5 Reasons why your high-risk business may be declined by a payment processor

LotPayments

5 Reasons why your high-risk business may be declined by a payment processor

When you open your business, and all your ducks are in a row, ready to start operation, the last thing you want to hear is that your application for a merchant account has been declined. — Often, start-up businesses do not even understand why their accounts were declined by payment processors.

To avoid this grave disappointment, and potentially severe devastation on your business, it’s necessary to understand why payment processors usually decline business merchant applications.

Payment processors, like any financial institution, do not want to take on clients who will pose a threat to their operation; indeed, they want to avoid risk, understandably.

USUALLY, HIGH-RISK BUSINESSES ARE CATEGORISED BY THE FOLLOWING ATTRIBUTES, ACCORDING TO MOST PAYMENT PROCESSORS:

High chargebacks
Low credit facilities
Reputational (stigmatic) risks
Previous bankruptcies.

The good news is that Lot Payments, a payment processing facilitator with contacts among many offshore acquiring banks, has provided your business with five major reasons why your high-risk business may not receive ‘merchant’ status: —

THESE ARE THE TOP 5 REASONS FOR MERCHANT ACCOUNT DECLINES:

1. HONESTY IS THE BEST POLICY

Every piece of data or information about your past credit history needs to be provided. This includes any lapses of payment in the past. Although such lapses may look bad, it will be worse if you leave it out intentionally and your provider finds out.

Remember that your credit history is available to all lenders and providers for checking purposes. Even individuals within your organisation who have been given rights to sign for deposits, etc., must be in a good credit standing in order for your business to receive high-risk payment gateway accounts.

Most merchant processors will require that the individual signing has a major position, partial or title ownership within the company if it is registered as an LLC or corporation. Meanwhile, if you have a high-risk merchant account termination history with another bank, your name or business will definitely appear on the TMF Match List, a “blacklist” that processors use in order to determine which businesses pose a high credit risk.

Any outstanding bills or fees to a previous provider gives you a poor chance for approval. High-risk merchant account providers are always wary of issues that may lead to merchant fraud.

APPLY NOW

Apply with Lot Payments today and discover the great benefits available, especially for high-risk businesses seeking merchant accounts. With Lot Payments’ expansive offshore acquiring bank connections, you can be sure to find a solution to make your business a success.

LotPayments

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But, no need to worry because today, most high-risk businesses are booming, and somewhere its credit goes to a suitable high-risk merchant account and high-risk payment gateway. Let's have a look at the main difference between a high-risk merchant account and a low-risk merchant account. Tips to Get the High-risk Merchant Account - Once you know that your business is high-risk, obtaining a high-risk merchant account is challenging. Here, we will discuss some tips that will help you increase your chance of getting a high-risk merchant account. It means merchants can get the high-risk merchant account, high-risk gateway, and credit card processing in one place.

Best of all High-risk payment gateway service provider

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Now if we talk about high-risk payment gateway service providers, there are many reasons to approach them. A high-risk payment gateway service provider is a PSP that provides its services to high-risk businesses. Features that our High-risk payment gateway provides can provide convenience in payment processing. The requirement of a high-risk payment gateway is that it can provide many essential features which areHIGH-RISK PAYMENT GATEWAY PROVIDES-Multi-Currency TransactionOffshore transactions will be easier with a high-risk payment gateway. inSource: Best of all High-risk payment gateway service provider

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This paper will talk about the different kinds of high-risk payment gateways, what they are good for, and what risks they might pose. This section of the blog will talk about the benefits of using a crypto payment gateway, the different types of gateways, and the steps needed to set up a crypto payment gateway. Advantages of Using a Crypto Payment GatewayThere are several advantages to using cryptocurrency payment gateways over traditional payment methods. Different Types of Crypto Payment GatewaysThere are various types of crypto payment gateways. How to Make a Crypto Payment GatewayThere are several steps to creating a crypto payment gateway.

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Advantages of Using a Crypto Payment GatewayIn comparison with traditional payment methods, crypto payment gateways offer a number of benefits. Different Types of Crypto Payment GatewaysCrypto payment gateways come in a variety of types. Potential Risks Associated with Crypto Payment GatewaysAlthough crypto payment gateways offer many advantages, there are also some potential risks associated with them. High Risk Payment GatewayNowadays, high-risk payment gateways play a vital role in the economy. Potential Risks of High Risk Payment GatewaysWhile high-risk payment gateways offer many benefits, there are also some potential risks associated with them.

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Legal age restrictions, Controversial Content, Reputation concerns!

Then it’s quite challenging to find an adequate credit card processing solution for your adult entertainment business.You can make your business big by entering into the adult industry in this modern-day world.

For running an adult website, you always have to be stable and have an experienced hand for guiding you so that you can avoid big mistakes.

An adult merchant account solution is a must if you have an online adult business.

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A high-risk merchant account is a type of bank account that allows businesses to accept credit card payments from customers. This type of account is designed for businesses that are considered to be high-risk, such as those that operate in industries with a high level of chargebacks or fraudulent activity. Why Do Businesses Need a High-Risk Merchant Account? Here are some steps businesses can take when applying for a high-risk merchant account:Research potential merchant account providers and compare fees and servicesGather all necessary documentation, including business licenses, financial statements, and processing history (if applicable)Be prepared to provide detailed information about the business, including its products or services, target market, and risk management strategiesTips for Managing a High-Risk Merchant AccountManaging a high-risk merchant account requires extra attention to risk management and customer service. By following best practices for risk management and customer service, businesses can successfully manage their high-risk merchant account and thrive in their industry.

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Perhaps one of the biggest difficulties of being a merchant in the adult industry is trying to accept customer’s payment online.

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It is a special bank account designed solely for adult businesses' purposes.So what is the problem with high-risk merchant accounts for adult websites?The adult industry carries with it a track record of high risk in terms of chargebacks, too many chargebacks and it’s not at all good for both the merchant and the accounts provider.

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However, it’s also important to find the best solution that is stable and reliable- if your provider is not adequately prepared for adult merchant solutions then there are chances of problems, the last thing you want to have your money frozen or lost!Where can you set up an adult merchant account?Contact with your local bank if they offer merchant services for your high risk business or firm.