Popular Questions

Is My Business Considered High Risk?2021-02-03T12:36:37+00:00

There are multiple reasons why processors may classify businesses as high risk. These include the following circumstances:

  • You have a negative credit history.
  • You offer recurring billing or a free-trial.
  • You sell high-ticket items.
  • The industry you operate in has a high rate of fraud or chargebacks.
What Type of Companies are Accepted?2021-02-03T12:35:54+00:00

We work with US-based and offshore businesses. We accept companies that are classified as high, medium or low-risk. Start-ups are accepted.

How Long Will it Take to Approve My Application?2021-02-03T12:35:29+00:00

The average approval time for a US merchant account ranges between 2 and 3 business days. Occasionally, the underwriter may request additional information. This can extend the timeframe for new account approvals, but typically only adds another 2 days onto the process provided you submit the information promptly.

What Supporting Documents are Required?2021-02-03T12:35:00+00:00

If you are applying for a US merchant account, you will need to include the following documents with your application:

  • Passport, Driver’s License or government-issued ID
  • Voided check or bank letter
  • If applicable, 3 months of most recent credit card processing statements from your previous or existing provider
  • 3 months of most recent business bank statements. If the business is new, 3 months of most recent personal bank statements are required
How do I Apply for a Merchant Account?2021-02-03T12:34:34+00:00

Our online merchant account application process is quick and simple. In total, it should only take around 10 minutes:

1st Step: Quickly complete the online application.
2nd Step: DocuSign the merchant processing agreement.
3rd Step: Wait to be approved by the underwriters (48-72 hours).

How Long Do Settlements Take to Clear?2021-02-03T12:33:39+00:00

In most cases, settlements take up to 24-48 hours to process, after which time the funds will be deposited in your bank account.

Are There Any Setup Fees to Pay?2021-02-03T12:33:11+00:00

No. Many high-risk merchant account providers will charge you a fee to set up your account, but we want to make our services accessible to everyone.

What Are Your Rates?2021-02-03T12:32:47+00:00

Our rates are lower than the industry average. The exact rate will vary depending on the classification of your business (low, medium or high-risk).  Once you completed our online application, you will receive an instant quote via DocuSign.

Why are Chargeback Ratios Important?2021-02-03T12:32:24+00:00

Most merchant accounts are set up on the condition that your chargeback ratio does not exceed 0.9%. If you go over this amount, then you could well have your account automatically terminated.

How do I Activate Your Chargeback System Alert?2021-02-03T12:32:04+00:00

Setting up your chargeback alerts couldn’t be simpler. When you first sign up, you will be prompted to select whether or not you want these alerts turned on. If you already have a high-risk merchant account with TailoredPay, they can be activated at any time. Simply contact our customer service team, and we will be happy to talk you through the whole process step-by-step.

What are the Reason Codes for Chargebacks?2021-02-03T12:31:38+00:00

Whenever a customer files a chargeback claim, they need to explain to their credit card company why they are doing so. These reasons are known as chargeback codes. There are four main chargeback codes: quality, clerical, technical, and fraud. Quality covers things like receiving substandard or faulty products. It also covers cases where the customer never received their purchased item. Clerical chargebacks include duplicate billings, over-excessive service charges, and non-issued refunds. Technical chargebacks may be filed if the customer doesn’t have enough credit remaining on their card for the purchase to go through, or if there was a processing error during the transaction. Lastly, and most common of all, fraud chargebacks apply when someone else made a purchase using the customer’s card. As you can likely already guess, these chargebacks are the most common because they are very difficult to disprove. Quality chargebacks are also fairly common, although these are slightly easier to dispute in many cases.

What are Chargeback Thresholds?2021-02-03T12:31:17+00:00

The chargeback threshold is the percentage (either in the amount of transactions or overall revenue) that your customers might ‘charge back’ before the merchant account is red-flagged for closure. In the US, the threshold for high risk merchant accounts is usually between 1 and 2%. In many cases, merchant accounts are automatically closed down if this threshold is exceeded.

What is a Chargeback?2021-02-03T12:30:26+00:00

A chargeback occurs when a cardholder disputes a transaction on their account. When this happens, the bank that issued the credit card investigates the matter on behalf of the cardholder. Upon discovery of a fraudulent transaction, the issuing bank returns the funds to the cardholder. If a merchant cannot prove that the transaction is legit, the processor will charge a fee (chargeback fee) and subtract the amount of the transaction in question from the merchant’s bank account.

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