How do you improve merchant account activation?

Answer 1

The first element we have to look at is the line of business. The Business types are classified into three segments across the merchant processing Industry. The factor which is the base of this profiling of the business type is the level of the risk involved. The risk in Merchant processing industry means the average chargeback or refund in the industry.

Low-Risk Merchants. These merchants sell products and services that don't create situations of returns and chargeback. The Average Return and Chargeback ratio in this type of category is less than 1%. Example of this kind of industry will be a school taking payments for Tuition fees or Govt agencies selling Train Tickets.

Mid-Risk Merchants. In this industry type, the possibility of return is a little bit higher than the Low-Risk Merchants.Most of the times the local and International Regulations favor this industry type. Example for the same is a Salon, Resturant or Gym.

High-risk merchants. This type of merchants offers products or services that are always are the honeycomb for Returns and Chargeback

These industry types create risk for the entire banking system as they have a history of involvement in practices like Transaction Laundering, Money Laundering, Miscoding and Forging documents.

Now that we know all the three different industry types it is the time for us to discuss what must be done to get approval from payment processing company for a Merchant Account.

Points to keep in mind throughout the onboarding process.

You need to make sure that you send all the legal documents that are asked by the payment processor.

The Merchant should never manipulate the information on the application form.

The documents should be the true copies in PDF format. Absolutely no manipulation.

The Sellers Website where the product and services are listed should look authentic and should have genuine content. Do not use a single page website. Put pages like About us, Service, Shop and contact us.

Add policies to the site like Privacy, refund, Cookies, and Terms

All the products and services should be listed with clear pricing, Specifications and Delivery Time Frame.

It is recommended to use a shopping cart as it helps in integration and also in maintaining records of sales.

The Merchant should never misrepresent the business model. If you sell X don't mention that you Sell Y. If you do so you are committing a Crime called Miscoding.

A good credit score is what most of the top notch payment service provider was looking at before underwriting any new Merchant

24/7 support system is recommended as most of the merchant account providers want customers to get support as soon as possible

Merchant account approval is a time-consuming process it is recommended that merchants keep patience and do not bomber the underwriting team by sending status request emails or making phone calls to check the status of the application.