Do Multiple Applications Hurt My Chances of Approval?

Working with a Seasoned Payments Provider makes all the difference.

In a previous essay, we discussed the benefits of applying for and maintaining multiple merchant accounts. Multiple MID’s provide business owners with several advantages when it comes to payment processing. Having multiple merchant accounts can be the difference between successfully running an online high-risk business or absolute total failure should the one and only merchant account a business has to process payments get shut down. Having multiple applications for merchant accounts will not hurt your chances of approval. In fact, if done properly and with clear intent, your business will greatly benefit from this experience. Learn why having multiple payment processors and intelligently routing transactions to the payment processor of your choice is of utmost importance for your high-risk business success.

What’s the Big Deal with having Multiple Merchant Accounts?

In brief, these benefits are numerous. Multiple applications for merchant accounts enable businesses to accept and distribute chargebacks among numerous accounts. Multiple MID’s also enable you to avoid the penalties incurred with monthly processing caps. Having a secure payment gateway with an account manager allows businesses to intelligently route transactions to the payment service provider of their choice. With no limit to the number of credit card transactions you can process each month, your revenue is maximized and your high-risk business exposure is mitigated. 

Additionally, there are other benefits of having multiple applications for merchant accounts in play. Run transactions through multiple payment providers, all through one secure payment gateway.

Added Benefits of having Multiple Merchant Accounts

Having multiple applications for merchant accounts is ideal for companies that operate internationally. Processing transactions for your high-risk business in multiple currencies through multiple acquiring banks can help increase your revenue. Be careful and make sure you understand currency exchange rates. Especially, if those accepted currencies are converted back into a different currency altogether. Maintaining multiple merchant accounts can allow you to separate foreign transactions from domestic ones and so minimize confusion and streamline processing.

Another benefit is the ability to avoid interruptions in monthly volume and transaction caps. Failure to keep up with multiple bank fees and charges or penalties from regulatory bodies will most definitely cause a business some headaches. However, by maintaining multiple accounts, merchants can continue to process transactions via their payment gateway when commerce has been halted on another account for any reason.

Multiple accounts also enable merchants to avoid the inconvenience that can arise due to ‘downtime’ of banks, processing platforms and payment processors. These occurrences are very rare but can still happen nevertheless. It’s better to be prepared and have a back-up plan in place should something unprecedented happen.

These can occur for many reasons, but computer or server issues are usually the most common. Should a bank or payment processor go ‘down,’ this will affect access to a merchant’s business bank account. It also impacts a merchant’s ability to accept credit card payments. Merchants with multiple accounts will have a built-in backup plan if this happens.

Multiple Applications for Merchant Accounts – How to Apply

Before applying for multiple applications for merchant accounts or a multi-merchant account payment solution, it pays to understand where your business sits in terms of risk. Check out other essays on our site about high-risk merchant accounts in general for more information. Understanding where you stand going into a negotiation, agreement or contract is critical at the outset.

1. Do your research up front. In addition to understanding your relative/comparative risk, learn more about the banks and payment processing services to which you are applying. Are they reputable? Are they the right fit for your business or industry? Will their business norms and practices serve your needs? 
2. Take time to learn about the transaction fees they impose for processing debit or credit cards to ensure they are manageable for your business.
3. Follow all the required steps in the application process. Furnish all required materials promptly and without delay. Take time to ensure it accurately reflects the state of your business at the time of application.
4. Be honest about yourself, your business and the nature of your industry. Make sure that all of this information is fully and accurately reflected in your application documents. Being truthful and thorough up front will help you avoid delays and frustrations further down the line.