Did a credit card processor recently deny you a merchant account after deeming you “high risk?” Are you thinking about applying for a merchant account but don’t know if your business type is too risky? Well, we have strategies that can turn your Colorado Springs high-risk merchant account into a safe and reliable one. We have over 8 years of experience in working with various underwriters, and we’ve learned several safeguards to ensure we’re taking a good chance on you!
Daily Discount
In the payment processing industry, the “discount rate” is the percentage rate we charge you for our service. Usually, the processor debits the discount rate from your business checking account at the end of each month. Now, if you have a bankruptcy on your record or you have a low personal or business credit score, the underwriters will be concerned about being able to collect the payment processing fees at the end of the month. So if you’re a Colorado Springs high-risk merchant account, we may mutually opt to take out the fees daily and just deposit the net credit card sales. This minimizes the risk associated with the merchant account and increases the chance of getting your merchant application approved. 
Restrategize Rates
A payment processor is more likely to approve a high-risk business with restrategized rates. Let’s say you accept $10,000 in card payments a month and are being charged a 1% rate for every transaction. Your processor is only making $100 a month on $10,000 of risk. However, a 3% rate would mean that the processor is making $300 a month for the same amount of risk. With this rate plan, the underwriter is still analyzing and acknowledging the risk, but they are more willing to take a gamble on the approval of the account. A higher return of profit justifies the higher risk. Therefore, you’re chances of acceptance increase if you are willing to discuss a rate variation with your merchant services sales agent.
Temporary Reserves
Also, a possible strategy your potential merchant service provider may suggest is holding reserves. Think of this as putting a security deposit on an apartment, except you get it back before your lease ends! For example, a 5% portion could be taken out of your daily revenue of your business’s credit card sales. Then, the processor holds these funds for about 6 months. This ensures they’ll be protected from possible chargebacks (cardholder disputes). Finally, you’d receive the reserves taken from January to July. Then, you’d receive February’s reserves in August, and so on.
Tired of Being a Colorado Springs High-Risk Merchant Account?
Don’t worry, you won’t have to deal with these inconveniences forever. Over time, you’ll develop a positive relationship with your processor with the solid business practices that we teach you. After proving you’re not a risk, we’re happy to give you monthly discount billing, reduced rates, and refund your reserves! We’ve seen many a Colorado Springs high-risk merchant accounts, and we are willing to work with you to fix yours. Schedule an appointment today to sit down with our staff and see what we can do for you!
