Merchant Accounts for Home Business

Copyright © Philippe de Tiege
http://www.PhilippedeTiege.com


What is a “high-risk” merchant and how do you know whether-or-not you are in the category? If you are what can you do to change your status? Some examples of high-risk merchants include:

* Internet or E-commerce
* Telemarketers
* Travel or Cruise companies
* Internet Auctions
* Businesses that offer memberships to join their business.

If you own a high-risk business this is not a reason for immediate denial of operating with a merchant account. Although you may face a few, more challenges than other types of businesses in acquiring a merchant account. Other factors that are considered when you apply for a merchant account would be how long your business has been in operation, credit history, how you made payments with other merchant accounts or with other processors. This information will help those who are considering your account as to whether-or-not you will be faithful to your payments.

If you want to increase your opportunity to gain a merchant account here are a few tips that may help you:
* Take care of your credit report. If you have anything negative or that may be false, clear it up immediately.
* Do not lie or hold back any information on other accounts you may have had. If you had problems in the past be up front about them. You do not want them to find out something happened different from what you reported on the application.
* You may be offered the account but at a higher rate than what you want, be willing to accept higher fees if they offer it to you. In this way, you can prove yourself and eventually move to an account with lower fees.
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The amount of time you have been in business is important because those providers of merchant accounts want to make sure you know what is going on and what is expected of you. By looking at the time, you have been in business they can determine if you understand the risks you face and if you know how to prevent fraud and understand the dynamics of managing credit cards. If you have not been in business long this tells the merchant operator that you may not be ready for this type of account.

Of course, your credit report will show your worthiness to be extended credit as they look for how you have repaid loans, do you have any liens on properties or judgments that are against you. They want to see if you have filed any bankruptcies. If you have a positive credit score this will work in your favor even if your business may be new and if you can prove that you are financially responsible they will look more favorably to offering you a merchant account.
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