High-Risk Merchant Account Instant Approval: Is it Possible?

Dennis Pedersen

Dennis Pedersen

High risk merchant account instant approval

Have you ever come across ads promoting “high risk merchant account instant approval”? Don’t fall for the claims of merchant account providers who promise instant approval!

Unlike regular accounts, high-risk merchant accounts come with a higher level of risk. They are specifically designed for businesses with a higher risk of chargebacks or fraud. High-risk businesses face challenges when it comes to getting approvals and accepting payments. 

It’s important to be aware that merchant account providers who promise instant approval may not be telling the whole truth. 

Approval for high-risk merchant accounts is not as straightforward as it may appear. Merchant account providers need time to assess the risk associated with these businesses before granting approval. They carefully evaluate factors such as the industry, financial stability, and chargeback history of the business. 

While it’s possible to expedite the approval process for a high-risk merchant account, it’s advisable not to rely on merchant service providers that guarantee instant approval. This could result in account terminations and withholding of funds, which could lead to a less-than-ideal payment processing experience in the long run.

Can you get instant approval for a high-risk merchant account?

Getting instant approval for a high-risk merchant account is usually not possible due to various reasons such as high chargeback rates, bad credit history, or high-volume transactions that exceed the limit. 

Some of the ways to speed up the approval process include:

  1. Providing accurate and detailed information – To minimize delays or additional requests provide complete information about your business, financial statements, processing history, and relevant documentation.

  2. Maintaining low chargeback rates – Acquiring banks are cautious of high chargeback rates with high-risk merchant accounts. Lowering chargebacks is essential for fast approval. Implementing fraud prevention, providing excellent customer service, and resolving issues promptly can reduce chargebacks and demonstrate a commitment to risk management.

  3. Improving credit history – Getting instant approval for a high-risk merchant account with bad credit can be challenging, but not impossible. Improve your credit history by paying off debts, addressing past issues, and showing responsible financial management to increase your chances of approval.

  4. Choosing a reputable payment provider – A payment provider specializing in high-risk merchant accounts can speed up approval by working with banks that are more receptive to such businesses. They understand the unique challenges faced by high-risk merchants and can help them navigate the application process more efficiently.

Instant approval vs auto-approval vs pre-approval

Providing instant approval of High-risk merchant accounts is not possible due to the extensive underwriting and risk assessment involved.

The application requires a review of credit history, financials, industry type, and other factors affecting payment processing risk. Additional documentation and verification may be required, lengthening the process. 

While some providers may pre-approve applications, the final approval process typically takes time to complete to properly assess the business’s risk.

Pre-approval involves a pre-screening and assessment process to identify suitable acquiring banks for a new merchant account. Pre-approval does not guarantee approval, but it is successful in the majority of the cases. 

Certain merchant providers also have the option of auto-approving high-risk accounts, which means they are not fully approved but still have a good chance of getting approved.

Payment processors have the ability to auto-approve accounts that fall under the mid-risk category, and sometimes even high-risk accounts, depending on factors such as high-risk transactions, industry, and business history.

How long does it take to approve a merchant account?

Getting approved for a merchant account can be a bit of a waiting game, as it depends on several factors such as the type of business, processing history, and underwriting standards of the provider.

It can typically take a few days to weeks to get a merchant account approved.

There are several factors that can affect the approval process, including incomplete or inaccurate information on the application, discrepancies in supporting documentation, a high-risk profile for the business, and requests from the provider for additional information or documentation. 

To assess the risk of fraud, payment providers may also review your sales volume, processing history and other factors. For businesses in a high-risk industry, such as online gambling and casino, CBD and cannabis businesses, cryptocurrency, or adult entertainment, the approval process may take longer due to increased scrutiny.

Some providers may be able to approve a business within a day or two, while others may take longer. Keep in mind that high-risk industries or poor credit history may lengthen the approval process.

Bad credit merchant accounts – can they get instant approval? 

