Practically all day, every day, we speak with merchants who need a high risk merchant account. Off the bat, we’ll start asking questions about their business to get a better feel for what the best possible payment processing solution is for them.
Instabill has been in the business of providing high risk merchant accounts for nearly 20 years, and continues to welcome merchants of all risk levels to see which of our solutions may be the optimal fit. But if there is one thing we’ve learned in our tenure, it’s that fraud continues to morph into many forms. Thus, with the obligation of protecting ourselves and our acquiring banking partners, we ask several pertinent questions and request several know-your-customer (KYC) documents.
So here’s what we want to know, and why we want to know it, all in the name of knowing our merchants and stamping out the bad actors.
Processing history
Each piece of information we request is important, but processing history arguably carries the most influence. We need to know where (or if) you had processed transactions prior to applying with us along with:
- Whether this an additional merchant account?
- Are you changing payment processors?
- Was your merchant account shut down?
Each of these points plays a pivotal role in the fees and rates you will pay upon an approval.
Are you the sole owner/proprietor?
Also of critical importance, the acquiring bank with which we match your business needs valid identification of each person with a stake in the business’s ownership. Additionally, for a domestic high risk merchant account, each owner must have a social security number (an EIN number is not acceptable, unfortunately). If not, your other option is an international or offshore merchant account.
In what country are you registered?
Registering your company in certain countries and regions is a currently huge issue in cross border payments. For example, gone are the days when U.S. businesses could accept an unlimited amount of transactions from European consumers. Now, businesses outside the European Union that use EU acquiring banks must register within an EU country with office space, an EU bank account, phone number and staff to field inquiries (which Instabill can arrange).
What is your monthly processing volume?
Volume is an important issue especially if you’re seeking a domestic high risk merchant account. Since domestic banks offer daily payouts, they impose volume caps whereas offshore and international banks have weekly payouts and offer generous (and sometimes none) volume limits.
How are you accepting transactions?
Are you accepting transactions solely via e-commerce, mail order/telephone order (MOTO) or both? This is a crucial part of a bank’s risk management process since businesses that solely opt for MOTO and virtual terminal use tend to carry more risk than straight e-commerce businesses. A merchant’s website is easier to monitor for fraudulent activity than a merchant who operates only via MOTO.
Need a high risk merchant account? Call us. Today.
We freely admit it: When it comes to customer service and support, we are of the old school. When merchants need a high risk merchant account, we prefer a conversation to start the process. It enables us to get a feel for your business, your needs and your goals. In the small event that we cannot find a solution, we’ll know right away so that we’re not wasting anyone’s time.
Our merchant account experts are waiting to speak with you at 1-800-530-2444 We’ll outline your options and within a few minutes, know which acquiring banking option is best for your business.
