You got declined. Or Stripe closed your account, a bank told you your industry is high risk, and now you are filling out another application wondering what will be different this time.
Here is the good news. Most of what decides a high-risk approval is in your hands, and most of it happens before you hit submit.
I have been putting files together for underwriting since 2009. This is what the underwriter is looking for, and how to hand it to them in one clean package.
What does an underwriter look at on a high-risk application?
Four things: who you are, how your money moves, what your website says, and whether all of it tells the same story.
- You. Your ID, your personal and business financials, and whether your name is on the MATCH list from a past processor.
- Your money. Your bank statements, and your processing statements if you have taken cards before.
- Your website. What you sell, how you sell it, and what a customer sees before they pay.
- The match. Whether the business on your application is the same business on your website and in your bank statements.
That last one is where a lot of good businesses get tripped up. Nobody is trying to hide anything. The application just says one thing and the website says another.
The documents to have ready before you apply
Put all of this in one folder before you start. Sending everything complete the first time is the single biggest thing that speeds up a decision.
- A voided check or a bank letter. A pre-printed check with your business name on it, or a signed letter from your bank dated in the last 30 days showing your routing and account numbers. A starter check does not work.
- Three months of business bank statements. The full statements your bank sends, not a printout of recent transactions.
- Three months of processing statements, if you have taken cards before. Again, the full statements, not a summary screen.
- Your driver’s license, and the name on it has to match the name on your application.
- Your EIN letter from the IRS.
- Your formation documents, like your articles of organization, and your business license if your city or state requires one.
- Your website address, plus any brochures or marketing materials you use.
What your bank statements tell an underwriter
Your bank statements are the most honest document in the file, and underwriters know it.
They are looking for steady deposits, a balance that does not keep hitting zero, and how many overdraft or NSF fees show up. A few is life. A pattern of them is the most common financial reason I see an application get declined.
They also compare the volume you put on the application to what the statements show. If you write $50,000 a month and your deposits show $12,000, that gap is the first question you will get. Put down what your business actually does today. If you expect to grow, say so separately, and say why.
Get your website ready before the underwriter sees it
Your website is part of your application. Underwriters read it, and for online businesses it is where most files stall.
Before you apply, make sure a stranger landing on your site can find:
- Exactly what you sell, described the same way it is described on your application.
- Your prices, in dollars, before checkout.
- A refund and cancellation policy.
- Terms of service and a privacy policy.
- How to reach you: an email address, a contact form or phone number, and a physical business address.
- When the customer gets what they paid for, whether that is a shipping timeline or a program start date.
If you sell wellness products or anything health related, read your product pages one more time. Promises like “cures” or “guaranteed results” get flagged, even when the product is completely legitimate.
Tell the underwriter everything, including the ugly parts
This is the advice I give every single merchant, and it is the one people resist the most.
If a processor closed your account before, say so. If you had a run of chargebacks two years ago, say so. If you are on the MATCH list, say so. A short, honest letter explaining what happened and what you changed goes a long way.
The instinct to leave it out is completely understandable. You want a fresh start. But underwriters check, and a problem they find on their own reads very differently from one you told them about. A problem you disclose is a conversation. A problem they discover usually ends the conversation.
When we know the whole picture up front, we can tell you honestly what your options are, and sometimes that includes options you did not know you had.
“I have been declined before, and my credit is not great. Is this even worth trying?”
Often, yes.
A past decline is not automatically disqualifying. The reason for it matters much more than the fact of it. Plenty of businesses get declined by a processor that simply does not support their industry, and that says nothing about the business.
Credit works the same way. Underwriting reviews your personal financials, and a lower score does not automatically end the conversation for a high-risk account. More often, it changes the terms, usually through a reserve.
Here is what a reserve looks like in real numbers. Say you process $10,000 a month and underwriting sets a 10% rolling reserve. Each month, $1,000 is held back and the rest reaches your bank as usual. The held money is released on a schedule, often around six months later, so after the first stretch you are getting old reserve money back each month while new reserve money is held. It is a cushion for the bank, not a fee, and it is your money.
Where you would be in real trouble is applying somewhere that does not ask the questions, getting approved anyway, and getting shut down three months later with your money held. That is the outcome this whole process is designed to avoid.
What happens after you apply with EMS
You start on our application page. There is no application fee.
We use your information and documents to prepare a full application for e-signature. Once it comes back signed and your documents are in, underwriting typically takes two to three days. Underwriting may come back with questions, which is normal and not a bad sign.
98% of qualifying businesses get approved. Qualifying means your industry can be supported, your personal and business financials are reasonable, and your application is honest. Nobody can promise approval, and I will not, but the odds are much better than the high-risk label makes most owners fear.
Frequently asked questions
How long does it take to get approved for a high-risk merchant account?
At EMS, underwriting typically takes two to three days once your documents are in. The most common cause of a longer wait is a missing or incomplete document, which is why the folder above matters.
Can a brand new business get a high-risk merchant account?
Yes. Without processing history, your bank statements, your website, and your own background carry more weight, and a reserve is more likely. A new business is not a reason to be declined on its own.
What if I am on the MATCH list?
It makes approval harder, not impossible, and it depends on why you were added and how long ago. I wrote a full post on what the MATCH list is and how to know if you are on it.
Will I have to keep a reserve forever?
Not usually. Reserves are reviewed once you have a track record, and a clean processing history is the best argument for reducing or removing one.
Ready to apply?
If your folder is ready, start your application here. There is no application fee, and a real person reviews every file.
If you have been declined before and want to talk it through first, send me a message and tell me what happened.
About the author: Julie Franke is a Certified Payments Professional (CPP) and has led Electronic Merchant Services since 2015. She has worked in payments since 2009 and specializes in helping high-risk and high-ticket businesses get approved, stay approved, and keep their money moving. EMS has served business owners since 2001.