Bad credit or delayed payments can reduce approval chances, especially in high-risk industries. Traditional banks avoid businesses with bad credit, so finding a high-risk payment solution is important. 

Payment service providers like Square or PayPal offer a quicker and easier way to accept card payments without a full-service merchant account. While these providers don’t require a credit check, they may terminate accounts or withhold funds for unusual activity or violation of policies. 

For bad credit merchant accounts, the approval process may require more paperwork and time, but it offers stability and less risk of sudden fund freezes or account terminations. 

How to make sure you’re eligible for a high-risk merchant account?

To increase your chances of qualifying for a high-risk merchant account, it is essential to build trust, keep a positive credit record, complete and submit all necessary documents, follow transaction limits, and steer clear of large transactions. By carefully considering these aspects and implementing the right strategies, you can improve your likelihood of securing a high-risk merchant account and efficiently handle your payment processing requirements.

Ensure complete documentation is ready 

Payment processors usually ask for a range of documents, including identification proofs, bank statements, business licenses, and tax returns.

It’s crucial to thoroughly go through the application requirements and make sure all the necessary documents are complete, accurate, and submitted on time. If any paperwork is missing or incomplete, it could cause delays in the approval process or even result in rejection.

Establish credibility

Obtaining a high-risk merchant account requires credibility. Payment processors want to be confident that your business is trustworthy and dependable.

To establish this credibility, it’s important to give accurate and current information about your business, such as its background, ownership, and any licenses or certifications that are relevant.

Keep within transaction limits

High-risk merchant accounts usually have transaction limits in place to minimize the risks of fraud or chargebacks.

It’s important to know and follow these limits to keep your business running smoothly. Going over these limits can lead to penalties, account suspension, or even termination. 

Maintain good credit history

Maintaining a good credit history is also essential, as payment processors assess your creditworthiness to determine the level of risk associated with your business.

A good credit history demonstrates financial responsibility and lowers the perceived risk. 

Avoid large transactions

When it comes to high-risk businesses, large transactions can be perceived as suspicious and can raise red flags. To be cautious, it’s best to break down bigger transactions into smaller ones or consider using different payment methods.

By showing responsible transaction behavior, you can reduce any uncertainties and improve your chances of getting approved.

4 Tips to speed up the process of getting a high-risk merchant account fast?

If you want to obtain a high-risk merchant account fast, there are a couple of suggestions that can help you accelerate the process. 

1. Build a transparent and trustworthy relationship with your payment processing provider

To gain the trust of the payment processor and expedite the approval process, it’s vital to be transparent and open about your business and any possible risks.

Make sure to fully disclose the nature of your business and any potential financial issues. 

By providing accurate and up-to-date financial statements, banking records, and tax returns, you can demonstrate the stability and growth of your business. 

2. Set up a business bank account

It’s important to have a dedicated business bank account set up. Even if you’re in a high-risk industry, having a business banking provider can speed up the approval process.

Partnering with a payment processor that specializes in high-risk accounts might be able to expedite the procedure. 

3. Keep payment processing history documentation ready

Additionally, be prepared to supply your payment processing and transaction history, including recent statements, to show that your business has a reliable track record.

Consistency in your monthly volume, average ticket, and high ticket amounts is crucial to building trust with your merchant provider. 

4. Ensure necessary business licenses are ready

If you’re selling products or services that require licensing, make sure you have all the necessary licenses in place to expedite the approval process.

Research the licensing requirements for your specific industry and seek guidance from relevant authorities. By doing so, you can avoid potential setbacks and ensure that their operations are compliant with regulations.

3 things to pay attention to when researching companies offering instant approval?

It’s a red flag if a merchant account provider promises immediate approval for high-risk merchants. Even if you’re working with a reputable merchant account provider, it still requires time to approve various documents. So, don’t fall for false promises of instant approval.

Here are some of the warning signs you need to pay attention to:

1. Misleading communication 

Providers who claim to offer “instant approval” are misleading. The fine print often reveals that approval can take up to 48 hours, which is faster than usual but not truly instant.

