Why Was I Denied For A Merchant Account?

Obtaining a merchant account is tough for many startups, especially those in what are considered “high-risk” industries and locations. When a merchant bank or other acquiring company denies a merchant account, they usually have very specific reasons. When you are denied a merchant account, your options are limited. You may be able to obtain a merchant account from a company that specializes in providing them to high-risk businesses. You will pay higher fees, at least until your business is more established. You may end up not being able to accept credit or debit cards at all.

Another common reason you may be denied a merchant account involves the processor’s revenue model and small profit margins. If you don’t expect a lot of business or if you are in an industry where chargebacks are common, you may decide getting a merchant account isn’t worth the effort.

The good news is, a solution may be available. You may need to find a local partner, or pay somewhat more in fees. As your business becomes more established you can then negotiate more favorable terms. To learn more about reasons a merchant may be denied an account, what to do to improve your chances of being approved, and other topics related to payment acceptance, visit PayVisors, the business consulting website specializing in innovative solutions to help you meet your needs. Also, check out the publication at #UniPayGateway.