How can you qualify for the Best High Risk merchant account rates?

Negotiating lower rates in the best high risk merchant account involves preparation and confidence in your procedures and finances when it comes to finding a processor. The first hurdle is to have great credit and a good credit history in the first place. Your credit, as well as business credit are very important piece of the plan. Processors want to see both of these scores above a 650, and that you have as little debt as possible.

Next, you need to provide a solid processing history. Most processors are looking for a chargeback ratio under 1% and a history of steady transaction volume. You will also want to document your complete business life cycle, down to tax returns, professional financial statements, and a detailed business plan that highlights your stability and future growth.

Three, think carefully about your industry positioning. Within a high risk designation, some industries will be positioned better for rates than others in that category. Consider also collecting any required licenses/permits for your specific business, and obtain any relevant certifications or insurance policies that might show your business is compliant and legitimate.

Four, have lots of cash flow, and provide bank statements showing consistent business deposits! Processors are more comfortable with daily cash flow deposits as this mitigates risk for them. Other things that processors are looking for are good fraud prevention systems and a detailed history of your transactions.

Five, compare multiple processors. Don't just take the first one you see. These specialized processors specifically for the best high risk merchant account should provide a better rate than a bank that is trying to manage a high-risk retail relationship. Negotiate on the strengths of your business, and be prepared to provide a pile of documents that support your application.