How Business Models Affect the Approval Of High Risk Merchant Accounts

A business model includes components such as sales method, future delivery, target market, customer satisfaction, method of billing and various other components. If a bank sees risks emerging from any of these components, it will qualify your business as a high risk business.

High risk merchant account applicants will have to face a few problems, which include:

·         A business model qualified as high risk will be subject to limited monthly sales volumes

·         Banks may charge a higher free and higher discount rates corresponding to the level of risks.

·         Banks may sometimes decline an application altogether because of the nature of business. This mostly happens because of the potential chargeback liability.

·         Banks may not have the necessary customer support and infrastructure for reducing or avoiding chargeback and so they may decline your application.

In such scenario, the best option with businesses is seek help from High Risk Merchant Account Providers.