A merchant account can provide your business with several advantages. First, it allows your company to accept credit cards. Online companies need to be able to accept credit cards if they are going to maximize their sales. However, what happens if your company would present too much of a risk to a merchant account provider?
You Might Pay More Per Transaction
Merchant account providers charge a fee for each credit card transaction that is processed. High risk account providers may charge an additional fee on top of that to make it worth their while to process your transactions. If your company has a bad credit score, you have accepted stolen credit cards or have done anything else that could get the account provider in trouble, expect to pay a premium to get an account.
It May Take Longer to Get Your Account Approved
It typically takes a few days to get your account application approved. If you are a higher risk than a typical company, it may take longer to approve your account because extra documentation may be needed. Interviews with the owner of the company or other company officials may be necessary as well to determine exactly how much of a risk you would pose to a merchant account provider.
Your List of Merchant Account Providers Will Be Smaller
The number of merchant account providers who will provide an account will be lower for high risk companies. This means that it could take a long time to find a provider willing to work for you as well as submitting applications to multiple account providers before finding a company that is willing to partner with your business.
How to Pose Less of a Risk to a Merchant Account Provider
There are steps that you can take to lower the risk that you pose to a merchant account provider. For example, you could take steps to increase your company’s credit score or take steps to prove that your company’s revenues are going to be consistent for the next several months or years.
Getting a merchant account is not easy. However, it is something that you will need if you want to accept credit cards. Therefore, it is important to know where you can turn when getting an electronic cigarette merchant account or another type of merchant account is the next step toward growing your business.