What To Do If Your Card Processing Application Gets Declined

13 August 2024

Written by Libby James

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

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Declined Merchant Accounts

Reasons for Card Processing Decline

There are various reasons why your application for card processing may have been declined. Let’s explore some common factors:

Poor Credit History: If your business contains a history of financial instability or a low credit score, it’s going to raise concerns for the payment processor.
Industry Risk: Certain industries are considered high risk by payment processors thanks to factors like chargebacks, fraud, or legal restrictions. These industries can include online gambling, adult entertainment, pharmaceuticals, and more.
Incomplete Application: If your application is missing vital information or documentation, it could lead to a decline.
Previous Merchant Account Issues: If you’ve had problems with a previous merchant account, like excessive chargebacks or violations of the payment processor’s terms and conditions, it can impact your chances of approval.

Steps To Take If Your Application Is Declined

Identify the rationale

It’s crucial to contact the payment processor to grasp why your application was declined. This may assist you determine the precise issues you need to handle.

Review Your Business Practices

Take a more in-depth look at your business operations and identify areas which may have raised concerns for the payment processor. This might involve improving your credit score, implementing fraud prevention measures, or resolving any past merchant account issues.

Find A High-Risk Specialist

Search for a payment processor that specialises in high risk. These providers have the expertise to take care of businesses in industries considered high risk.

Prepare A Robust Reapplication

Collaborate closely together with your chosen payment processor to assemble all the required documentation and information required for a successful reapplication. Address any concerns raised during the initial decline and demonstrate how you have taken steps to mitigate risks.

At Merchant Advice Service, we understand the challenges you face when your card processing application is declined and the importance of finding the most suitable merchant services. Our team of experts focuses on high-risk merchant accounts and can guide you through the process. We offer personalised solutions for business owners, tailored to your business needs, helping you secure the payment processing you need. to find out more about how we can assist you, visit our High-Risk Merchant Accounts page. For more advice like this, visit our blog page!

Conclusion

Having your card processing application declined can be a stressful experience for business owners. However, it’s not the end of the road. Whether the issue lies with the card issuer or higher risk industries not meeting criteria, there are steps you can take to turn things around. Merchant Advice Service specialises in helping businesses like yours navigate the complexities of credit card processing, our experts are on hand today to help you.

FAQs

Can I appeal the decision to decline my card processing application?

Yes, you’ll usually appeal the outcome by providing additional information or addressing the concerns raised by the payment processor. Contact the processor for the specific appeals process.

Does it take long to get approved for a high-risk merchant account?

The approval time can vary depending on the payment processor, the payment methods required and also the complexity of your business. It can range from a number of days to a couple of weeks.

Will my poor credit history always prevent me from getting a merchant account?

While poor credit history can make it tougher to get a merchant account, there are specialised providers who cater to businesses with low credit scores or financial issues. These providers specialise in assessing the general risk and account information related to your business.

What should I search for when choosing a high-risk payment processor?

When selecting a high-risk payment processor, consider factors like their experience with high-risk industries, their reputation, the fees and rates they provide, the range of payment options supported, and their customer support quality.

Can I switch to an alternative payment processor if my application is declined?

Yes, if your application is declined, you’ll explore other payment processors that specialise in high-risk merchant accounts. make sure you address the explanations for the initial decline when applying to a new processor.

Are there alternative payment solutions available for high-risk businesses?

Yes, alternative payment solutions from sometimes unheard of issuing banks provide solutions such as offshore merchant accounts, third-party payment processors, or high-risk payment gateways are available. These solutions are specifically designed for businesses operating in high-risk industries.

Will I be able to continue accepting card payments during the reapplication process?

It depends on the precise circumstances and therefore the decision of the payment processor. In some cases, you’ll be ready to continue accepting payments, while in others, there could also be a short-lived suspension until the reapplication is approved.

What measures am I able to implement to stop chargebacks and fraud?

To minimise chargebacks and fraud, consider implementing measures like robust identity verification procedures, using fraud prevention tools, maintaining clear refund and cancellation policies, and providing excellent customer service to deal with any concerns promptly. This is particularly advisable for higher risk merchants, whereby chargebacks can be an issue.