How to get approved for a PayPal High Risk Merchant Account

Businesses in certain industries face unique difficulties in buying payment processing accounts. Although PayPal high risk merchant account doesn't truly sell as its own distinct product class, businesses within industry sectors usually considered high-risk still might be able to operate through PayPal by taking strategic actions to improve their approval prospects.

Learning What Satisfies High Risk Classifications

Entertainment, gaming, travel agencies, subscription boxes, collection of debts, telemarketing, and high chargeback businesses have been classified as high-risk businesses in the past. PayPal considers each business independently based on more than just industry type alone, such as business model, transactional patterns, and past history of compliance.

Prepare Detailed Documentation

Thorough preparation greatly increases chances for approval. Gather required documents like business licenses, tax ID numbers, bank statements, financial projections, and business plans. Include product or service information, target market, and risk mitigation practices. For established businesses, provide transaction histories and chargeback management reports demonstrating sound operations.

Practice Superior Business Habits

PayPal prefers companies that have strong operating systems. Ensure your website posts readable terms of service, privacy statements, and return policies. Maintain good customer service practices and detailed records of customer contact. Practice open billing and avoid deceptive marketing that results in increased dispute rates.

Start with Lower-Risk Products

If you have more than one vertical under your business, begin by applying first using your highest-risk products or services. Having first been approved with PayPal and demonstrating yourself to be safe, you can then implement higher-risk products or services gradually. In this manner, you build trust and demonstrate yourself to be capable of managing risk.

Consider Alternative Solutions

If receiving direct approval from PayPal is not feasible, explore the PayPal partner network. There are payment processors that have expertise in high risk sectors but provide PayPal integration through third-party options. These providers already have a relationship with PayPal and can open the door to PayPal's payment system.

Work with Specialized Consultants

High-risk industry-specific payment processing consultants are aware of the criteria PayPal applies to review applications and can get your application seen in a positive light. They help with paperwork, business structure optimization, and compliance with the industry.

Highlight Compliance and Transparency

Show compliance with regulations applicable in your business area. Be open in communication with PayPal throughout the application process. Be truthful in reporting your business model and possible risks, but highlight your risk management strategies and adherence to good practices.

Keep an Eye on and Keep Your Account Healthy

Following approval, maintain low chargeback rates, respond quickly to customer complaints, and adhere strictly to Paypal high risk merchant account usage policies. Maintaining account health statistics in check regularly ensures continued access to PayPal services and can provide access to additional features in the future.