Merchant account approval is by no means automatic for UK businesses. Factors such as the age of the business and the industry you operate in are considered. Certain industries are considered riskier with some such as online gambling and some types of e-commerce requiring special ‘high risk’ merchant accounts with extra provisions.
Industries such as telemarketing, travel, ecommerce and membership type businesses are other industries considered to be high risk.
Improve Chances of Approval
As with many things concerning merchant accounts and business in general, a lot comes down to research. Research the most suitable type of merchant service providers for your business.
Will you be accepting card payments through a card machine? Will any payments be taken online or over the phone (card not present)? As well as ensuring you get accepted, selecting the right merchant account will make sure you get the best deal.
2. Keep A Clean Record
As when applying for personal financial products, merchant services providers run rigorous checks to ensure the suitability of your business. They check whether loans have been repaid and for judgements and bankruptcies. If your accounts look in good shape you stand in good stead for approval.
3. Be Willing to Accept Higher Fees
If you want to accept card payments it may be that you have to accept higher than average fees. It could be down to the type of payments you are processing or the frequency of payments. If you are a seasonal business you may have to pay more and if your industry is higher risk that puts up prices.
Of course, you have to look at the bottom line but don’t rule out accepting card payments. The high fees may only be temporary and the extra business may well be worth it. You can try to renegotiate the deal once you have built a relationship with the merchant services provider.
If you have any questions please leave a comment or use the contact form.