Three Reasons Business Merchant Accounts Are Declined
January 24, 2014 by admin
Filed under Merchant Accounts
For some companies, finding a merchant bank to process their credit cards is difficult. Small business credit card processing has risks for merchant processors. Clients that go bankrupt or have an inordinate amount of chargebacks — essentially, customer requests for refunds — can cost merchant banks money. If a company falls into the category of being a high risk merchant account, they will have trouble finding a credit card processor that wants to do business with them.
While there are many reasons that a business might be turned down for a merchant account, here are five of the most common scenarios:
1. High Risk Business Types: Certain businesses are more likely to have chargebacks or other issues that can come back to hurt processors. This can include gambling sites, sites with adult content and video gaming sites. Processors are reluctant to provide online merchant accounts to these types of businesses.
2. Being on the MATCH List: The merchant processing industry keeps a list of businesses who have had their merchant accounts terminated in the past for unpaid bills, unethical business dealing or other reasons that would raise a red flag. Businesses on the MATCH List typically cannot get another merchant account.
3. Poor Personal Credit History: Along with checking to see if your business is on the MATCH List, a credit card processor will also check the credit history of the individuals associated with the business requesting the account. If the people who are signing on as principals of the account have poor credit ratings, defaults or bankruptcies, it will impact the business’s ability to accept credit cards.
If you are having trouble finding a company to process your credit card sales, contact Charge.com Payment Solutions, Inc. We excel in working with high risk companies to find solutions that let them accept credit cards.
This article is from Charge.com Payment Solutions, Inc.. Charge.com Payment Solutions, Inc.
gives business owners access to online merchant accounts with no long-term contracts.
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