Tuesday, 10 January 2017

Circumstances That Your High Risk Merchant Account Canada Should Not Be Accepted

By Betty Wallace


Most of the businesses today operate at high levels of chargebacks and also glaring fraud. This makes it hard for the risky businesses to gain any acceptance to the business community. And as a result, most of the businesses will look for a channel out, one with less risk. This will mean a bigger scale for success and minimal chargebacks to your business. Keep reading to know instances when that application for high risk merchant account Canada could be declined.

You could be having licensing problems. If you have to apply for such accounts; you must be operating a licensed business. For most entities, that can be as simple as having a business permit. However, for companies operating gambling sites and sensitive businesses such as pharmacies are strict regarding permits as they have to dictate where they operate their businesses and the kind of products they deal with at all times.

Is your business a high-risk area for fraud? Well, you have to do an evaluation on that entity and discern whether it is a high risk of fraud. Anyone in the entity or planning to start one should try and know the best way to mitigate the risks and also know how to counter the fraud in cases where it may prevail.

Check the higher losses you incurred. This company will have merits to companies with many problematic transactions. This will also be used if there are instances of companies that offer amenities which include automated recurring billings and yearly memberships. This will assist to raise the time of when the company will FAC this loss. Also, there are particular rules that can be followed by all amenity providers. This will raise your ability to qualify for an account. Therefore prevent increased losses.

Banks will look at high customer transaction decline rates. Whenever a customer shops with your company, their bank can decline certain transactions due to issues such as incorrect information and also the violation of anti-violation rules. While such problems are unavoidable in most instances; they have serious repercussions if they are often. If a top proportion of your transactions are declined, you could be declined the application.

How sound is your sales volume? For your application to be successful, your sales volume has to be appropriate. For you to own your account, you have to have the capacity to run large sales volumes and also be very transparent making you viable for ownership. Always give an accurate figure of all the sales and also update them on any changes in your business.

Make certain that you have all the necessary documents. Whenever you are applying for any post or position or ownership, you have to present the necessary documents to back you up. The banks will be looking out for such papers. In this case, you will have to give accurate information regarding the business for instance accurate financial statements and books.

Always avoid getting into the MATCH (Member Alert Control High Risk) list. This is a list catalog of all the offenders of money laundering, illegal transactions, collusion and fraud among others. If your business makes an appearance on such a list, you stand a chance of failing to get such an account for up to five years.




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