Web Hosting Shopping Cart Merchant Account Approval Tips

If you want to run a web store then you will need a web hosting shopping cart solution and you will need a merchant account to receive credit card payments. Unfortunately for some, this may not be as easy as signing up for a web hosting shopping cart solution, due to certain reasons. In this article, we shall look briefly at the issues some people face while trying to open a merchant account and we will also see how best to overcome them.

New web store owners worry about ecommerce shopping cart design online merchant transaction issues like merchant account approval, especially if their applications are considered “high risk”.


So what do merchant account providers actually consider high risk? When it comes to assessing risk, merchant account providers will look at the business as well as the business owner.

Frankly speaking, most ecommerce is considered risky for the simple reason that there is no physical transaction as opposed to conventional transactions where an actual credit card is swiped and checked by a person during the point of sale (POS) or checkout process. So although it might be a bit challenging to set up a merchant account for an online business, it’s not impossible.

Next, merchant account providers will look at the business owner. This is when a good credit report comes in very handy. This is also why it is important to pay your loans and bills on time. If you had a previous merchant account, make sure it is well maintained. Terminated accounts will appear on what is known as the Combined Terminated Merchant File.

Do not try to hide anything. If you do, it’ll look even worse when everything comes out into the open. Disclose any liens or bankruptcies you’ve undergone, if any. But more importantly, state your efforts on how you managed to overcome these challenges and get back into the black. This will show that you are now more experienced and responsible in these matters.

Improve Credit Rating

A good credit rating goes a long way. If you have settled all outstanding issues regarding loans, liens and bankruptcies, contact credit reporting agencies such as Equifax, Experian or Trans Union to get those details removed from your report. Starting from a clean slate will definitely improve your credit rating. However, past records cannot be deleted.

Honesty Is The Best Policy

If asked, tell the truth even though your past indiscretions no longer show up on your current credit report. This is a great way to build credibility. Besides, working your way back out of bankruptcy or other tight situations is an achievement in itself.

You may find that you could be subject to higher fees if your “past” is taken into account but this can be offset easily by the higher revenue from non cash payment options afforded you by having a merchant account.

Portray Good Business Sense

Merchant account providers basically want some assurance that you understand your business environment and know the potential risks involved. So you will need to display, preferably, firsthand experience in these matters especially when it comes to identifying risks and neutralizing them. Thankfully, most payment gateways with merchant accounts and e commerce web hosting shopping cart solutions have security high on their priority list. That said, it’s still good for a merchant to stay up-to-date themselves as well.

Once you’ve got your web hosting shopping cart solution and merchant account settled, its time to start marketing your store. See some of our previous posts and future ones for more on this.

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