Introduction
If you are a high-risk merchant, it is important to know what the risks are of opening a PayPal merchant account. This way, if something goes wrong with your account, you will be prepared to take action and fix it.
You can lose access to your PayPal account
If you are a high-risk merchant, it is important to know what the risks are of opening a PayPal merchant account. This way, if something goes wrong with your account, you will be prepared to take action and fix it.
- Your Social Security number or tax ID number
- Personal references who have known you for at least two years and/or employers who have employed for at least two years
- Proof of residence (a utility bill)
- If you fail to comply with the terms and conditions of the PayPal merchant agreement, your account may be closed.
If your business is considered high risk, it could be either that your PayPal merchant account has a significant number of chargebacks or register with suspicious email. Your business model or website content raises eyebrows.
If you are placed in this category by PayPal and they place restrictions on your account, then there are several things you should know:
You will lose access to all funds currently held in the account and any future transactions that were scheduled to go through must be cancelled immediately!
You will not be able to accept payments via PayPal merchant account until the restriction is lifted by the company itself (or removed at an earlier date). While performing a transaction through a PayPal account, it is important to know how to add money to PayPal .This can take anywhere between 3-6 months depending on how serious their concerns were about opening up another merchant account again with them in future years when needed most!
You can be restricted from accepting payments on PayPal.
If you have a high number of chargebacks, PayPal merchant accounts may restrict your account from accepting payments. This means that if you’re trying to accept payments on PayPal and get rejected, your business can be affected. You can appeal the restriction and request to be reinstated by contacting them directly.
You will have to pay a fee for the first year of having a PayPal merchant account.
The first year of having a PayPal merchant account is free, but after that you have to pay $30 per month. This fee is waived if you use a credit card and not a debit card.
You may be required to undergo an identity verification process.
You may be required to undergo an identity verification process. The PayPal Merchant Services website states that if you have a high-risk business and want to open a merchant account, you might need to provide additional information in order to verify your identity. This includes:
ยท A government-issued ID such as a driver’s licence or passport
- A utility bill showing your name and address (not just an account number)
- Your social security number
Your credit rating can be affected by your merchant account history with PayPal
A government-issued ID such as a driver’s licence or passport
A PayPal merchant account is a good way to get your business started. It’s safe and secure, and it allows you to accept payments online. You can access your money immediately and set up recurring payments, so it’s easy for customers to pay in advance or on a regular schedule–for example, monthly bills such as rent or utilities. You can also get paid in a variety of currencies, which means that international customers won’t have trouble paying with PayPal accounts that aren’t denominated in dollars (or whatever currency they use).
Risks Opening A High-Risk Merchant Account
High-risk merchants have a higher chance of being declined, chargebacks and restricted by PayPal.
If you are opening a high-risk merchant account, it is important to know what the risks are beforehand so you can prepare for them if they arise. If your business is considered high risk by PayPal Merchant Account and other payment processors, then there are certain things that could happen:
- Your application may be denied outright because of your industry or past history with other payment processors (like Visa).
- Even if your application does get approved initially and goes live on their platform, it doesn’t mean that everything will go smoothly from there. You might find yourself facing increased scrutiny from customer support agents who suspect fraud when dealing with transactions from certain industries like gambling or adult entertainment (for obvious reasons).
Also read: Why Buy Instagram Followers Via PayPal When You Can Easily Do It Yourself?
Conclusion
The best way to avoid these issues is by being prepared. Make sure that your business has a good credit rating and understands what risks are involved with opening a PayPal Merchant Account. If you do run into trouble, contact customer support immediately so they can help resolve any issues quickly!
