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| Ipaytotal – HIgh Risk Merchant Account Provider |
Businesses that falls in high risk industry can still secure a merchant account. It may be challenging but it is still possible to get a payment processing solution for these type of businesses.
WHAT ARE THE HIGH RISK MERCHANT ACCOUNT REQUIREMENTS?
The general requirements are as follows.
- The merchant account applicant must be legally incorporated or legally registered in the country they are applying for.
- The applicant must maintain a physical address in the country they are applying for.
- The applicant shall have a corporate bank account where the funds will be deposited.
DOCUMENTS REQUIRED
There are several application documents that will be required to submit such as.
- A duly filled up application form which contains the basic information of the applicant’s business and its registered owners and company officers, tax ID, contact details (telephone number, email, and address), company website, bank details, the volume of processed transaction, average sales amount etc.
- Personal guarantee by the principals of the said business. This is to limit the liability of the processors in case of fraudulent transactions.
- Business License or permit issued by the Federal or the State is required to be submitted.
- A voided permanent check containing the pre-printed business name of the applicant, IF this cannot be provided for some reason, a bank letter from the bank manager stating the bank account details may do.
- A copy of the W-9 form which is the application form of the Federal Tax ID. This may be substituted with the SS-4 form.
- Financial statements for both company and personal for the two latest years.
- For merchants with previous processing provider, a copy of the latest three or six months processing statements is required.
ADDITIONAL REQUIREMENTS AS NEEDED PER TYPE OF MERCHANT ACCOUNT
Additional requirements vary depending on the type of merchant account to be applied.
This type of business can be registered worldwide with exceptions from few countries that are currently faced with sanctions, embargo or war.
- A website containing all the services and plans including subscription time frame. A terms and condition page, as well as privacy policy, must also be found in the company website. A cookie policy is required if one will be opening up in Europe.
- A disclaimer on the homepage stating that the company is an independent support company not associated with any software and hardware brands unless specified and must not put any references to any brands anywhere on the website.
- The applicant should have a toll-free number which must be visible on both the homepage and contact us page.
- A business plan must be created because a professional company must have an action plan for the next couple of years.
- And lastly documents to be submitted must be all original and not fake nor tampered. Underwriters have this unique talent of catching even the smallest of manipulation of information submitted and it can possibly be the reason for the decline of the merchant’s application.
This type of business is the type of business that takes prepaid payments from clients for sending them on a trip, a tour, a cruise or other type of destination-based service. This also falls to the high risk industry.
- A good cover letter must be submitted together with the application form. In here can be stated the strengths of the business and possibly add some positive light to the application and also state the company’s expertise in the industry.
- Processing statement covering one year’s worth of credit card processing statements. This will be used by the underwriters to have an idea of the company’s sales volumes, number of refunds, number of chargebacks and reasons for the said chargeback.
- Keep the average ticket price low by taking a smaller deposit upfront and bill the balance closer to the date of travel. Future delivery can be reduced by limiting how many days in advance can clients make a reservation.
- A gaming/gambling license must be secured before applying for a merchant account.
- Make sure that the company is not registered in those countries that prohibit online gambling.
- Pharmacy merchants must obtain a pharmacy license for the business.
- Sell only non-controlled substances and avoid products that are intended to be used with the supervision of a specialist and also avoid products requiring special storage conditions.
- For prescription required drugs it is mandatory to require doctor’s prescription.
- Information regarding the drugs sold must be supplied to the customers.
- Only products that have been approved by the relevant authorities in both the country of the supplier and customer must be offered.
- If the website offers online consultation of physician, it is required to have a licensed doctor in the location they are prescribing to.
- A list of the all the drugs to be sold and their producers as well as the list of the countries to which they are ship and how these drugs comply with the law of those countries.
- The website and the packaging must not contain any images of cannabis leaf.
- Products to be sold do not contain tobacco and nicotine.
- The THC for all products is 0.3% or less.
- Cannabis seeds or MMJ is not sold by the merchant.
- These types of businesses are also classified under the vast high risk industry and also required to submit the documents required at other type of high risk merchant accounts.
To find out more about IPAYTOTAL’s merchant services, Give us a call at +44 800 776 5988 or get in touch with us through our website. Even if you’re not a customer of ours, we want to help you understand the process so you can make the best decisions for your business. We believe transparency and proactive education is the best policy.
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