MERCHANT STRONGHOLD HIGH-RISK MERCHANT ACCOUNT SERVICE PROVIDER
HOW MERCHANT UNDERWRITING DIRECTLY AFFECTS YOUR BUSINESS
To acquire a customary Merchant Account, your business must experience go through a wide analysis process called merchant underwriting. Sorry to say but some Merchant Account Provider doesn’t satisfactorily underwrite businesses, which can rapid issues down the line. Merchant Account underwriting is clear by an individual or team of high-risk analysts and in general takes two days to a week to complete, depending on the provider. For businesses needing a quick fix, there are options that don’t require any underwriting — but those have their own drawbacks. More on that later.
POOR MERCHANT UNDERWRITING AFTER EFFECTS Without an in-depth analysis, your High Risk Business may suffer from one or all of the following: Incorrect Limits Whether you have insufficient or excessive limits, it’s a problem. Limits that are too low will hinder your business from processing your regular transaction amounts, which may prevent customers from paying on time and constrict your cash flow. If limits are set too high, you can get hit with major fraud charges you do not cover.Limits
Hidden Volume Fees Some providers will give you a limit, but let you exceed it without warning. The penalty? You pay an additional fee on either the volume that passes over your limit or on the entire processing volume for that month.
Downgrades If your account is set up without certain features and security measures, you’re susceptible to transaction downgrades, which mean you are unnecessarily paying higher transaction costs. Providers often fail to set up accounts with these features because it means more money in their pockets on the downgraded transactions. Some businesses opt for an account with Payment Facilitators, such as PayPal, Stripe or Square, which bypass merchant underwriting altogether. While they may seem like a better option, these alternatives have their own pitfalls.
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