5 Reasons why your high-risk business may be declined by a payment processor

Author : LotPayments
Publish Date : 2021-04-12 12:51:02
5 Reasons why your high-risk business may be declined by a payment processor

Simplify Your Life With Lot Payments

Lot Payments is the most secure revenue collection solutions provider of our age, custom developed for your large scale business with processes involving credit card payments. We offer technological and financial solutions for companies, allowing acceptance of payments for your services or products from anywhere in the world.

High risk business accounts provide the type of service that allows businesses to receive card payments from their customers.Credit card processors divide sellers into two categories based on a variety of factors: high risk or low (normal) risk).


When you open your business, and all your ducks are in a row, ready to start operation, the last thing you want to hear is that your application for a merchant account has been declined. — Often, start-up businesses do not even understand why their accounts were declined by payment processors.

To avoid this grave disappointment, and potentially severe devastation on your business, it’s necessary to understand why payment processors usually decline business merchant applications.

Payment processors, like any financial institution, do not want to take on clients who will pose a threat to their operation; indeed, they want to avoid risk, understandably.





  • High chargebacks
  • Low credit facilities
  • Reputational (stigmatic) risks
  • Previous bankruptcies.
The good news is that lotpayments, a payment processing facilitator with contacts among many offshore acquiring banks, has provided your business with five major reasons why your high-risk business may not receive ‘merchant’ status: —



Every piece of data or information about your past credit history needs to be provided. This includes any lapses of payment in the past. Although such lapses may look bad, it will be worse if you leave it out intentionally and your provider finds out.

Remember that your credit history is available to all lenders and providers for checking purposes. Even individuals within your organisation who have been given rights to sign for deposits, etc., must be in a good credit standing in order for your business to receive high-risk payment gateway accounts.

Most merchant processors will require that the individual signing has a major position, partial or title ownership within the company if it is registered as an LLC or corporation. Meanwhile, if you have a high-risk merchant account termination history with another bank, your name or business will definitely appear on the TMF Match List, a “blacklist” that processors use in order to determine which businesses pose a high credit risk.

Any outstanding bills or fees to a previous provider gives you a poor chance for approval. High-risk merchant account providers are always wary of issues that may lead to merchant fraud.


Apply with lotpayments today and discover the great benefits available, especially for high-risk businesses seeking merchant accounts. With lotpayments’s expansive offshore acquiring bank connections, you can be sure to find a solution to make your business a success.





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