How Can I Accept Credit Cards if my Bank Will Not Approve my Merchant Account?

For you to accept payments by credit cards from your customer, you need a merchant account. The merchant account allows you to process credit card transaction at a certain fee. Every merchant processor has different criteria for approving your application for a merchant account. In case your application for a merchant account gets turned down do not throw in the towel. You can try other merchant processors and payment gateway services to increase your chances of getting a merchant account.

In the world of business today, numerous transactions are conducted online that involve credit card payment. Some banks do not offer merchant accounts, while others might reject your application. The main reason why your application for a merchant account may get declined is because of the presence of high chargeback rates on your business. Businesses that have not qualified to open a merchant account have an option of using the payment facilitator services.

Most online credit card transactions happen fast and seamlessly. The credit card data is sent to the merchants acquiring a bank by using a payment gateway, such as the NMI Gateway, the information is then sent to the company that owns the credit card then back to the customer’s bank that issued the credit card. Here the bank may approve the transaction or decline. If it is approved the money is then sent to the merchant account. Using this service, you can be able to accept payments even without a merchant account.

This type of high risk payment processing deals with many merchants and puts them under one roof. In this case, the individual merchant does not have to open a merchant account since he or she is under one master account. Unlike in merchant accounts, a merchant applying to join a payment facilitator service will spend lesser time and will need little documentation while applying. The process is simpler and faster since the individual merchants do not have to apply for their merchant accounts.

Merchants who use a payment facilitator service are part of a more extensive merchant account. This means that they will only need to pay a fee that is set at a flat rate. However, if you have many transactions, you will pay a higher fee since the charges are based on the number of transactions. The rates are made for all, unlike in a merchant account where the rates are customized to fit the individual needs and demands. Merchant accounts offer the merchant the ability to transact larger volumes of goods and services as opposed to payment facilitator services.

Payment facilitator services come with customer service that is mostly by email or online. This service is ideal for merchants who would love to avoid the comprehensive and lengthy application process of a merchant account. It is also suitable for those merchants who have unsuccessfully tried to apply for a merchant account. However, businesses that deal with a large volume of goods and services may find themselves paying more for the transaction fee since the service requires one to pay for each transaction.