Credit Card Processing – Getting Your Merchant Account Application Approved
Applying for a merchant account must be easy. After all, these providers will make profit each time you process a transaction. But really, is it all that simple? The payments business is very competitive, and processors clearly want your business – but they still have to do their due diligence prior to approving an application.
Below are two steps that will help increase your chances of getting your application approved:
1. Put your financial statements in order.
Financial statements are the single best tool you can count on to leverage the best possible approval terms. Some people decide against providing financial statements when they apply for a merchant account. Usually, these are privately owned medium-sized companies that put a prime on their privacy. After all, company financials are very sensitive information about a business.
But from a payment processor’s point of view, this is a huge mistake. More than anything, underwriters will want to see evidence of an applicant’s financial stability so they can determine whether or not the company will be able to continue successfully in the years to come.
On the other hand, startup merchants would give anything to have a solid balance sheet, realizing this would make or break their approval.
If you have worked hard to be where you are, it’s counterproductive not to use this successful history to get the most favorable terms of approval. So make use of your financial statements, or get ready to put up a security reserve. Pull out your most recent balance sheet, profit and loss statement, as well as any notes your accountant may have made.
2. Take a look at your processing history.
A positive processing history is yet another very effective way of leveraging your application. More money traded and less chargebacks equal a stronger case. The idea is simple: you have successfully processed credit cards in the past, so why would anything change?
Always provide three months’ worth of processing statements at least when available. Six months is going the extra mile, unless you offer high-risk products or services or you trade high volumes. In that case, you’ll need an entire year’s worth of statements.
You’ll need to do some extra work on that, but it’s better than being required to prepare a security reserve.
At the end of the day, the best tool you can use before submitting your application is your merchant account sales representative. Ask all questions you have in your mind and pay attention to the answers. If things sound too positive, be skeptical.
Be as honest as possible with your expectations, and if you have any doubts, raise them upfront. The processor you’re working with should want to help you get approved, eventually leading you to a mutually beneficial longstanding partnership.