What should you do for your merchant application not to be denied?

To open a merchant account is not an easy task for any business especially for a startup one. Sometimes it can take them a lot of time or higher processing fees can be applied. What are the reasons of that and what things do you need to take into consideration while opening a merchant account in order to cope with the task successfully?

Revenue model (of the processor). Sometimes processors do not want to open merchant accounts for startup businesses with low processing volumes while their earnings are not going to be significant enough. Usually processor earns 1 percent of the total processed transactions plus a subscription fee.

Location risk. The location of business is very important while there are zones which are considered to be high risk due to the high level of fraud. The merchant account applications of the merchants who are located at such zones are more likely to be rejected.

Business nature risk. The nature of business plays an important role because there are some spheres (like gambling, porn) where the level of chargebacks is very high. That’s why many acquirers will refuse to work with such companies or they will require a significant premium.

The original article is available at payvisors.com