How High-Risk Businesses Can Secure Reliable Merchant Accounts for Payment Processing

Operating a high-risk business is a complicated endeavour by definition. However, it can become an impossible one if you can’t secure a reliable merchant account for payment processing.
Fortunately, there are payment processors out there that work with high-risk businesses. However, securing a merchant account with the right payment service provider does require going through a lengthy application process and approval is far from guaranteed.
So, let’s go over the 5 main things high-risk businesses can do to secure reliable merchant accounts for payment processing.

1. Choose a payment processor with the necessary permissions and compliances

Only a small percentage of all the payment processors out there are willing to work with high-risk businesses and help them with payment transactions. Even such a small percentage amounts to a pretty high number, however, so you will have ample choices and it’s important to make the right pick.
First and foremost, it’s crucial to look for a payment processor that has all the right compliances and permissions for your needs. High-risk businesses tend to have various differences in activities and needs even from each other and not just compared to low-risk businesses. So, when choosing a payment processor, the first step is always to make sure they can perform the services you need.

2. Pick the payment processor with the right services for your needs

Once you’ve found a payment processor with the necessary compliances and permissions, it’s important to make sure your choice also has the right features you need.
For high-risk businesses, you’d usually need something along the lines of:

• Chargeback prevention: A payment processor that takes proactive steps for reducing the number and impact of chargebacks.
• Streamlined payment processing: A processor that functions as a unified platform that not only handles various payment methods but has many other monitoring, communication, and automation tools.
• Fraud prevention: A payment processor that works actively to prevent, detect, and halt all types of fraud a high-risk business can fall prey to.
• Virtual cards for fast and flexible transactions.
• Access to the right markets for your needs.
• Competitive and transparent pricing, as high-risk merchant accounts can have rather high commissions compared to low-risk accounts.

Some payment processors (e.g. Paycompass) offer all of the above and more and specialize in working with businesses in high-risk niches. Even with them, however, there is still a lot of variation in the exact services and rates they offer, so, it’s important to always take your time to make the right pick for you.  

3. Have all the necessary documents ready and in-line with the payment processor’s requirements

Submitting an application for a high-risk merchant account requires quite a lot of paper work. To save yourself some time, as well as to maximize your chances of getting approved, it’s best to have all necessary documents prepared ahead of time. 
To do that, it’s key to read through the documentation requirements of the payment processor in question, as these can vary. It’s also important to ensure the stats and figures on your documents match the stated approval requirements of the processor, as those also vary.
Usually, these are the main things you’d need to prepare: 

• Proof of a business bank account, accompanied by bank statements.
• Business and personal credit history in-accordance with the payment processor’s requirements.
• Valid business license(s)
• A physical business address.
• Complete and submit a high-risk merchant account application.
• A valid Employer Identification Number (EIN)
• Articles of incorporation.

4. Prepare for communication with a security officer

Most payment processors will require an interview with a security officer some time after the submission of your application. The exact time frame can vary, but is usually somewhere between 2 and 10 days after the initial submission.
The interviewer will go over your application and documents and will look to confirm what you’ve stated and ask for clarifications.

5. Cooperate fully with the underwriting team

Even after the communication with the security officer, there is still going to be a lengthy underwriting process, during which the processor’s team will go through every detail of your application, check with your bank that everything is in order, and may even have further questions for you. Cooperating with the underwriting team swiftly and accurately is key for your application to be approved.
Overall, securing a reliable merchant account for payment processing is a lengthy endeavour, but it’s quite doable as long as you pick the right platform for your needs, have the necessary documentation and figures, and cooperate fully with their staff.