Why do some industries need extra review?

Why do some industries need extra review?

If your business is considered high-risk, you might notice the application process asks a few more questions than you expected. That’s normal, and it doesn’t mean anything is wrong with your business. Here’s what’s going on behind the scenes.

What makes an industry “high-risk”?

Being labeled high-risk isn’t a judgment on you. It’s a label the card networks and banks use for industries that, on average, come with more financial or regulatory risk. Common reasons include:

• Higher chargeback rates. Industries like subscriptions, supplements, and travel tend to see more disputes, often because of delayed delivery or recurring billing.
• Regulatory requirements. Some products, like firearms and CBD are heavily regulated, and banks need to confirm everything is being done by the book.
• Card network rules. Visa and Mastercard have specific rules for certain business types, and processors are required to follow them.
• Future delivery. If customers pay now for something they receive later, there’s more room for refunds and disputes along the way.

Mainstream processors often avoid these industries altogether or shut accounts down without warning. We’d rather take the time to understand your business upfront so there are no surprises later.

What extra review might look like

Depending on your industry, our underwriting team may:

• Ask for additional documents or licenses specific to your business
• Ask questions about how your business operates, what you sell, and how you fulfill orders
• Review your website, including your refund policy, terms, and contact information
• Set proper limits that can grow with your business

This can take a little longer than a standard approval, but it helps build an account that’s set up to last.

How to make the process smoother

• Have your documents ready. Check out What you need to apply so you’re not waiting on missing paperwork.
• Make sure your website is complete. A clear refund policy, terms and conditions, and easy-to-find contact info go a long way.
• Be upfront about your business. The clearer the picture we have, the faster we can move.

Not sure if your business qualifies? Take a look at our Restricted Businesses and Prohibited Businesses lists, or contact our team.

Start your application