Applying for a high-risk merchant account demands an understanding of the documentation needs, which might be imposed by the acquiring bank or payment processor. The essential papers vary, dependent on the business type, financial stability, and processing history of the firm.
The following records are generally sought when applying for a high-risk merchant account:
- Vital business registration and tax documents, including articles of incorporation, business license, and tax identification number.
- Bank statements – including the most recent three to six months of bank statements for the business.
- Processing statements, which comprise the most recent three to six months of processing statements for the business, where applicable.
- Identification and address verification papers – comprising government-issued ID, utility bill, or bank statement for the business owner or authorized signer.
- Website information, including a comprehensive description of the products and services, the website URL, and screenshots of the website.
- Business plan – detailing the business model, target market, marketing strategy, and projected financials.
- Chargeback ratios – consisting of the chargeback ratios for the business over the last three to six months, where applicable.
However, it’s important to take into account that not all acquiring banks and payment processors have uniform requirements. This is where Merchant Ground can prove to be of great assistance, with their established relationships with acquiring banks and underwriters, securing the best possible terms for their clients. Merchant Ground also has a less demanding documentation process compared to other providers, simplifying the application procedure for high-risk merchants.
