| Copyright © Philippe de Tiege | | | | in the past be up front about them. You do not |
| What is a "high-risk" merchant and how do you | | | | want them to find out something happened |
| know whether-or-not you are in the category? If | | | | different from what you reported on the |
| you are what can you do to change your status? | | | | application. |
| Some examples of high-risk merchants include: | | | | * You may be offered the account but at a |
| * Internet or E-commerce | | | | higher rate than what you want, be willing to |
| * Telemarketers | | | | accept higher fees if they offer it to you. In this |
| * Travel or Cruise companies | | | | way, you can prove yourself and eventually |
| * Internet Auctions | | | | move to an account with lower fees. |
| * Businesses that offer memberships to join their | | | | * |
| business. | | | | The amount of time you have been in business is |
| If you own a high-risk business this is not a | | | | important because those providers of merchant |
| reason for immediate denial of operating with a | | | | accounts want to make sure you know what is |
| merchant account. Although you may face a few, | | | | going on and what is expected of you. By looking |
| more challenges than other types of businesses in | | | | at the time, you have been in business they can |
| acquiring a merchant account. Other factors that | | | | determine if you understand the risks you face |
| are considered when you apply for a merchant | | | | and if you know how to prevent fraud and |
| account would be how long your business has | | | | understand the dynamics of managing credit |
| been in operation, credit history, how you made | | | | cards. If you have not been in business long this |
| payments with other merchant accounts or with | | | | tells the merchant operator that you may not be |
| other processors. This information will help those | | | | ready for this type of account. |
| who are considering your account as to | | | | Of course, your credit report will show your |
| whether-or-not you will be faithful to your | | | | worthiness to be extended credit as they look for |
| payments. | | | | how you have repaid loans, do you have any liens |
| If you want to increase your opportunity to gain | | | | on properties or judgments that are against you. |
| a merchant account here are a few tips that may | | | | They want to see if you have filed any |
| help you: | | | | bankruptcies. If you have a positive credit score |
| * Take care of your credit report. If you have | | | | this will work in your favor even if your business |
| anything negative or that may be false, clear it up | | | | may be new and if you can prove that you are |
| immediately. | | | | financially responsible they will look more favorably |
| * Do not lie or hold back any information on other | | | | to offering you a merchant account. |
| accounts you may have had. If you had problems | | | | |