When PayPal Drops Your High Risk Merchant Account
Where To Turn When You Lose Your PayPal Merchant Account
When an aggregate high risk merchant account, like PayPal, kicks you off its platform or freezes your account, it can be confusing as to what to do next. Signature Payments is here to answer all of your questions. We take the guesswork out of what your next steps should be when applying for a high risk merchant account after losing your PayPal merchant account.
Ready to accept payments anytime, anywhere?
What is a Dedicated High Risk Merchant Account?
A dedicated high risk merchant account, like one you might have acquired with Signature Payments, is an account where the business has its merchant ID. The merchant is not sharing a high risk merchant account with several other businesses. This is different than an aggregate high risk merchant account like PayPal. These aggregate companies use one merchant account for an entire portfolio of merchants.
A business has far less control with an aggregate high risk merchant account with PayPal than with a dedicated high risk merchant account. With dedicated high risk merchant accounts, transactions between the merchant and the customer are deposited directly into the business bank account.
With an aggregate high risk merchant account, the funds from a transaction are sent to the account provider and then are deposited into the merchant’s bank account. PayPal, the aggregate high risk merchant account provider, also makes its own rules and can make any changes they deem necessary without your consent.
After Your High Risk Merchant Account Is Dropped From PayPal
Chances are, if you were dropped from one of the significant aggregate high risk merchant account providers, like PayPal, it is only a matter of time before you are dropped from the others.
This means that your next step will be to apply for a high risk merchant account with a company that specializes in high risk merchant accounts. This provider can then assign you a specific merchant ID.
Reasons For Dropped Payment Accounts
There are several reasons why a business gets flagged as high risk. It’s expected that PayPal and other aggregate merchant providers to accept most merchants only to shut their accounts down a few months later.
Here are some of the most common reasons banks and payment processors consider your business as high risk:
- Large amount of chargebacks
- Higher risk of fraud
- Reputational risk
- High ticket prices
- State and Federal Regulations
- Continuity billing
It is best to seek out a high risk merchant account payment processor with excellent relationships with several banks.
It’s even better when that merchant processor has an in-house underwriting team that will cross every T and dot every I during the application process. They ensure you are presented in the best ways possible before sending your application to a bank.
Unlike PayPal, this kind of a high risk merchant account payment processing company is incredibly difficult to find. That said, here at Signature Payments, we are a high risk payment processing company that meets those exact.
Top Payment Gateways
Top Payment GatewaysMay 26, 2023 | Gateway, Payments If you’re running an online business, you know how important it is to have a reliable payment gateway. Your payment gateway is what allows you to accept payments from your customers. There are a lot of different payment gateways out there, so…
Mastering Sales During a Crisis
I have had a number of questions lately from salespeople lately. Some are concerned about the next 30 to 60 days and are looking for direction. Others are using the time to change how they sell. They have been selling face to face, asking for statements,
Finding a Payment Processor for Adult Merchants
All businesses are unique. Every restaurant, grocery store, book shop and retail boutique have their own way of running their business. They have their own image, unique inventory mix, proprietary process, brand, etc. That “thing” that makes them unique.
Modern RiskMay 24, 2023 | Payments, Risk For years, merchant acquirers have, out of both necessity and routine, utilized fairly streamlined categories and criteria when determining how to assess the risk a new merchant possesses. Whether credit, fraud, or reputational risk, the requirements primarily revolve around business type or MCC…
Square TerminalMay 22, 2023 | Payments A Square terminal provides a modern interface to process your payments. Square is one of the largest payment processors in the world. As a result, their terminal technology is fast and easy-to-use for merchants and customers alike. It’s likely you’ve used a Square terminal…
Compelling Evidence 3.0, Visa
Compelling Evidence 3.0, VisaMay 22, 2023 | Payments, Signature News Empowering Merchants to Combat Friendly Fraud For online merchants, the worst kind of fraud is the friendly kind. Malicious fraudsters utilizing scaled techniques are comparably easier to catch when you have a…
How To Accept Bitcoin As Payment
How To Accept Bitcoin As PaymentMay 22, 2023 | Payments To accept Bitcoin as payment on your website you’ll need to install a crypto payment gateway. A gateway exchanges the data between the customer’s account and yours. These integrations are found through payment processors that support cryptocurrency exchanges. If you…
Elon Musk’s Twitter Payment Platform
Elon Musk’s Twitter Payment PlatformMay 19, 2023 | Payments Elon Musk has recently made a splash in the payments industry with his new Twitter Payment Platform, which promises users a fast and secure way to transfer money. But is this platform a threat to other payment processors? In this article,…
Accept Crypto Payments On Shopify
Accept Crypto Payments On ShopifyMay 19, 2023 | Payments With a surge in Bitcoin popularity, many eCommerce stores want to accept crypto payments on Shopify. Customers seek new options and checkout, and among them is cryptocurrency. For online stores, this means adapting payment gateways that suit alternative forms of payment. …
How to Accept Crypto Payments
How to Accept Crypto PaymentsMay 17, 2023 | Payments If you want to learn how to accept crypto payments, follow these simple steps. Find a cryptocurrency integration that works with your website There are major solutions like Bitpay or Coinbase that work with major websites If you currently have a…