Advice on how to become more likely to get approved for a furniture business merchant account:
Here are some ways to make your business much more likely of getting approved:
It may seem bizarre that selling furniture online is considered high-risk, but this is the case. The reason, in most cases, for why online furniture businesses are considered high risk comes down to 1 thing: chargebacks.
Furniture companies experience very high chargeback rates, typically due to the time taken between the date the customer orders the product, and the delivery date of the product. The truth is that any change of circumstance can happen within this time frame, hence the disputes that can arise when the furniture is finally delivered. The customer will often involve their bank about the issue regarding the product that they have received, and then … chargeback.
In the eyes of all card processors this is a red flag, since it is not in their best interest to be accommodating a merchant with a high volume of chargebacks. THIS is one of the reasons why a lot of businesses, such as furniture businesses are labelled as high risk. Hence why an online furniture retailer would need a card processor that truly understands the full nature of the online furniture retail industry.
Pay off all outstanding bills or debts. If you have no debts or outstanding payments to make, it can speak volumes about your character. It shows you value getting everything paid and out of the way which is something underwriters look at.
(Ideally) Have previous audited financial accounts.
Proof of card processing history. This makes your business look much less ‘high risk’ to the underwriters since you can prove that your business has already been processing card payments.
Have enough money saved and put away for any business-related emergencies. This shows the underwriters that you have put precautions in place for any potential emergencies. This makes your business far less likely to fail, and in turn, it makes your business less ‘high risk’.
(Ideally) Have no chargeback history. This can sometimes be out of your control as a furniture business owner, and the underwriters know this. Therefore, it isn’t a must, but if you do have a clean/minimal chargeback history, it will only help your chances of getting approved for a furniture sales merchant account.
Have an immaculate credit history. This shows that you commit to making payments on time. Again, this speaks volumes about your character and will make you + your business seem much lower risk to the underwriters which of course, increases the probability of getting approved.
Experts in CBD Card Processing