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Tips to Get High Risk Merchant Account Approval


The term high-risk merchant account or high-risk payment is assigned to a merchant account or MID for businesses that may accept credit card payment transactions and are considered risky by various banks and credit card processors. They are also called high-risk businesses, but not necessarily because the business itself is risky.
There are many examples of high-risk merchants such as telemarketers (inbound or outbound), internet/e-commerce businesses, merchants in the travel and cruise industries, internet auctions, and businesses alms membership clubs. In this blog, you will learn some additional tips to get high-risk merchant account approval.
But owing to a high-risk business does not mean that you won’t be able to open a merchant account. It does mean, though, that it may be more assertive to set one up. Merchant account providers such as banks and independent sales organizations will also acknowledge how long you have been in business, your credit history, and any previous merchant accounts you have held with other processors.

high risk payment

What are the tips to increase your high-risk merchant account approval eligibility?

To increase your merchant account eligibility, one needs to follow certain below-mentioned tips such as –

Ensure a positive credit rating

Remove any past bankruptcies, late payments, or liens from your credit report before you administer for a merchant account.
To attain your credit report, contact a credit reporting bureau such as TRW or a company that administers merged credit reports from major reporting agencies such as Equifax, Experian, or Trans Union.
Write to them, explain that these matters have been cleared up, and ask that they are removed from your credit report. Whether you have a small or large business, having a good credit rating will make a lasting and satisfying effect on a transaction processor.

Be honest about preceding merchant accounts, bankruptcies, liens, or judgments

By endorsing past financial challenges, you improve your credibility and may confront one less barrier to opening a new merchant account. You cannot hide information that is part of the public record.

Be willing to pay higher fees or domicile special account requirements

If you require to abide by special constraint or pay slightly higher fees to open a merchant account, by all means, do it! It is worth it to administer your customers with as many non-cash payment options as possible. It will benefit you to generate revenues and stimulate impulse purchases.

Shop around for a credit card processor that best suits your demands

Talk to several different processors and do not be afraid to ask questions. Find out about –
Discount rate – This is the percentage of each transaction paid to the merchant account provider. If your monthly charges are less than a certain volume, then the processor may charge a higher percentage.
Transaction fee – A flat rate charged for each transaction processed for the business.
Equipment – Some examples of this may include, point-of-sale terminals, printers, and peripherals. Also, find out about installation costs.
Monthly minimum fees – These are the minimum fees that the merchant account provider collects each month from the merchant if the merchant’s discount rate and transaction fees do not add up to the monthly minimum stated on the original merchant application. It is usually about $25 per month if the monthly minimum volume is not reached.
Reserve fees – If your credit history is in question, or if you own a new or high-risk business, you may be prescribed to set up a reserve account, which protects the processor from any future losses. The reserve account is estimated as a percentage of your sales.
Chargeback fees – These are the costs charged by a processor to canvas disputed charges.
E-commerce – If you are an e-commerce merchant, Ask your prospective processor about the costs of storefront solutions that you must have to adequately operate your websites. These may include things such as shopping carts, web hosting, payment gateways, virtual terminals, virtual checks, databases for fulfilling orders, customer tracking, and a way to calculate tax and shipping charges.
Operating a high-risk business does not prohibit you from being able to process credit cards. When you shop around for the right high-risk payment processing organization, go into it knowing what to foresee. Follow the above strategies to have a smooth experience in opening a merchant account.

Do Your Research to get High-Risk Merchant Account Approval?

The first thing that any seller should be doing when they are arduous to secure a merchant account is to do some research. It should go without saying that overseeing your research is incredibly crucial as it is going to help you make the right choice specifically for you.
High-risk businesses often get into issues when dealing with their merchant accounts and that can undoubtedly slow down business. However, with a little bit of research and planning, you can avert all of that before it even starts. You want to be certain that you can tackle any high-risk problems head-on and even more predominately, you want to be sure that you are finding a reputable partner that is going to work in your interests.
At the same time, carrying out good research is going to mean that you do not get overcharged or fleece for other terms, as you will always know the danger signs to look out for.

Reputable Partner

These days, there are endless different options online for your merchant account provider. But while there is seemingly plenty of choices, not all of these are going to be trustworthy and reputable.
In addition to this, many providers have certain regulations on the type of high-risk company that they get convolute in and how it might affect them. So, you require to take your time to make sure that when you finally find the right partner for you, they are going to work in your best interests.
That way, you are not wasting your time and efforts, instead of getting the most efficient and valid approval.

high risk merchant account approval

Question Preparation

Once you have finally settled on the provider that you are going to partner with. You can begin preparing for your final approval. You are going to get asked a series of key questions and being fully ready to answer these properly can be a huge benefit to account approval. At 5 Star processing, we highly endorse that you get ready yourself for the following questions such as –
  • Do You Process Credit Cards?
  • How Long Have You Operated?
  • What is Your Monthly Volume?
  • Have You had Merchant Account Shut Down Before?
  • Are You On the TMF List?


All merchants necessitate going through a rigorous compliance check to be approved for a merchant account. By working with a reputable payment service provider and keeping these above points in mind during your application process.
You will be well on your way to getting your account approved and accepting online payments. You can always trust and contact us any time and fill out our online form to get the best high-risk payment services.


Q 1: Can you get a bad credit merchant account with instant approval?

No, you cannot get a bad credit merchant account with instant approval. Despite those “instant approval no credit checks”, you will see occasionally, it always takes longer to get the final approval for the bad credit merchant account. A bad credit merchant account needs a minimum of three to five business days to be approved. The process can take as long as 3-5 weeks. That is the reason you cannot get instant approval from a bad credit merchant account.

Q 2: Can you get a merchant account with instant approval & no credit check?

When it comes to talking about getting a merchant account with instant approval, you can be tempting and frustrating. This is because there are so many companies claiming to have instant approvals. Hence, it can take some time to get a merchant account but not instant.

Q 3: Can I Speed Up a High-Risk Merchant Account Approval Process?

To increase the speed of the approval process, you need to work with a reputable merchant account provider. This specializes in high-risk processing. While working with a partner that has a proven experience and record in your industry will help to expedite the signup and approval process.

You should also ensure that all paperwork is in good order. Moreover, you should provide far more data at the time of applying for a merchant account as an owner of a high-risk business. These two points are important to follow for you if you want to speed up the high-risk merchant account approval process.

Q 4: What is Instant Approval?

In actuality, as truly instant approval, there is no such thing as any type of merchant service. account. The reality is that it always takes place longer to get final approval for the high-risk merchant account than it does for low-risk businesses. In most scenarios, old low-risk trades can estimate to be approved within two days. However, typically, a high-risk merchant account requires a lesser of 3 business days to be approved.


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