My gym is claiming I owe them $45 because they tried to charge my credit card 3 times, and it was denied each time, costing them $15 / pop.

I’m not sure why the charge was denied all three times. They say it came back as ‘miscellaneous’, so they just kept on trying to charge it. Each time incurring a $15 Charge.

I had sufficient funds, and my account was in good standing.

Also this was an EFT payment if that makes a difference.

After all that’s been said and done, your merchant account application at your local bank was stamped DENIED. Total bummer.

All of us feel bad when rejected, and more or less, go through moments of anger and sadness, especially if you really worked your hardest. You are already taking more than the usual risk if your business is already classified as high risk such as adult, travel, pharmacy, escort service, dating service, telemarketing, high volume, and multilevel marketing. But, there will come a time that you’ll feel alive and again, and at that moment, how do you bounce back?

One of the ways to demonstrate resiliency is to know where did everything go wrong. It is humanely possible to miss certain trivial points that when summed up, constitutes to major flaws. So, knowing the basic reasons why merchant account applications are denied is crucial first step, below are the common reasons:

documentary deficiencies
grave complaint record filed to the Better Business Bureau (BBB)
ripoff record
misrepresenting certain, if not, all information about yourself and your business

Papers in work

Deficiencies in documents refers to lack of paper work submitted. Standard paperwork submitted are application forms containing the merchant legal name doing business as (DBA) name,URL,email address, and ,telephone number, drivers license or passport, incorporation documents or business license,monthly processing statements, months bank statements. If your business already has a website, then the paper work needed are

Better Business Bureau (BBB) Report Printed for DBA, Legal Name and URL, yahoo.com search results printed for DBA, Legal Name and URL, list of domains printed from: whois.webhosting.info/(URL),and merchant website, with product description and policy pages printed.

Discern if you really and truly had submitted all these forms, technical as it may see, but, failure to completely send in the requirements reflect your business’ ability to comply with simple rules. But, remember that some of the documents are only required if they are applicable to your situation.

Red marks on your BBB report card

Better Business Bureau (BBB) is an 80-year old, non-government, non-profit organization created to serve as watchdogs of the marketplace and report developments to the public. Their members include most businesses but not all, to say the least.

BBB handles disputes between customers and businesses. From unsatisfactory customer service, to delayed refunds, non-payment of bills,past due accounts, and other customer concerns imaginable. They act as intermediary provide ways to compromise so that as much as possible, the cases won’t have to reach the court.

If your business has a complaint report filed at the BBB, they will notify you and tell the specifics of the customer complaint. It is in your interest to show up and settle do that future repercussions are avoided. Take note, that the BBB does not recommend any business, they operate on neutral ground, making sure that both the right consumer’s and merchant’s rights are intact as much as possible.

Ripping ripoff

A ripoff, in its business sense, is a situation where you pay too much for an item that you bought. This happens when you buy a water lawn mower for $89 when the actual price is only $50. Unlike a scam, in a ripoff situation, you actually get the product but in a higher price. But, how can you be sure if you have been a victim of a ripoff? The best measure is to ask for receipts and try to make inquiries if that’s the actual price. This is practical especially for expensive items or services.

Altering egos

Misrepresentation is also one cause of denied application. Once you submitted the documents, officers do background checks. They coordinate with credit unions (Experian, TransUnion, and Equifax), the BBB, people who you work, and others to verify the authenticity of the information of your office. They check if your processing volumes reconciles with your monthly statements, or if you really have an office, (if you indicated a separate work address) , by asking the landlord of the building you’re occupying, and so much more. Bottomline, they check if you’re business is what you say it is.

Knowing your weaknesses

With the knowledge of the common reasons why high risk businesses’ applications for merchant accounts are denied is a sure- way to be more cautious and plan your next move. You can always go to another bank, contact a merchant account provider, or opt for an offshore merchant account. No matter which path you want to take, learn from your mistakes.

An offshore merchant account ends the days of sulking in misery over denied merchant account applications.

Getting turned down in every application is always kinda hard to take in, especially if you worked really hard for that endeavor. As just in the case of high risk businesses, such as adult, dating service, escort, escort service, telemarketing, travel, high volume, and multilevel marketing, reading the mark , “denied” on the merchant account application is totally unfortunate.

Let’s incorporate the Kübler-Ross model of the five stages of grief to the agony merchants face when their applications are rejected:

Denial – It can’t be happening

After all you’ve been through, making sure that the all the requirements were submitted, together with the original and photocopies, coming in wearing your best suit and even a new haircut, just to impress the financial officer, waiting for like six weeks to get a mere yes or no, you get a denied application. You ask, “this can’t be, I did everything right?”.

Yes you did, it was just not in the right place.

Anger – Why ME? It’s not fair?!

At this stage, you ask yourself, why you were singled out? At this stage, you pin the blame on someone, even on God, business partner, the bank, the bank officer, and yourself. It’ll be relieving to know if you can know the reasons:

documentary deficiencies
grave complaint record filed to the Better Business Bureau (BBB)
ripoff record
misrepresenting certain, if not, all information about yourself and your business

Bargaining – Just let me try it out even for a month or so..

This is a natural emotion, after a rejection, you tend to fight more even though you’re hurting inside. You offer your business or your house or any other property s collateral, all in exchange of another chance.

In most cases, you can’t offer any collateral or insurances if you have been denied. This only happens when it’s a done deal.

Depression – I’m so sad, why bother with anything?

At this point, after exhausting all efforts to reconcile, you tend to love solitude and avoid seeing or talking to other people. Even to the point that you have lost the will to run your business.

Your business is one of the good things you have, why fail in it as well.

Acceptance – It’s going to be OK.

This is the moment where you will have an epiphany that rejections are but a part of life. You have entertained all the feelings that you should, all are natural to experience. You have come to terms that being turned down is not the end, it’s only the beginning.

Blessing in disguise

You have overcome the stages of grief. Time to heal those wounds. Be courageous to go outside the state line, so to speak, have your business stamped with an offshore merchant account.

Applying for an offshore merchant account for your business is easier and faster. They are especially accommodating to business with a high risk nature. But, remember that even if they are less strict, you have to be secure in your application. Make sure that all the requirements are intact, settle any disputes with your costumers and other affiliates. Start clean and fresh with your offshore merchant account.