It’s important to be aware of the two-step process involved in merchant account approval. First, you need to be approved by your merchant account provider. Then, you must also be approved by the acquiring bank that underwrites your account and processes your transactions. This process can take anywhere from three days to five weeks, so don’t expect instant results.

2. Watch out for hidden fees

The type of merchant account that promises instant approval for high-risk businesses often boast about having “no setup fees.” 

Although they may not charge a direct “setup fee,” they have alternative methods to impose other fees to compensate for it. So look at the fine print and understand all the costs involved before choosing your payment provider.

3. Allowing processing before approval

If the processor allows you to begin processing before the bank has given their approval, you’re taking a risk. Your account could be frozen or even terminated, which may result in your name being added to the MATCH List or Terminated Merchant File (TMF).

This could potentially hinder your chances of getting approved for any merchant account for a period of up to five years. Therefore, stay cautious and wait for the proper approvals before starting your processing process.

How can PayFasto help you get a high-risk merchant account fast?

PayFasto is a leading provider and is specialized in the high-risk industry. We have established strong partnerships with a vast network of banks and payment processors, allowing you to identify the ideal fit for your specific business requirements.

One of the key advantages of choosing PayFasto is our commitment to minimizing risks. We understand the unique challenges faced by high-risk businesses and offer effective fraud prevention tools and chargeback management services. 

These tools and services are designed to protect your business from fraudulent activities and help you effectively manage any chargebacks that may occur.

With streamlined processes and extensive network, you can secure approval for a high-risk merchant account with speed. Our quick turnaround time allows you to start accepting payments as soon as possible. 

The approval process can vary from as little as 24 hours to over 3 weeks. The time frame depends on how quickly the merchant responds and their risk profile. For low-risk cases, it usually takes around 24 hours, while high-risk cases may take 2-3 weeks or even longer.

In addition to the fast approval process, PayFasto also offers competitive rates and transparent pricing. We understand the importance of cost-effectiveness for businesses, especially those in high-risk industries. You can expect fair and reasonable pricing that aligns with the value and services.

PayFasto - high risk merchant account instant approval

How can you set up your merchant account with PayFasto?

Setting up a merchant account with PayFasto is a simple process. Here are the key points to keep in mind: 

  1. Registration and Sign Up: To begin, you’ll need to register on the PayFasto website. Provide your personal and business information, including your name, email address, and company details. 
  2. Verification: PayFasto requires verification to ensure secure transactions. You’ll need to submit necessary documents, such as proof of identity and address, to complete the verification process. Here’s a summary of the necessary documents required to meet the criteria for approval of a merchant account. 
  3. Bank Account Integration: Linking your bank account to your PayFasto merchant account is crucial for receiving payments. Follow PayFasto’s instructions to securely integrate your bank account. 
  4. Payment Methods: PayFasto supports various payment methods, including credit cards, Instant EFT, and digital wallets. Choose the payment methods that best suit your business and enable them in your merchant account. 
  5. Customization: You can personalize your payment page to match your brand’s appearance. You can add your logo, change colors, and customize the checkout process to provide a seamless experience for your customers.

Prioritizing the security of your transactions, PayFasto uses industry-standard encryption and comply with PCI-DSS requirements to safeguard sensitive customer data. 

Moreover, with comprehensive reporting and analytics tools you can track sales, monitor transaction trends, and gain insights into your business performance.

Need a merchant account provider that offers quick approval time?

Easily and securely set up your merchant account with PayFasto and start accepting payments from your customers.

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Dennis Pedersen
CEO & Founder of PayFasto. I have achieved a long time dream of helping advertisers with getting the processing setup they always wanted! This is something i wanted when i had my own offers.
Dennis Pedersen
CEO & Founder of PayFasto. I have achieved a long time dream of helping advertisers with getting the processing setup they always wanted! This is something i wanted when i had my own offers.


CEO & Founder of PayFasto. I have achieved a long time dream of helping advertisers with getting the processing setup they always wanted! This is something i wanted when i had my own offers.