Declined Merchant Processing

There are a number of reasons why a merchant account application could be declined. Knowing these reasons before you apply can help you properly define the type of merchant account that you will qualify for.

Poor Personal Credit Or
Active Collection Accounts

Unless a business is publicly traded on a major stock exchange, the personal credit of the owner or chief member is considered for merchant account approval. If the personal credit of the owner is poor or shows active collections, the merchant account application will be declined.

Active Tax Liens
An active tax lien against the principal or the business is grounds for immediate rejection.

Unacceptable Business Type
Processing banks each have different guidelines that dictate the types of businesses that they'll issue merchant accounts to. If an application is submitted that indicates a prohibited business type, the application will be declined. Typical prohibited business types include debt related businesses, adult businesses and companies that provide extended warranties.

Type Of Business Doesn't Support Processing Volume Or Average Ticket Size
Processing banks take fraud very seriously and they review every merchant account application for indications of foul play. If the processing volume and average ticket size listed on an application doesn't jive with the type of business, the application will be declined. For example, if a coffee shop listed an average ticket of $500 on their merchant application is would probably get declined, or at the very least the processor would ask for justification of the ticket size.

Present On The MATCH List
The Member Alert to Control High-Risk (Merchants) File (MATCH) is maintained by member banks to record merchants or principals that have had their merchant accounts closed or cancelled for violating their merchant service agreement. A merchant or principal on the MATCH file will not be able to get a merchant account until they're removed. Getting removed from the MATCH file is not an easy thing to do and usually requires legal assistance.