E-commerce, MOTO and POS
Domestic and International
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Startup merchant accounts: We can help you
One of our points of pride here at Instabill is the number of acquiring banking solutions that enable us to offer startup merchant accounts to high risk merchants. Of course, high risk businesses can be slightly more challenging for which to find solutions, but we have always believed that legal and legitimate businesses deserve the right to process payments like any business.
Why banks are pensive about startups
There are several reasons acquiring banks are sometimes lukewarm when taking on startup businesses.
- Lack of processing history: This is arguably the most important factor that we and our acquiring banking partners. Little or no payment processing history raises red flags.
- Not enough capital: Acquiring banks love businesses with money in the bank. New businesses often don’t have enough or even run out of the capital they need to sustain themselves.
- The first 6 months…year…two years: Many startups can be unpredictable and volatile, and fail within the first two years for a myriad of reasons.
‘What will my rates be?’
The first question we get when speaking with a startup merchant (or any merchant): ‘What will my rates be?’
We understand. Neither we or our acquiring banking partners can quote you a rate until we get a better feel for your business, until we can examine the necessary KYC documents which we require.
Rates are assigned on a case-by-case basis by acquiring banks. Because startup merchants are regarded as high risk, they can likely expect to pay a slightly higher rates and even a rolling reserve. However, we freely admit that when a startup merchant has faithfully, dutifully complied with his/her requirements for at least a year, the merchant has the bargaining power to negotiate for lower rates.
Let’s have a conversation
Among high risk payment processors, Instabill is considered old school: We prefer to have a one-on-one conversation with you about your business so we can detail the possible startup merchant accounts we can offer. We urge startup merchants to complete the form and/or speak to one of our merchant account experts at 1-800-530-2444.