How Can I Increase My Chances of Getting a Merchant Account?
Presenting your business to a bank in the best possible way is the mission of Instabill. We sometimes encounter e-commerce business owners whose applications for a merchant account has been turned down from a competing payment processor. It could be because of a number a reasons: Industry type, credit history or chargeback rate.
Periodically, a merchant account gets declined and the merchant needs to understand what he/she may have done better. Increase your chances of getting a merchant account with these three hacks:
1. Good Financials, Credit History
A merchant’s credit history is a significant part of getting a merchant account, but a low credit score is not the be-all and end-all factor. We urge prospective merchant partners to find out their credit score to indicate whether they need to improve their credit to obtain a merchant account.
2. Have your KYC documents in order
During the merchant account application process, we ask for several KYC (Know Your Customer) documents such as a valid driver’s license or passport, the last three months of your personal and business bank statements and last three months of credit card processing among other documents. Having these KYC documents ready to submit benefits all sides.
3. Decide on a domestic or offshore merchant account
Domestic and offshore merchant accounts require different things.
For a domestic e-commerce merchant account, a website is not mandatory if the merchant chooses to sell his product(s) by mail order/telephone order (MOTO). MOTO businesses, however, do require proof of marketing materials and a marketing script of what the merchant is selling.
For an offshore merchant account, a merchant’s website must contain these 11 things:
Visa, MasterCard logos
Full color 3D Secure logos
Accurate description of goods and services
Merchant’s permanent establishment address
Export restrictions and regulations (if any)
Terms and conditions