Qualifying for commercial accounts
A commercial services provider will want to make sure that you are a legitimate business that will not leave them liable for fraudulent charges, before giving you a merchant account. They will start with a basic background check. This includes a thorough credit history review of the owners or officers listed on the application, in addition to credit references from two to three suppliers. The most important question that providers want answered is whether your business is likely to have a high incidence of chargebacks on your merchant accounts. For the most part, tangible products are considered to be much safer than services. As well, businesses that liberate purchased goods immediately in exchange for payment are viewed as being less risky. Providers will also consider the type of credit card transactions that your company performs before they give you a merchant account. As a general rule, card-present transactions that allow you to swipe the credit card and obtain a signature in person are considered to be much safer than card-absent transactions that take place by phone, by mail or over the Internet. Being a higher-risk merchant does not necessarily prevent you from getting a merchant account - but it will drive up your costs. Finally, if you have had merchant accounts in the past, providers will require old statements to better gauge your charge and chargeback volume. Some companies advertise high acceptance rates in an effort to impress - do not be lured; 99% acceptance rates are common among ISOs.