Not only the merchants but also the merchant account providers are insecure when they scrutinize an application of a high-risk merchant. It can be risky for an acquiring bank to offer merchant account services to a high-risk business. The reason is already known to use all because a risky business has many threats revolving around it.
Due to advanced technology and fraud detection tools, it has become easy to approve a merchant account application. But the business owner needs to have some factors in his favor, and submission of proper documents is necessary.
Read below the factors that online merchant account providers look for while going through its application.
Healthy cash flow
Every business needs to maintain a good cash flow, whether it is applying for a business account. It is necessary because the availability of cash is a sign of a flourishing and stable business. A healthy cash flow is a minor factor but is essential for acquirers.
Why do merchant account providers like good cash flow in business?
- Smooth cash flow indicates the financial stability of a business. Even if a merchant wants to apply for a small business loan, cash flow is the first thing a bank notices.
- It shows that a merchant pays its employees on time. Happy employees are the first condition of satisfied customers. When they work happily, a business grows, and customer satisfaction occurs naturally.
- Good cash flow also indicates a good credit score; whether an individual or a business, there is no need to explain the significance of credit rating in obtaining financial products.
- Promising future growth can be seen in a good cash flow. Every bank and financial institution loves companies with futuristic finances.
Impressive chargeback management record
As you know, the chargeback of a business should be at most 1%. If a company successfully maintains its chargeback ratio, approval happens immediately. When it comes to a high-risk business, the chargeback is the biggest concern. Online merchant account banks and even global payment gateway providers do not work with such commercial organizations.
Why do lower chargebacks help get instant merchant approval?
- Lower chargebacks show that a merchant is managing the business successfully. It is considered a great skill in high-risk industries if a merchant successfully manages his transactions.
- Lower chargebacks also show customer satisfaction and good future company growth. A business that has the caliber to satisfy customers always impresses acquirers.
- It shows the presence of reliable fraud detection tools as friendly fraud also happens in the name of chargebacks. With the help of tools like credit card verification, address verification, card updater, and blacklisting, it is possible to detect fraud.
Be honest and transparent and give all business-related information
The high-risk merchant account banks are particular about the documents and details of a business they need. If you have a business and you are looking forward to getting approval, it is evident to pay attention to the following points.
- Provide all business-related information and data, whether it is bank statements, records of pending loans, or anything else.
- In case of missing details, the application is considered incomplete, and rejection can be the first thing to happen.
- Be careful while handling your tax returns because that is always the most crucial part of a business. Missing a tax-related detail not only gets rejection but is also considered illegal.
Established brands or businesses, even a start-up, gets easy approval
The struggle to get an international merchant account is not much for commercial entities with a strong market presence. Many relatable factors relate to this one factor; you can understand this only after learning about the following points.
- A company with a good image and dominating presence in the market shows its longevity. Acquiring banks always look for such merchants.
- A renowned brand indicates that it gives intense competition to its counterparts. It is an excellent point to impress an acquirer.
- Strong establishment shows good business management skills and financial stability, making a promising mix for approval.
Why Webpays makes a reliable choice as a merchant account provider?
Webpays is a renowned as well as reliable online merchant account provider. You can read the reasons below why it is among the best choice.
- The provider has a vast and rich network with acquiring banks all across the world. It can get you connected to the best merchant account-acquiring banks.
- It is an expert in high-risk merchant account solutions with an experience of years. It serves the business types such as IPTV, online casinos, gaming, adult entertainment, forex, and fantasy sports.
- The provider also accepts applications with a low credit score. It suggests the best ways to reduce chargebacks before applying to an offshore merchant account.
The above points clearly explain that to get approval on a high-risk merchant account, one needs to have the above factors in favor. Today, with technology’s help, procedures can be transparent. Also, businesses can play safe while protecting their payment procedures from fraud and other risks. All high-risk merchants can quickly get approval smoothly if they invest a little hard work in completing the formalities. With an insight into the above factors, you can simplify the application process.
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