Companies can be labeled high risk for many different reasons. No matter the reasons, the most important thing is that payment processing service providers find such businesses risky in terms of providing their card processing services. However, some traditional financial companies are willing to offer their services to high-risk businesses at a higher fee.
The high-risk industries list includes:
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E-commerce
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Retails
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Gambling and gaming
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Health and wellness
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Forex
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Tobacco and e-cigarettes
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Legal services
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Travel services
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Adult products/services
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Dating services
If your business comes from any of these industries, you might be having a problem with getting instant approval for a high-risk merchant account. That is why it is vital to understand what instant approval means to apply for these services.
What is instant approval?
Many businesses have problems finding the right, trustworthy companies that offer instant approval for a high-risk merchant account. So much that many of these business owners started thinking that it might be just a myth and that there is no such thing.
That is because instant approval isn’t actually instant, and it usually takes quite a long time, more than three business days, to obtain final approval for a high-risk business. Low-risk businesses, on the other hand, get approved in less than two days.
This is because payment processors need to do far more extensive research into the actions, operations, and credit history of both the business owner and the business. It will also require significantly more documentation to complete the process. Every instant approval for your high-risk merchant account is a lengthy process that includes two steps:
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Step 1 – your merchant account provider must approve your account.
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Step 2 – your backend payment processor or the acquiring bank must approve your account as they will process your payments and underwrite your account.
It is the second step that brings all the delays and complications on board. Every payment processor has its way of assessing risks associated with extending its services to a business they deem as a high risk. That is why they have all these requirements you’ll need to go through to get approval.
Even if your merchant account provider is ready to approve you, your processor may still refuse you. Fortunately for you, instant approval isn’t a myth, thanks to a range of providers who specialize in approving high-risk accounts. Let’s see what you can do to expedite the process.
How to expedite a high-risk merchant account approval process
It is quite possible to accelerate the process of approval. Start by finding a trusted and authoritative merchant account provider that has experience with high-risk processing. Their knowledge and proven track records will help accelerate obtaining the necessary documents, signing up, and getting approved.
Since high-risk businesses must provide much more information, you can significantly speed things up by submitting all the necessary information with your initial applications. Here is a shortlist of the essential documents you may need to provide:
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Completed merchant account application
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CV of business owner
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Passport or ID photo
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Business plan
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Personal utility bill to confirm the address
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Processing statements not older than three months
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Copies of your personal and business account and banking statements and supplier’s agreements
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Personal reference letter from your bank/financial institution
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Articles of incorporation and association
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Screenshots of your e-commerce website design pages
You can also additionally contribute to getting approved by being honest with your merchant providers about every aspect of your business operations. The more they know about you and your business, the easier it will be to get your high-risk merchant account approved. Even if your track record is less-than-perfect, you may still be eligible.
Conclusion
Instant approval isn’t a myth, it’s real, but it takes quite a few steps to get there. The application process includes many steps and requirements that may make it seem redundant, but it is possible to get there and get approved.
Make your business operations and processes transparent to your merchant provider, and you should get the payment processing service and fraud protection you need to take your business to the next level.
