Merchant account rejection - save time & learn the reasons ahead of time

On the other hand there is no such thing as a guaranteed merchant account to some of the marketing materials, which is on the Internet in the circulation. Some traders, service providers can legitimately win an approval rating of 98% or higher, but that's because they to qualify clients, before a merchant account application to the processor.

In fact, there are a number of reasons why a merchant account application could be rejected. Knowing these reasons, before you apply for a merchant account to save time and aggravation of caused by the entire application process only be rejected. Without further delay the main reason is here, why processing banks reject merchant account applications.

Bad personal credit or active collection set account, if a company publicly traded on a major stock exchange the personal credit of the respective owners or permission is Chief merchant account. If the personal credit of the owner is bad or shows active collections, the application will be denied account.

Active tax liens - one active tax lien against the principal or the business is grounds for immediate rejection.

Unacceptable type of transaction - processing, banks have different policies that set the types of business, which it will issue merchant accounts. If that request is indicating a banned business type, the application will be rejected. Typical prohibited business types include debts relating to companies, adult businesses and companies, which offer extended warranties.

Type of company does no processing volume or average ticket size - processing banks amounted to seriously take and check each application to merchant account for evidence of foul play. If the processing volume and average ticket listed on an application with the type size of business jive not, is the application rejected. If a coffee shop is an average ticket of $500 on listed the merchant application, for example, probably get rejected, or at the very least would ask the processor to justify the ticket size.

Present your compare list - the Member alert control high-risk (merchants) file (MATCH) of member banks record dealer or security principals that have had their accounts closed or canceled due to violation of their merchant service agreement is maintained. A dealer or a principal on the MATCH file won't be able to get, until they are a merchant account. Pulling out of the MATCH file is no easy thing to do and requires usually mutual legal assistance.

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