For many companies or start-ups, getting credit card processing is a must-have in order for the business to run and to be successful. However, for some, it can be difficult to be approved for credit card processing for reasons that we will cover in this blog post!
At Nationwide, we are a high-risk merchant account that works with businesses who may have a hard time getting approved for credit card processing. We serve a variety of industries, including online dating, CBD products, travel clubs, firearms and ammunition, hosting services, and more. We understand the necessity of having a quality system for your customers to use your services, and we want to be the solution for your business.
If you have been denied for credit card processing, or are planning on applying, and require help from a high-risk merchant account, here are some of the biggest reasons why applicants are denied, and what you can do about it. As you are researching or preparing an application and have any questions, don’t hesitate to reach out to the team at Nationwide High-Risk Credit Card Processing.
Biggest Reasons Why Your Credit Card Processing Application Was Denied
Your Personal Credit History
If your personal credit report shows a history of late payments, if you have a large amount of unpaid debt, or if an account went into collections, these are among the biggest reasons why merchant accounts deny applicants. When you are struggling with a low credit score or a negative history, it can be incredibly frustrating finding ways of improving it or working around it.
What to Do
In order to improve the score itself, try to pay off the debt as quickly as possible, look into disputing any negative marks on the report if possible, and discontinue use of the credit accounts. If you’re looking to start a business sooner rather than later, consider partnering with someone who has better credit and is willing to co-sign. You may also be able to offer assets or cash savings as collateral.
Your Industry Is High-Risk
Nationwide specializes working with businesses who are in high-risk industries, so if your business sells tobacco, firearms, is a gambling service, legal, or financial service, then we can help. These industries are more likely to experience chargebacks and fraud, making it difficult to find credit card processing companies that will work with them.
What to Do
Knowing that you are in a high-risk industry is a good start. Before you even apply for credit card processing, do some research on potential businesses and find out whether or not they will work within your industry. This will save you both time and money. If you are denied by one high-risk merchant account, you can always apply at another as each company will have different requirements and offer different options.
Difference Between Expected and Stated Processing Volume
Merchant accounts often have a basic understanding of what an average credit card processing amount is for a given industry. On your application, if you state that your expected processing amount is significantly over what is expected, this may cause your application to be flagged.
What to Do
The important thing is to not overestimate your sales and to provide information that is as accurate and realistic as possible. If your business does have sales that are higher than what is expected, you can still be approved for the account, but you may be required to provide additional information. When criminals try to open a fraudulent account, they often overestimate the sales amount, so high-risk merchant accounts are simply taking extra precaution on their end.
You’re on the MATCH/TMF List
The MATCH (Mastercard Alert to Control High-Risk Merchants) or TMF (Terminated Merchant File) list is designed to alert merchant account providers and banks of businesses that have had accounts terminated in the past. Businesses can be put on this blacklist of sorts when their account has had too many chargebacks, there was fraudulent activity, went bankrupt, or other factors occurred.
What to Do
If you find that your business is on this list, it is possible to be removed, but it requires determining which organization put your business on the list and what the reasoning behind it was. If there were outstanding bills, these will need to be settled first. It is the bank’s decision whether or not to put a business on the list or to take them off, however, it takes five years to be automatically removed from the list.
It can be considerably more difficult for high-risk businesses to find companies who will provide credit card processing accounts. However, Nationwide High-Risk Credit Card Processing is here to help. By providing high-risk merchant accounts for various industries, we are helping them establish and grow their business, which can only help improve their surrounding community. If you want to learn more about our application process, account details, and more, please get in touch with us today!