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Learn more about acquiring a bank account for your high risk merchant account

Bank Account for High Risk Merchants

A bank account for high risk merchants is most commonly referred to as a high risk merchant account. In order to accept debit and credit cards from customers you’ll need one that is customized for your business. Follow the steps below to find the merchant account provider that suits your business-type and can provide sustainable payment processing.

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How To Sign Up For A High Risk Bank Account

Ecommerce stores in certain industries require a high risk bank account in order to accept credit card payments from their customers. To sign up, contact a provider that has experience with your business type. For example, some are experienced boarding international accounts, while companies like Zen Payments specialize in adult, CBD, firearms, nutraceuticals and more. 

High risk payment processors make the first step easy. First find a form on their website and fill out your information. An agent from the company usually responds very quickly to walk you through the application process.

What Is The Merchant Application Process?

  1. Application – The merchant provider will send you an application to fill out
  2. Collecting Documents – You’ll be asked to provide your payment history such as the volume of your transactions and how long you’ve been in business
  3. Underwriting – Once your documents are together they’ll submit your complete package to underwriting to see what else needs to be done, or to write-up the specifics of your account. 
  4. Signing – The Underwriting team then sends you a document with the details on your volume, fees, and any other specifics. 
  5. Approval – Once you sign, the bank will come back with an approval if everything is in-line. 
  6. Integration – Be sure to integrate the payment gateway that customers view as a checkout page on your site
  7. Maintenance – Follow your chargeback rates and be sure all transactions are running smoothly.
High risk merchant accounts

My Merchant Account Got Closed Down

In the high risk payment processing space it’s common to hear that someone’s merchant account was shut down. If this happens to you, be sure to seek out new payment processing options to get your website operational as soon as possible

Why Did My Merchant Account Stop Processing?

Your payment processor will close your merchant account for a number of reasons the three most common are as follows:

  • Breaking The Terms and Conditions – If you’re starting an online business you’ll want to get your credit card processing capabilities established quickly. Oftentimes, this means seeking out instant approval merchant accounts. However, this can result in a closed account if you don’t follow the terms you signed up for.

    Aggregate merchant account providers are the major ones like Square, Stripe, and PayPal, and although the approval process is fast, they don’t allow high risk business types. The reason many high risk businesses figure this out is by applying and getting canceled down the line. This can leave your company in a bad place as customers will be trying to make purchases, and see that their payments are declined.
  • High Chargebacks – Chargeback rates play a major role in payment processing and are often a reason why certain accounts are suspended or shut down altogether. The ideal number is zero chargebacks, but most companies have an allowance of around 1%. If your customers are denied a refund, they’ll be more likely to take this approach and create a dispute. Keep your chargeback levels down to avoid any interruptions or audits from your payment processing company.
  • Fraud – This is a reason that legitimate merchants don’t have to worry about, but banks are obligated to investigate. If they find reasons that appear as fraud such as selling faulty products or engaging in the clandestine exchange of money, then they’ll close a merchant account.

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