If you’re a business owner, you know that having the right merchant account stripe can make all the difference. The process of obtaining one can be complicated and confusing, but there are several factors that determine how easy or difficult it is for your company to get approved for a new card processing account. In this article, we’ll discuss some of these factors so that you know what to expect when applying for one or renewing an existing one
Business location and type.
- Location: It’s important to know where your business is located. Will it be a physical store or an online store? You’ll need to find out if the location of your merchant account will impact what kind of equipment you need, as well as whether or not there are any specific requirements for payment processing services (like MasterCard/Visa).
- Type: If you can’t yet tell us what type of business you’ll run, ask us! We’re happy to answer any questions about our services and help guide you through the process.
Average order value.
The average order value is a measure of the average size of a customer order. It’s used to calculate the average profit per sale, which will give you a sense of whether or not your business can sustain itself through sales alone.
The higher this number is, the more money customers are spending on each transaction—and thus earning for themselves! If your customers tend to spend less than five dollars per purchase (or any other specific amount), then it may be time for them to start shopping elsewhere.
Risk level.
The risk level is based on the type of business and the type of transactions. High-risk merchants are more likely to have chargebacks, which means that credit card companies want to see a history of low chargebacks before they will approve a merchant account.
The good news is that there are ways for you as an entrepreneur to lower your risk levels by doing things like increasing your business’s financial assets, reducing fraud losses and improving customer service.
Cardholder data storage.
Cardholder data storage refers to the security of the information you store on your servers. You need to make sure that the information is encrypted and has a firewall in place. The merchant should also have a way to backup their data, so that if something happens, they can still access their records.
Processing history.
Processing history.
This is the most important factor in getting a stripe merchant account. If your company has a bad or high-risk past, it’s going to be hard to get approval from the processor and will make your life much harder as an entrepreneur. A good processing history shows that you are reliable and trustworthy, which will help with future negotiations over fees and other terms of your contract with the merchant account provider.
Companies in green industries sometimes find it difficult to obtain the services of a merchant account provider due to their industry’s high chargeback ratio. This is because the companies typically have more small transactions, which are more likely to result in chargebacks. The higher the chargeback ratio, the less likely you are going to be approved for an account with a traditional bank or credit card processing company.
In some cases, companies in green industries can still get merchant accounts but must pay higher fees than those who work with traditional banks and credit card processors.
High risk merchant accounts are available for most types of businesses, even those that are considered high risk by traditional financial institutions.
- You have a large volume of transactions. If your business handles large amounts of money and has been in operation for at least one year, it’s likely that you can get a merchant account without having to jump through any hoops or fill out any forms (although there may be other requirements).
- You’re already listed as an authorized user on another company’s credit card processing account. It’s also possible to get approved as a new user if your old company has given permission for its products/services to be used through your own website or app—this is particularly true if they provide promotional discounts or other incentives related with their brand recognition; however, keep in mind that once someone else starts using those same perks with their own customers’ credit cards then there won’t be any longer need for yours!
The process of obtaining a merchant account for your company can be a long and confusing process, but understanding the terms and conditions of these accounts is vital to choosing the right one for your company.
There are several reasons why you may qualify for a merchant account:
First, you need to understand what type of merchant account you are looking at:
- A pre-paid card (also known as an ACH) is like a debit card that allows you to make purchases online by tapping into funds stored in your bank account. You can use this type of card anywhere Visa or MasterCard accept cards; however, some retailers may only accept them at specific locations such as gas stations or restaurants.
- A pre-paid credit card (also known as an EFT) is similar to an ACH except that it allows you access funds from your checking account instead of just from savings accounts or CDs.
Conclusion
The main takeaway from this article is that if you are looking for a merchant account, it’s important to understand what you want and how much risk you are willing to take. Your business may be high risk, but there are also companies out there that specialize in those specific types of businesses—so don’t let your industry be the reason why you don’t get the services that could help grow your business!
