Instant Approval Merchant Accounts: Do They Exist?

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Last Updated on December 13, 2022 by Corepay

Finding an instant approval merchant account is uncommon for high-risk merchants. If you’ve seen claims of “instant approvals,” these are typically false.

While merchants don’t want to wait to be able to accept payments, the reality is that there is a lot that goes into a high-risk merchant account approval.

While there are low-risk processors such as Square, Stripe, and Paypal that can approve merchants faster, all three of these options prohibit high-risk businesses.

This article will break down everything you need to know about high-risk merchant account instant approvals and provide tips to speed up the process when applying.

Can I Get A High-Risk Merchant Account With Instant Approval?

At Corepay, we pride ourselves on getting merchants approved swiftly. With this being said, high-risk merchants cannot receive instant approval.

It will always take longer for high-risk merchants to get their final approval than a low-risk merchants, as there’s additional merchant account underwriting for high-risk merchants.

How To Apply For Your Merchant Account And Get Approved Quickly

You will need the following when applying:

• Company EIN document
• Financial statements – personal and business
• Proof of operating address
• Articles of incorporation
• Principal’s driver’s license
• Business plan – typically optional, but can help show the big picture of your business to your payment processor
• Voided check proving business bank account

Attaching a screenshot of the homepage of your website can also speed up the process.

When applying for your merchant account, below are a few things you can do to speed up the process:

• Be transparent
• Have an informative website
• Be ready to go with all paperwork you will need
• Respond to emails in an orderly fashion
• Ask any questions up-front

How Long Does It Take For High-Risk Merchant Account Approval?

High-risk merchant accounts typically take between three and five days minimum for final approval. 

Getting final bank approval takes more time as there’s more investigation into credit history, overall risk of the business, and chargeback history.

The good news is that at Corepay, we can get you pre-approved typically within 24 hours, which speeds up the process of getting your final approval.

Once we pre-approve your account, we send it to the bank for final approval. We are usually able to expedite this process to ensure the fastest possible final approval.

To speed up this process, be sure to provide us with all of the information we ask for as swiftly as you can.

Personal/Business Credit

Your business and personal credit will be pulled when getting your high-risk merchant account. This is because poor credit can be enough for your account to be viewed as high-risk.

Beware Of Instant Approvals

Knowing what could happen is essential if you sign up for instant approval. In addition, you need to be aware of a long-term contract with expensive early termination fees.

If you begin accepting payments before receiving final approval from the bank, this can land your account on the terminated merchant file, which is nearly impossible to escape.

Why Does Credit Score Matter?

Credit score significantly impacts your approval chances and affects your monthly fees. If you have poor credit, you are putting the banks and processors at greater risk.

Having a credit score below 580 can make obtaining a merchant account difficult. While we can typically get merchants approved, merchants with poor credit may have higher fees, an ETF, and a higher rolling reserve.

Can You Get A Merchant Account With Bad Credit?

The answer is usually yes. At Corepay, we will do our best to get you approved, provided you are running a legitimate business.

As mentioned above, it might be tempting to look for instant approval to avoid a credit check, but this is not legit and will not work out well for your company in the end.

Being open and honest during your application will significantly increase your approval chances.

Why Apply To Corepay Today

At Corepay, we pride ourselves on transparency. We have a straightforward application process and do our best to ensure you are approved quickly.

• Highly competitive rates: We understand that providing you with the lowest possible processing fees allows your business to grow with optimal profitability.
• Fast approval times: Our quick approvals maximize travel merchants’ time to make sales. We can provide approvals typically between 24-72 hours.
• High-volume processing: We have our own payment gateway, Netvalve, explicitly designed for high-risk companies processing high volumes.
• Multiple currencies: We understand the importance of being able to accept different currencies
• Security: We have a PCI-Level 1 secure payment gateway that is monitored around the clock and regularly tested for security issues
• Mobile payments: You can easily accept payments from customers paying with their mobile device
• Waived application, set up, and annual fees
• 24/7 customer service

Instant Approval Isn’t Everything

Predatory companies rely on eager customers and prey on them. They know there will be people who need to get processing immediately and will look to lock you into a horrible contract.

Instead, take your time, fill out a few different applications, and make a decision that is based on fees, customer shouldn’t, and capabilities.

Getting approved by the bank/processor can be challenging if you’re a high-risk merchant.

If you find yourself waiting on approval for a few days, instead of getting roped into what seems like a promising “instant approval,” reach out to the company for an update.

At Corepay, we specialize in getting merchants approved swiftly and ensuring they stay approved.

If you’re looking to begin processing and in it for the long haul, fill out an application below and let Corepay grow your business with ultimate profitability.