Do people actually get rejected when applying for (non-high risk) merchant accounts?
 

Is there any reason why someone would get rejected when applying for a merchant account?

I'm not talking about for casinos, adult, or anything high-risk, just mainstream website credit card processing.

Who gets rejected, and why?

I assume that some people must get rejected when applying for a merchant account

There are only two reasons I can think of:

1. If you have previously had a merchant account and it was terminated.

2. If you have really shitty credit and/or maybe you filed bankruptcy sometime in the past few years.


any others?

Hi,

It is rare that we cannot get someone approved. However, sometimes, they get declined if their credit is horrible or if the web site is not running when the bank goes to approve it or they were previously terminated.

Mitch

Why would having bad credit cause someone to be rejected? Is having a merchant account somehow extending a line of credit to the merchant?

Hi,

A merchant account is issued to the business. However, essentially is is consodered a line of credit so the principle is responsible for the account.

Thank you, Mitch Farber

sometimes eletronic products can be a headache.... considered highrisk by many banks!

And when you reach big volume (above $300.000 a month) lots of banks will cause you problems also...

Yes usually because of bad credit....

Terminated Merchant File or the T.M.F. its like the book of banned people from casinos in Nevada. Credit is not really an issue, most of the time. Just be a responsible merchant when or if you do get a merchant account.