Whether you are a main stream or high risk business, there are banks interested in processing your customer sales. The primary difference will be your eligibility for an onshore or offshore account. In general, your chargeback rate will be the determining factor. Offshore accounts or banks are usually more receptive to a higher risk business. The good news is there is generally a home for everyone if you can provide the necessary credentials which include:
- Merchant Application
- Certificate of Incorporation (EU Corporation required for offshore merchant accounts)
- Personal Identification (Driver’s License for US and Passport for offshore)
- Personal Utility Bill within the last six months
- Website Declaration indicating ownership of your website
- Processing Statements (6 months) reflecting your chargeback history
Additional items may be required based on the individual criterias of our banks but this information will usually suffice for a bank response.
Processing or discount rate is determined by several factors - business type, average transaction and most importantly, your chargeback rate. If you are a new company and cannot provide the necessary statements, you may still be considered but at a higher rate until you generate some positive history with the bank, at which time you may be considered for a lower rate and higher processing caps.
"If you are a new company and cannot provide the necessary statements, you may still be considered..."
Chargebacks are the single most important factor that affects your initial approval for a merchant account and the retention of that account once you are up and running. There are no short cuts around this.
With banks tightening their criteria in awarding new accounts, the cycle of getting an account, using it without consideration or responsibility and having it closed within a few months just doesn’t work. It makes more sense to be pro-active in how one sells which means authentic selling, customer satisfaction and ease of refund when a customer is not happy.
Having a clear descriptor and your phone number allows customers to reach you with a question or if they don’t recognize a charge. This alone can have an enormous impact. While we are not suggesting you encourage refunds, we do recognize that a refund will always be preferable to a chargeback.
Even in doing your best to keep chargebacks low, we know there will always be some that are not fair or deserved but this still hurts your business. The good news is we have several great tools that can help in bringing your rate down. It’s part of what we do for you.