Want To Get A Second Merchant Account? Know This First!

Is your business booming to a level that you’re thinking of acquiring a second merchant account?

Several merchants settle with just a single account for their business. But what when your business starts growing, and you aren’t able to go beyond the monthly limit? This is where a secondary account comes to your rescue.

It is also a great way to diversify your banking experience. Plus, there must always be a Plan B if your current account shuts down due to any reason. If you are a high-risk business owner, having a second merchant account provides you with additional processing options, such as high-risk eCheck processing, support for high-risk credit card transactions, affordable chargeback rates, etc. There are the least scenarios to hold you back.

This article will quickly brief you through the crucial steps to successfully get your second merchant account. But before...

Reasons Why the Application May Be Rejected

Before getting into further details, know the situations under which your application may be rejected:

Restricted categories: Merchant Category Codes or MCCs are used to identify a merchant by their particular business type. Thus, some payment processors restrict certain MCCs, making it difficult for your business to acquire additional accounts.

Poor processing history: Several processors deem your account history very important. If there are excessive chargebacks, insignificant sales volume, and higher risk for at least three consecutive months, your application may be turned down.

Failed website compliance: It may appear to be a long list of compliance requirements, but not meeting those would run you into problems. Your aim must be to ensure the site is ready for high-risk merchant account approval. It must contain all the necessary elements such as SSL certificate, business address, contact details, transparent terms and conditions, customer rights and responsibilities, payment details, and more.

No KYC compliance: Banks have strict KYC standards (applicant’s identity, proof of HS, utility bills/ government ID, online reputation, etc.) to verify your business information. If you are unable to meet the criteria, your application may be denied.

Being TMF/ MATCH listed: If you are put on Terminated Merchant File (TMF) or Member Alert to Control High-Risk (MATCH), it is a critical factor that may be used against your application to overrule it. There are few chances to fix this listing, but you would certainly be able to do so with dedicated efforts and proper paperwork.

These reasons make it mandatory for you to keep your current account in stellar shape, or else you will have to seek alternative payment options. In fact, you can also opt for an offshore merchant account to have more flexibility and a lesser decline rate. But the requirements may be different according to the region.

Preparing For Second Merchant Account

No two payment processors, especially banks or high-risk credit card processing providers, are alike. The terms that one may have would not necessarily be the same as the other processor. Plus, regular updates always keep the processors divergent with their terms and conditions. For this reason, most business owners like to work with professional high-risk merchant services to be aware and ahead with the ever-changing high-risk payment gateway requirements and compliances. An expert service provider will advise you on how to correctly acquire an additional merchant account quickly and without much hassles.

Liberty Enterprises offers a wide array of offshore and US domestic credit card and Ach/E-check merchant solutions.For more visit www.confidentialbanking.com