It should be easy getting a merchant account. After all, these providers will make money with every single transaction you make. But really, do you think it’s that simple? The payments business is incredibly competitive, and of course, processors want your business – but that doesn’t mean they won’t do their due diligence when approving applications.
Below are two steps that will help increase your chances of getting your application approved:
1. Organize your financial statements.
Financial statements are the single best tool you can count on to leverage the best possible approval terms. Some people prefer not to provide financial statements to support their merchant account application. In most cases, these are medium-sized companies that are privately owned and very meticulous about their privacy. Company financials are, after all, confidential business information.
But from the view of a payment processor, this is a crucial mistake. Above anything else, most underwriters want to see proof of an applicant’s financial stability so they can assess the company’s chances of continuing with success into the future.
On the other hand, merchants in a startup position would do everything to have a strong balance sheet as they know it would make all the difference in their approval.
If you have worked so hard to attain what you have today, not leveraging this successful effort to get the best approval terms is obviously a poor decision. So make use of your financial statements, or get ready to put up a security reserve. Pull out your most recent balance sheet, profit and loss statement, as well as any notes your accountant may have made.
2. Check your processing background.
A positive processing history is yet another very effective way of leveraging your application. More money traded plus fewer chargebacks and you have a stronger case. It’s simple: if you’ve processed credit cards in the past and were successful, then why would it be any different in the future?
When available, supply no less than three months’ worth of processing statements. Six months is going the extra mile, unless you offer high-risk products or services or you trade high volumes. In such a case, an entire year’s worth of statements will be necessary.
It requires some extra work, but that’s better than having to build up a security reserve.
Your merchant account sales representative is, at the end of the day, your best tool as you work on submitting your application. Ask all questions you have in your mind and pay attention to the answers. If everything sounds so rosy, be suspicious.
You have to be totally honest with your expectations, and for any doubts you may have, make sure to raise them upfront. The processor you’re working with should want to help you get approved, eventually leading you to a mutually beneficial longstanding partnership.