Home » High-Risk Merchant Account Instant Approval – Myth or Reality?

When choosing a payment processing provider, do not be swayed by claims that they can instantly approve your high-risk merchant account. Simply put, a high-risk merchant account instant approval does not exist — at least not in the true sense of that word.

This doesn’t mean that a high-risk business can’t get a fast approval or that there aren’t some things you can do to speed up the process.

Let’s see how “instant” and “guaranteed” approvals work in practice, how to improve your chances of getting approved, things you can do to expedite the process, and how to apply.

The myth behind instant approval for high-risk merchant accounts

Instant approval implies that you can submit your application and get automatically approved. In reality, there’s no such thing as a legitimate instant approval for any form of high-risk merchant services account.

The approval of a high-risk business requires extensive research into the business model, products or services, processing history, ownership, location, and financial condition. You’ll always be required to submit more documents and wait longer for the underwriting processes compared to a low-risk business.

Payment aggregators like Stripe, PayPal, or Square might allow you to create an immediate merchant account, but as soon as they realize you are high-risk, they will terminate it and freeze your funds. We work with numerous merchants who came to us after they experienced this unfortunate scenario firsthand.

How long does it really take to get approval for a high-risk merchant account?

In our experience, the approval for high-risk merchant accounts takes 2 to 5 business days. Once that happens, SecureGlobalPay team helps you configure the payment gateway and run test transactions (another 24-48 hours). After that, you are ready to accept credit card payments.

One way to ensure fast approval is to undergo pre-vetting with the chosen high-risk payment processing provider. For example, you can send over basic business details to partners@secureglobalpay.net. We can look it over, ask for more info if needed, and discuss it with our acquiring partners.

If all looks good, you can be sure that your high-risk merchant account will be quickly approved once you officially apply. And even if there are issues, our account representatives will help you sort them out ASAP.

How to increase your chances and facilitate fast approval for your high-risk merchant account

Navigating the waters of high-risk merchant account approval doesn’t have to feel like you’re steering through a storm. There are clear, proactive steps you can take to not just increase your chances of approval but speed up the process as well.

1. Work with a high-risk specialist

First off, team up with a payment processor that specializes in high-risk businesses and has a proven track record. There are three major reasons for that:

1. They understand the unique challenges and risks associated with your business model and are better equipped to guide you through the approval maze.
2. Competent high-risk providers will ensure a merchant’s paperwork is in order. This avoids unnecessary delays in the underwriting process.
3. Established high-risk merchant account providers will often have a bigger network of acquiring banks and processors. This makes it easier to find the ideal one that is in the best position to approve your business.

Take it from someone with close to 30 years of experience in high-risk space — we’ve seen it all and know how to position your application to increase approval chances.

2. Improve your credit rating

It’s crucial to remove any late payments, liens, or bankruptcies from your credit report before applying for a merchant account, especially if you are looking for fast approval.

Contact a reputable credit reporting bureau to get your credit report. Review it for inaccuracies and dispute any incorrect or unverifiable entries through the appropriate reporting agency. Where negative information is accurate, be prepared to explain it and provide evidence of improved financial stability.

If you have issues with poor credit, here’s a guide on opening a merchant account with bad credit.

3. Be upfront about your business history

Honesty is your best policy here. Being transparent about your business history, even if it includes chargebacks or financial hiccups, can actually work in your favor. Processors appreciate transparency and are more willing to work with merchants who are upfront about their past, as it helps in assessing risk accurately and setting up measures to mitigate it.

4. Provide proper documentation

Gather all necessary documents before you apply. This includes financial statements, bank statements, a business plan, and any licenses specific to your industry. Having your paperwork in order shows you’re serious and prepared, making it easier for the processor to evaluate your application quickly and favorably.

5. Maintain an informative and professional website

To ensure a good first impression, your website should be professional, easy to navigate, and informative. Have clear, accessible policies and company information, alongside any necessary legal disclaimers. The website should be fully functional, with a proper SSL certificate and a secure checkout page.

Payment processors will look at those features, and if they are missing, it could raise red flags and potentially hinder your approval process.

6. Be ready for special account requirements and higher fees

Occasionally, you’ll need to agree to specific constraints or pay somewhat higher fees to open a high-risk merchant account. If it makes sense, do it! Customers love convenience, so it’s worth giving them as many non-cash payment options as possible.

And, once your merchant account starts establishing a positive track record, you can typically renegotiate merchant service rates and reserve requirements.

7. Partner with the right credit card processor

Always shop around and talk to different merchant account providers. As a high-risk business, before making a commitment, you should have a clear idea about their:

• Transaction fees
• Gateway and equipment costs (if applicable)
• Rolling-reserve percentage and release schedule
• Early termination fees 
• Monthly minimum fees
• Chargeback fees

All of these expenses can pile up and ruin your profit margins. Do your due diligence to find a high-risk merchant services provider that will not rip you off.

Merchant account approval is easy with SecureGlobalPay

SecureGlobalPay is an all-in-one payment processing provider that specializes in working with high-risk merchants. We offer fair and customizable pricing options that help businesses accept and process payments quickly and effectively.

If you decide to work with us, you’ll get access to:

• Domestic and international merchant accounts
• A wide variety of standard and alternative payment methods
• High-ticket and high-volume processing with multi-MID setups
• State-of-the-art payment gateway with built-in AI fraud protection
• Integration with 200+ shopping carts, eCommerce platforms, chargeback tools, CRMs, and invoicing software. 

We are especially proud of our customer support. Each customer gets a dedicated, experienced account manager to guide them through the approval process and solve any operational issues as soon as they come up.

Learn more by sending a question to partners@secureglobalpay.net, contacting one of our sales reps at +1 800-419-1772, or simply filling out our online application form.