High-Risk Merchant Account Instant Approval

“Instant approval” has a complicated reputation in the high-risk processing industry. Many payment processors that offer instant approval aren’t clear exactly what they mean, which can lead to a misalignment of expectations. This can make it difficult to forecast and plan in the short term while onboarding with a new processor since it becomes unclear when payment processing will actually come online.

In this quick guide on high-risk merchant account instant approval, we’ll cover:

• What “instant approval” means
• Why high-risk merchants are harder to approve quickly
• Where to find high-risk merchant account instant approval

Let’s break down each and uncover the value proposition behind the phrase.

What Does “Instant Approval” Mean for High-Risk Businesses?

Instant approval may give the impression that businesses can begin payment processing immediately, but this isn’t generally the case. Instant approval means that the underwriting process is done upfront, providing a near-instant answer to whether or not a high-risk merchant will be approved for payment processing. This allows the onboarding process to begin immediately, but that process still needs to conclude before payment processing is actually made available. 

While it may seem like this makes instant approval less valuable, it is vital to understand that underwriting is typically one of the more time-consuming processes of starting a merchant account. When a company is willing to staff the number of underwriters and leverage the technology necessary to speed it up, this adds tremendous value, especially for businesses that were suddenly dropped by a generalist payment processor due to their higher risk profile.

Why are High-Risk Merchants Harder to Approve Quickly?

For something like a high-risk merchant account, instant approval can be difficult to procure. This is because there are several different reasons why a merchant may be considered high-risk, and it takes a more comprehensive look from underwriters to understand these merchants’ unique risk profiles and needs from their processors. Some businesses may be high risk because they’re in an industry that experiences higher-than-normal chargeback or fraud rates, whereas others may be high-risk simply because they are attached to an industry that stokes controversy in a given market.

High-Risk Industry Criteria

High Chargeback/Fraud Rates

These increase the financial risk for payment processors due to expensive payment reversals and dispute processes.

High Purchase Volumes

Businesses with low rates of chargeback and fraud can still struggle with a high absolute volume of both.

Headline Risk

The risk of a product being used in a way that would harm the reputation of the merchant and their processor. This is a factor for merchants like gun dealers or CBD/cannabis merchants.

As a result, it takes more time to underwrite these clients since there are simply more factors to consider and more risk involved if they’re not properly vetted.

Where Can I Find High-Risk Merchant Account Instant Approval?

Most payment processors that offer instant approval only offer this feature for low-risk clients, and even their more extensive process for high-risk merchants often ends in denial since many of them don’t accept many high-risk industries.

Instead, these merchants should seek out specialty high-risk processors that advertise instant approval or “upfront underwriting.” With these processors, you can have confidence that their advertised features apply to your business, and they will provide a better-tailored service for your unique needs.

Get Instant High-Risk Approval with Seamless Chex

Seamless Chex is an experienced high-risk payment processor that specializes in purpose-driven features like chargeback management tools and fraud protection. Our 99.1% approval rate and comprehensive high-risk industry list mean businesses of nearly all industries and sizes can be confident in our support. We work to truly understand your business from the outset, with upfront underwriting and individualized payment schedules designed to work for each client’s market and business cycle.

‍To learn more about the high-risk merchant account instant approval, contact us today.