High Risk Merchant Account Instant Approval – Is It Possible?

When choosing a payment processing provider, do not be swayed by claims that they can provide a high-risk merchant account instant approval. Simply put, a high risk online merchant account instant approval does not exist. If you are looking for a high risk merchant account to accept high-risk credit card payments, you must practice some patience. A high risk merchant account approval tends to take longer than standard, low risk merchant accounts. Most high risk industries and high risk merchants need additional time to underwrite, which usually adds 1-2 business days to the merchant account underwriting process.  

 

High Risk Online Merchant Account Instant Approval

While merchant accounts for low-risk businesses can be instantly approved, most take around 2 business days to go live. High risk online merchant account instant approval only happens when the account does not get underwritten properly. Payment aggregators like Stripe, PayPal, and Payoneer are notorious for high-risk merchant account instant approvals. They auto approve high risk businesses without initially doing the underwriting. They also tend to approve business owners with poor credit and bad credit histories.

Additionally, aggregators are known to approve high risk businesses with high percentages of chargebacks. These practices only lead to a much larger problem when the merchants are shut down or terminated later once the account review has taken place. SecureGlobalPay, a high risk payment provider with its state-of-the-art payment gateway for high risk business specializes in assisting high risk merchants of all shapes and sizes.

 

Fast Approval High Risk Merchant Accounts – How Long Does it Really Take to Get Approved?

High risk merchant accounts usually take approximately 3-7 business days to be approved. Once the merchant agreement is approved by the sponsor bank and the payment gateway is configured with the payment processor, the high risk merchant can expect to accept credit cards within a few hours.

Many high-risk credit card processing providers claim they can instantly approve high risk merchants, which is misleading.

 

What to Expect with a Fast Approval High Risk Merchant Account from SecureGlobalPay

A fast approval high risk merchant account is a 2-step process. High risk merchant fast approvals can be expected when the account is initially pre-vetted with a high risk payment processing provider and acquiring bank. This is the first step.

The second step of the approval process is the application process. Once the merchant account application has been submitted to the payment processor that underwrites the merchant account for approval. This process takes a bit longer for high risk merchants and will ultimately determine the fate of the merchant’s ability to accept payments.

 

Why High Risk Merchants Should Avoid Looking for a Same Day High Risk Merchant Account Approval

One major reason you should avoid providers that advertise same day high risk merchant account approvals is that they simply do not exist. It is impossible to properly underwrite merchant services for high risk category merchants with low credit scores and bad credit history. In addition, high risk merchant account providers look at high risk merchants in a different category altogether, as they are considered high risk to begin with.

An experienced and reputable high risk payment processing service provider will want to get to know your business intimately. Their primary goal will be to help convince the financial institution and sponsor bank that no matter what happened in the past, the merchant is ready to start processing payments responsibly and build a long-term relationship with the specific acquirer that granted them the approval.

 

Fast Approval High Risk Merchant Accounts – This is Possible

A trustworthy, experienced payment provider should also be able to assist merchants with fast approval high risk merchant accounts. Additionally, they should be able to provide multiple types of payment gateway solutions, some of which include multiple merchant account payment processing, intelligent transaction routing, and chargeback mitigation and management tools.

Please remember that if the approval is denied, the merchant account provider should be prepared to apply to an alternate provider immediately. Failure to do so will slow the entire process down. SecureGlobalPay, with its wide range of high risk merchant account providers, can submit multiple merchant applications simultaneously, which helps speed up the approval process and also provide multiple merchant accounts payment processing options.

High risk merchant accounts are a niche market. The underwriters reviewing these files are well-equipped to properly underwrite all types of high risk accounts, including owners with poor personal credit. Bad credit merchant accounts are simply high risk merchant services for businesses that have made some financial mistakes. Everyone deserves a second chance, and high risk merchant processing specialists are willing to take the time needed to help these merchants with their approvals. Merchant accounts with bad business credit need creative solutions only experienced high-risk payment processors can provide.

 

Merchant Accounts for Low-Risk Businesses

The quickest way to open a merchant account in the low-risk industry is to apply with one of the many payment aggregators or PSPs. Some of the most popular payment service providers are Stripe, PayPal, Square, and Payoneer. 

Unfortunately, (PSP’s) payment service providers do not offer their services in the high-risk industry.

These PSPs are not exactly merchant account providers; instead, they aggregate their users under a single merchant account, where every user owns a sub-merchant account.

These sub-merchant accounts often get approved instantly or within 24 hours because they undergo a minimal underwriting process. High-risk credit card processing merchants do not have this luxury.

A lenient underwriting process is a reason why PSPs are able to provide a high-risk merchant account instant approval which usually result in frozen funds or terminated accounts.

Multiple Ways to Increase Your Chances of a Fast Approval

While it is impossible to enjoy high-risk merchant account instant approval, there are ways to speed up the process and boost a merchant’s chances of receiving a fast approval high risk merchant account.

• Work with a High-Risk Specialist: A merchant should always work with a high-risk payment provider with plenty of experience in their industry when accepting high-risk credit card payments. The provider should also have a proven track record of working with businesses in your niche.

Competent high-risk providers always ensure a merchant’s paperwork is in order. This avoids unnecessary delays in the underwriting process.

They also have an impressive network of acquiring banks and processors and go through a painstaking process to find the ideal one in the best position to approve your business.

• Be Upfront with Business History: Do you sell cannabis or medical marijuana? Are you in the adult entertainment industry?

Have you filed for personal bankruptcy before? Did you have your previous high-risk merchant account terminated?

In desperation to get approved, some high-risk merchants misrepresent the facts and are economical with the truth.

But merchants should avoid falsifying documents for approval because it is only a matter of time before you are found out. And when that happens, you could lose your opportunity of opening a high-risk merchant account permanently.

A merchant should never hide anything from the underwriting team when looking to accept high-risk credit card payments. Being honest can work in your favor and get your account approved faster.

• Proper Documentation: High risk merchant account providers demand more information than low-risk merchants.

Present valuable information with your application rather than waiting to be asked, as it slows down your approval process.

Ensure that the documents are scanned and saved as PDF files so that they can be conveniently e-mailed to the provider.

 

Basic Requirements for High-Risk Merchant Account Approvals

• CV of business owner
• Photo ID
• Utility bill (to confirm physical address)
• Business plan
• Reference letter from bank
• Payment processing statements from the last 3 months (for high risk merchants switching providers)
• Copies of banking statements for the last 3 months
• Copies of supplier agreements (for retail merchants)
• Articles of Association (where applicable)
• Articles of Incorporation

 

What to Look for in a High-Risk Merchant Account Provider

• Responsive customer support
• Transparent pricing
• Advanced technology
• Customization and adaptability

Conclusion – SecureGlobalPay

It is not easy to get a high risk merchant account approval. If your approval is refused multiple times, do not be forced to sign up with any provider and fall for the scam that a high-risk merchant account can be approved instantly.

A simple Google search for “high-risk merchant accounts” will unearth dozens of ads from providers claiming they can open high risk merchant accounts instantly.

Resist this temptation of a high-risk merchant account instant approval because it can cause you severe problems down the road.

There are dependable providers in the high-risk industry that can get you approved promptly to accept high-risk credit card payments.

SecureGlobalPay is one of the best payment processors around. They have an impeccable track record of high-risk merchant account approvals. Please feel free to contact one of our sales reps at +800-419-1772 should you have any questions or need assistance in any way. SecureGlobalPay, payment processing solutions that make sense.