What to Do When Your Merchant Account is Declined
Successfully operating your online business depends on a number of factors. Chief among these is an online merchant account. This is an essential component of accepting credit card and debit card payments online. Without a merchant account, you will not be able to process credit or debit card transactions. If your merchant account has been declined by your merchant services provider or you were just informed of a terminated merchant account, look no further. SecureGlobalPay has multiple solutions to get you up and running quickly and efficiently.
The fact of the matter is, that without an online merchant account, you will be unable to process credit and debit card payments. You need an alternate solution and fast! SecureGlobalPay can provide alternate payment solutions like gift card acceptance, e-check, and crypto-based payments. This will allow you to start accepting payments while we work on finding a suitable high-risk payment processor to eventually accept all forms of bankcard payments as well.
Obtaining a Merchant Account After You Have Been Declined by Your Provider
Obtaining a merchant services account requires approval from a payment processing service and acquiring bank. But this approval is by no means guaranteed. There are many factors that are evaluated when underwriting an application for an online merchant account. These include business type, geographic region of where the business is located, processing volumes, average ticket, and much more.
What to Do When You Have Been Declined for Merchant Services by Your Merchant Provider?
Merchants who apply for a merchant account and find their merchant account declined by their merchant provider are simply unable to engage in credit card processing online. Applications can be declined for a number of reasons.
Please keep in mind, that finding an alternate payment processor who has an appetite for risk is no easy task. SecureGlobalPay with over 25 years of experience in the payment space has many relationships in place to assist you with your previously declined business.
What Does it Mean When a Merchant Account is Declined by a Merchant Account Provider?
When a merchant account is declined by a merchant provider, this usually means that the provider has determined that the account is not eligible for their services. Most commonly, getting a “merchant account declined” letter means that the provider believes the business is not compliant with its standards or policies.
What are the Main Merchant Account Decline Reason Codes
Some of the main reason codes for having your merchant account declined are listed below.
- The business is not established or has been inactive for too long
- The account does not have the correct credit score
- The account does not have the correct banking information
- The account is associated with an illegal business
- The account is not compliant with the merchant provider’s policies
Regardless of the reason, it’s important for a business to understand why its merchant account was declined and check any merchant account decline reason codes or response codes provided. This information can help to improve their operations and ensure that they’re meeting the standards of their merchant provider.
What Are My Options if I am Declined for a Merchant Account?
If you have been declined merchant services from a merchant account provider or acquiring bank, there are a few options available to you:
Declined Merchant Account Provider Options
Opening a merchant account with another merchant services provider, especially one that specializes in high-risk accounts, might be the best option for you. This is because the other merchant services provider might be more willing to work with you and possibly even provide a better service if your merchant account was declined.
Whatever option you choose, make sure to research the available options and choose the one that is best for your business.
Reasons a Merchant Account is Declined
Applications for online merchant accounts can be declined for many reasons. Most often declined merchants are those who have been designated as high-risk businesses. Some of the most common reasons for a declined or terminated merchant account are as follows.
Failure to Disclose/Dishonesty
High-Risk Merchants are often characterized by high processing volumes and high ticket sizes. This is one of the many reasons they are often rejected by more conservative payment processing firms.
Attempting to conceal or obscure this information leads to the same result. Misrepresenting your average monthly volume or ticket size will lead to your application being rejected. Business owners should avoid misleading information or misrepresentations about any aspect of their business.
Presence on the TMF MATCH list
Merchants on the receiving end of a terminated merchant account are often placed on the TMF MATCH list. The merchant’s name will remain on that list for five years. During that time it will be almost impossible to obtain a new merchant account.
Check to ensure your name or the name of your business does not appear on the MATCH list. To avoid appearing on the MATCH list in the future, keep your chargeback ratio low. Also, make sure to pay all outstanding bills and ensure all of your company officers have clean records and credit histories.
Unacceptable Industry Type
One reason applications get rejected is that the merchant in question operates in an industry deemed ‘unacceptable’ by the payment processor. Most often, these businesses deal in adult entertainment, gambling, cannabis paraphernalia, etc. It may be that you are operating in one of these ‘high-risk’ industries.
As such, your merchant account application will be rejected. You will be unable to process credit card transactions until you find a payment processor comfortable with your business. Persistence is key in this effort.
Illegal Activity
If you are involved in an illegal activity, your application is likely to be rejected right off the bat. Examples of such activities would be; distributing illegal narcotics, arms sales, or extreme pornography such as bestiality or child porn. Be honest about your business. Avoid fraud and illegal activity.
Why Do I Keep Getting Declined for Merchant Services?
As a merchant services provider, we know getting a declined merchant services notice can be frustrating. Without an account, online payments become challenging.
Here are a few tips to help you improve your chances of being approved for merchant services:
1. Make sure your products and services are of the highest quality.
Merchant services providers are looking for high-quality products and services that will meet the needs of customers. If your products or services aren’t up to par, your chances of being accepted will be significantly reduced.
2. Be responsive to customer inquiries.
Merchant services providers want to work with merchants who are responsive and willing to help their customers with any issues or questions, avoiding communication errors. If you’re able to respond quickly and efficiently to customer inquiries, you’ll avoid or reduce issues such as chargebacks and have a much better chance of being approved for merchant services.
3. Stick to the rules and regulations of the merchant service provider you’re applying to.
Merchant services providers have specific guidelines that they follow when approving or deciding if a merchant account is declined. If you’re not following those guidelines, your chances of being accepted will be significantly reduced.
What Can I Do If I’m Declined by My Merchant Services Provider?
If you’re experiencing a “merchant account declined” situation, there are a few things you can do to try and fix the situation.
First, you should contact your merchant services provider to see if they can help you troubleshoot the issue. Sometimes there might be a problem with your application or account that can be resolved quickly.
These points can also help improve your application and avoid the “merchant account declined” decision:
- KYC Documentation
- Full Contact Information
- Having a Good Return Policy
- Website Security Setup
- Sales Figures or Sales Predictions
- A Realistic Marketing Plan
However, if those solutions don’t work, it might be time to consider switching providers. There are a number of great high-risk merchant services providers out there like SecureGlobalPay, and it might be worth trying one out before your current provider becomes unavailable.
The Declined Merchant Services Solution
Operating an online business poses a great many challenges. From daily operations to billing and invoicing, handling web traffic, processing credit cards, fears of declined merchant services, and dealing with lending institutions, it’s never easy.
Whether you are a seasoned merchant or an absolute beginner, the task of getting started can be daunting. Let the experts at SecureGlobalPay lead you in the right direction and get you on the path to success. Our seasoned reps are here to assist you in submitting the absolute best application to help with your chances of approval. Under such circumstances, having a trusted, experienced source of good advice is invaluable.
SecureGlobalPay has the expertise and experience to help guide you through the process. From the moment of first contact, SecureGlobalPay can help. From filling in your online application form to designing the architecture of your online environment. We can also assist you with integrating your payment gateway, providing chargeback management tools, or even finding additional merchant accounts to help you scale your business. Our experts can guide you toward the path of success. Contact us today to get started in obtaining an online merchant account for your business.
