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The Ninja Guide to ensuring your merchant account application is approved

Updated on October 27, 2013

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The Ninja Way

You may be wondering what in the world is a “ninja guide?” Coined by President and CEO, Gary Shapiro, of the Consumer Electronics Association (CEA), in his book titled “Ninja Innovation” Shapiro uses ancient metaphors to convey killer strategies of the world’s most successful businesses. These “killer strategies” can also help you get that coveted approved merchant account application. But first, let’s start at the beginning.

Even though processors highly-desire your processing business they still have to follow specific guideline before approving your application for a merchant account.

Before we go any further, you may be wondering just what is a merchant account? Simply put, when a customer swipes his or her credit card or debit card those funds are held in a bank account for the merchant.

In a nutshell, the core reason you must be approved for a merchant account is to protect your company from losing money every time a credit card is processed.

Code of the Ninja - all actions are informed

Make sure you get definitive answers when you speak to a prospective processor about the type of document you’ll be expected to fill-out and the length of the process. If the processor answers with red flag statements like, “we approve any type of document.” RUN! Lastly, before signing a contract it is crucial you obtain a copy of your merchant agreement.

Ninja mental attitude - In War, risk is unavoidable

1. Collect your financial records

To ensure the best chances for approval, having your financial records on hand is the top tool to make that happen. Mid-size companies have a proven track record to not want to provide financial records due to privacy issues. This is a huge mistake! Underwriters, more than anything, want to see your company is financially stable. On the other hand, start-up companies may worry they don’t have enough solid financial history. The best option here is for the company to provide a recent balance sheet, profit and loss statistics, and any notes from their accountant.

2. Proven Successful Process History

If your company has a proven record of continuous successful processing history, then this will be great leverage in your favor. It is advisable to supply anywhere from 3 months to 6 months of processing statistics.

Processing statements should be segregated by month and include the following:

  • Number of transactions

  • Total number of transaction volume

  • Number of refunds

  • Total refund volume

  • Number of chargebacks

  • Total chargeback volume

The Art of Success

Although you can’t actually use your fancy jujitsu moves on the underwriter to approve your application, there are less drastic and often overlooked strategies like writing a cover letter to aid in your mission to get your application approved.

The following is a brief rundown on what you should include in your processing application cover letter:

  • Mastering the way you highlight the good points - This could include implementing proactive policies to prevent fraud.

  • Logically reason your way to success - Its important that you can demonstrate an ability to keep up with orders and smoothly operate the company.

  • Innovate the Ninja way - Although it may seem nuts to ask an underwriter for a security reserve since this would usually indicate a high risk score, its a highly effective tactical strategy. Asking the underwriter about a security reserve will convey a sense of seriousness you have about the application.

  • The Ninja Code of Ethics - If your company is dealing with less than perfect credit, the old adage that telling the truth is always best in the long run, hold true in this situation as well. The underwriter will not only view you as honest but also as someone who take responsibility for their actions.

After your application is successfully approved for you merchant processing, then you’ll need to find the best payment processing vendor. Brian Manning, owner of http://www.bancard>, has been in the merchant services industry for over 9 years. With a passion for marketing, business development, and entrepreneurship he has helped thousands of businesses streamline their payment processing needs. On Manning’s website you will find a vast array of informative articles and tips on what to pay attention to when applying for a new merchant account. You’ll find resources and tools that will help you in your quest to find a fair merchant account program, and you find it presented (we hope) in a very common sense, efficient and easy to understand format.

<a href=”>Kelly Dennis</a>

Payment Processing by Industry

Main Benefit
Mobile payment acceptance
Professional Services
Accept payments anywhere
IP Network Terminal
Accept payments at location, phone, online, or on the go

Extra Tips to Application Success

  • Financial Statements = Financial Stability

  • Supply 3-6 months of processing statements

  • Write a killer cover letter like your applying for a job



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