Every business owner wants to have a merchant account for the globalization of business. To do this, various merchant account providers are there in the market that put their all effort to meet the ends. The account provider companies provide all the information at one place regarding, high-risk business, merchant account, payment processing, managing those account, and debit and credit card processing. Now the question arises how to apply or get a merchant account. The basic question that every trader asks—at least in theory, people want to read about it. Here is a solution—apply with the merchant account provider. They will complete all the procedure for application; deliver it to the underwriting department for application review, once the application is approved, you will give authority to receive online payment.
The above process sounds very easy but finding a high-risk merchant account provider for the business is quite a difficult task. Most banks and processors deny offering merchant accounts—so you need to find high-risk merchant account provider.
How to Find Merchant Account Provider
If you are an owner of the retail shop, almost every bank and merchant account processor will give you access of merchant account but if your business falls under high-risk category—no one will show up. Therefore, banks will provide merchant account to the retail business as per the regulatory. You need to ask a simple question to the bank—do you provide merchant accounts for high-risk businesses. Moreover, note down their answer because often salesperson do false promise but when you fulfill all the application, their underwriting department will reject it.
Hence, there is various high-risk merchant account providers are there in the market—you need to search for them or ask from banks.
Merchant accounts are the third party account that allows business to accept credit or debit card in a transaction. The business needs to register for a merchant account so that they can accept worldwide payment. Whereas, the payment gateway acts as a proxy between the merchant account and customer and merchant, and acquiring bank that handles the merchant account.
Either starting trader or established business, they both lack in information about things required for applying for a merchant account in the UK. What documents you need to collect, what pitfalls come in place, and reason to apply for a merchant account. Every business owner makes sure they qualify for a merchant account in the UK. Here are some tips on how to get a merchant account for small or big company, high-risk or retail shops etc.
- Gather all the financial data because it is the single tool that turns the table and brings the best advantage, the terms of approval.
- Business details required for the gateway
- The account provider will require data about the business and details of traditional bank
Some administrative details also require like a certificate of company incorporation, registration of sales tax certificate, amenities bill, establishment certificate and its registration, partnership agreement if any(mandatory), rent agreement or lease agreement, and VAT registration in the UK.
Financial and personal Details Required By Banks
- Last income tax return
- Bank statements
- Company auditing report
- Personal details of owner or business manager will require for scrutiny
- Identity proof of resident of UK or passport in Case of outside person, it can be driving license, passport, and introduction letter of an existing banker.
In place of residence proof, one can provide electricity bill, telephone bill, a letter from the bank.
Business is off two types high and low risk, different size small, medium and large business entity. Businesses have different types of goods and services to offer or sell. Some goods and services are falls under special category which are known as high risk businesses. Any goods and services in which your business is trading whether it is fitness supplements online dating services, tobacco, money laundering, etc. is known as high risk businesses. These businesses face many issues with merchant payment processing system, because of chargebacks and risks. Companies with processing revenue lower than $1.2 million annually will find certain issues securing a high risk payment processor because most providers are focused exclusively on larger businesses.
Demonstrate Substantial Capitalization
One of the best ways to secure a payment processing provider, even for a high risk merchant, is being well-capitalized. With sizeable capital resources, underwriters and banks are more willing to provide payment processing services. For a business, substantial available capital signals to payment processors that your operations will be funded and any issues regarding fulfillment or payment can be addressed in a timely manner.
High risk businesses without money in the bank are at a particular disadvantage when seeking merchant payment processing services. Even with nearly six figures in monthly revenue, many banks and underwriters will refuse the business of many high risk industries, such as online gaming, credit rehabilitation services, and nutritional supplement providers. Without capital in the bank, underwriters and banks will worry that any issue, like a product recall or data breach, will result in significant financial losses.
Merchant Account Services by Radiant
The payment made by credit card involve the transfer of funds to a merchant account and you (the merchant) directly holds the payment in their bank. If you want to accept the payments through credit cards for your online store, you will need either a merchant account of your own or the services of a third party processor like PayPal.
Some quite different types of options are available while choosing online merchant account. Some of the organization or companies charge reliable fees for merchant account solutions while other charge enormous fees for setting up and processing fee.
Check out all the terms and condition while selecting the merchant account that is right for your business and suits your all unique business needs.
Our radiantpay.com provides an ideal solutions to Integrated a merchant account into your website. It also allow to accept credit card payments directly through your website and deposit payments directly into your personal or business checking account automatically and some time on same business day. We have relaxed transaction fees and monthly account maintenance fees. It’s easy to sign up, and once you are approved it’s easy to integrate your payment gateway page and only takes a few minutes to get started.
High Risk Merchant Account
In the business world, many businesses and organizations are considered risky. So what if your business is risky? Have you already been turned down by credit card processor? Well, yet you didn’t lose anything. There are many high risk merchant account providers, they are being expertly in what you need. Every merchant account provider has a policy regarding high risk. If your requirement is settled in that policy, you may get approval for a merchant account. An approval of merchant account is wholly depends upon policy, if the guidelines are strict, then you won’t get approved. If the guideline is hassle-free, then you’ll have yourself a merchant account.
Fees for this account is higher than other standard merchant accounts. Where you have to pay an anticipated card processing fee of around 1.2-2.5% for a standard account, you might expect to pay around 4.5% as a high risk merchant. The fee is really depends upon the specific circumstances. Very high risk could track about 10% or more on each transaction. If you are struggling to find a processor to work with you or your business. It’s time to speak up with Radiant pay. Sign up today to get your high risk merchant account.