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 to accepting credit card and debit card payments online. Additionally, you must also be prepared to accept a variety of alternate payment methods, including gift cards, e-Checks and Crypto based payments. Without a merchant account, you will not be able to process credit card or debit card transactions. If your merchant account has been declined 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. 

Plain and simple, 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 solutions that will get you accepting payments while we work on finding a suitable high risk payment processor for your business, to eventually accept all forms of bankcard payments as well. 

Obtaining a merchant services account requires approval from a payment processing service. 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. 

Merchants who apply for a merchant account and find their applications declined are unable to engage in credit card processing online. Applications can be declined for a number of reasons. We will consider these below, and then look at all possible solutions to get your business up and running and accepting all forms of payments as needed. Please keep in mind, 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. 

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 has remained 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. 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 out-of-hand. 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.

The Solution

Operating an online business poses a great many challenges. From daily operations to billing and invoicing, handling web traffic, processing credit cards 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, to integrating your payment gateway, to providing chargeback management tools, our experts can guide you towards the path of success. Contact us today to get started in obtaining an online merchant account for your business.