Why you should get a high risk merchant account
Considering that you’ve read this far, it’s very likely that you think your business is indeed
a high risk merchant, and that you probably need a high risk account to go with it.
Now that we know a bit more about this type of account, and what it entails, let’s briefly go over why you should get one.
The fundamental reason you should get a high risk merchant account from a high risk processor, is because they will accept you, while others won’t.
You may be thinking to yourself, “But why not just use the typical processors like Stripe, Square and Braintree? They seem to accept high risk processors often.”
Actually, this statement is only true up to a certain point, and can be dangerous for your business. They may approve your high risk account initially, because they use automated underwriting, but they’ll eventually terminate it within 1 to 3 months.
Then, to add insult to injury, they will probably hold your funds for up to 6 months, and this is even if you have low chargebacks!
Defining this process as pointless is an understatement.
The problems are evident, and the benefits are clear. If you want to receive a higher level of fraud protection and more security, having a high risk account can give you and your bank reassurance.
Knowing that you are high risk will allow the payment provider to plan in advance by having stronger card authentication measures, and heavily monitor transactions for suspicious activity.
In short, these are just a few good reasons to get a high risk merchant account.
How to increase your chances of getting approved
Hopefully we’ve convinced you, and if you already are, the next crucial step to take after applying is getting approved.
By now, you may be asking yourself, “How long does it take to set up a high risk merchant account?” This can be tricky, but like with every journey, it starts with a few first steps…
When submitting your application, you want to make sure that you include relevant details, a cover letter, and anything that can demonstrate your trustworthiness. This will separate you from other applications right from the get go, but it doesn’t end there.
Remember, what you include in your application matters.
Here’s what you should include:
- Processing history
This is the best piece of information that you can provide as evidence that you are worth their time. As they say “the proof is in the pudding”, and bottomline, underwriters want and need evidence that you run a tight ship. Show that you have a good chargeback history, and this could mean not many, or that you took steps to fix the problem and now have reduced the instances of it.
- Expertise
Show that you have expertise in your specific industry by mentioning years of experience, and any awards or good results you have achieved.
- Sales
Have a good, consistent sales volume. “Good” can vary depending on the underwriter’s standards, but you should consider weighing the risk and reward for the bank. If you typically bring in $100k/month, having slightly higher chargebacks could be fine, but low amounts of revenue per month could make your application riskier.
- Consistency
Make sure that when you do your application, you present a complete and consistent application package. Ensure that the application is fully filled out, and that you include corporate documents, bank statements and vendor agreements.
You should also include other details like addresses, phone numbers, and names of the owners which are shown consistently across all documents. You should also make sure that you add a link to your website, and that it is in compliance with bank regulations in your vertical.
- Awareness of risk
Within your cover letter, it is also vital that you demonstrate to the underwriter that you care about risk, and that you are doing something about it. Explain that you are using tools to prevent fraud and are monitoring vigilantly.
In terms of chargebacks, which increases in likelihood if you have a long fulfillment duration, you should also mention that you have a vendor to respond to your chargebacks and that you are using Ethoca and Verifi alerts.
In short, these components are crucial to improving your chances of getting approved, and if it seems complicated, you’re not wrong.
It’s a tricky process riddled with missteps, and waiting in limbo… However, there is a better way.
This is where Helios Payments steps in.
We’re the simple and sound option you were looking for all along, and when you work with a high-risk agency like us, you can dramatically increase your chances, and get approved for a higher monthly sales volume.
Not to mention, we’re an agency that truly understands the whole process, not just part of it…
So when it comes to banks, restrictions, and requirements, we’ve got you covered.
Ready to take the next step?
Click here to fast track your approval and grow your business…