How to Get a High-Risk Merchant Account in Texas

Steps to Apply for a High-Risk Merchant Account in Texas

The ability to process credit card payments has never been more important today. With the pandemic ravaging the country, any strategy that would reduce physical contact is highly encouraged among businesses in and outside Texas.

Now, if you haven’t partnered with a credit card processor yet or you haven’t had any luck getting one because you’re a high-risk merchant, follow these steps to help you get approved for a high-risk merchant account in Texas.

Find a Reliable High-Risk Payment Processor

Although most traditional financial institutions would shy away from high-risk merchants, there are also a lot of payment processors that would promise you the best plans for your business. Sadly, only a few of them really deliver on that promise.

When searching for a reliable high-risk payment processor, be sure to read the fine print, whether it’s in the marketing proposals or the contracts. Although you can expect higher fees because you’re considered high risk, a good payment processor will offer you excellent rates and impeccable service in one.

Prepare All the Necessary Merchant Documentation

Your high-risk merchant account application form should be supplemented by proper documentation that would represent your financial history and business status. Underwriters will use these documents during evaluation to determine if you are worthy of a high-risk merchant account or not.

In Texas, you will be asked for different paperwork including incorporation and shareholders’ certificates, a passport and utility bill from local directors and shareholders, an organizational structure chart, the license number and name of your business, and your latest bank and processing statements. You will also be asked to provide identification, your SSN, your website address, and even some of your marketing materials.

Think About Value-Added Features

When you’re looking for a high-risk merchant account, you need to consider factors such as the ability to customize your plan according to your needs, the use of technological innovations, and the level of security that a partner has to offer for your business. It’s also essential to work with a payment processor that has experience with businesses within your industry so it’s easier for both parties to navigate the working relationship.

Prepare for Scrutiny During the Underwriting Process

Underwriters have the difficult task of determining whether you’re fit for a high-risk merchant account or not. This is why you should be prepared for possible scrutiny during the underwriting process. If you have issues with finances, credit, and even past businesses, it’s best to divulge them on your application rather than leaving the underwriting team to discover them.

Remember that having a bad credit history or past bankruptcies will not automatically disqualify your application. You just need to prove your credibility to payment processors and make sure that you impose the best practices in payment processing if you get approved for a high-risk merchant account.

It doesn’t matter if you’re starting a business in Texas or anywhere in the country. These tips will surely give you the best chances at finally getting approved for a high-risk merchant account. Contact our team today to get started on the process of opening a merchant account in Texas!

Joyce Hope( Merchant Account Specialist )

Joyce Hope is a writer who specializes in merchant accounts. She has worked for First Card Payments since 2017.