December 4, 2025
Written by: Merchant Connect UK
Applying for a merchant account is an essential step for any business that wants to accept card payments online or in-store. But if your merchant account application keeps getting declined, you’re not alone. Many businesses — especially those in high-risk sectors — struggle to secure approval from traditional banks and processors.
At Merchant Connect, we help UK and European businesses navigate these challenges and get approved faster by connecting them with trusted high-risk payment providers. Here’s why your application might be getting declined — and what you can do about it.
Banks and traditional processors often label industries like gaming, forex, adult, crypto, and CBD as “high-risk.” This classification doesn’t mean your business is bad — it just means there’s a higher chance of chargebacks, fraud, or regulatory issues.
Solution:
Work with a specialised high-risk payment provider like Merchant Connect that understands your industry. We partner with acquiring banks and PSPs that actively support high-risk sectors rather than reject them.
Missing or inaccurate information in your application is one of the most common reasons for rejection. Providers need to verify your business legitimacy, ownership, and operational setup.
Solution:
Prepare all required documentation in advance:
Valid business registration and proof of address
ID and ownership documents
Business bank statements
Website URL showing compliant terms & conditions
A well-prepared file increases your approval odds significantly.
If your website lacks key elements like refund policies, terms & conditions, or clear product descriptions, banks will often decline your application. They see this as a compliance risk — especially for e-commerce and subscription models.
Solution:
Ensure your website has:
SSL security (HTTPS)
Visible refund and privacy policies
Contact details and customer support information
Clear product or service descriptions
Merchant Connect can help audit your website before submission to make sure it meets compliance standards.
Processors monitor chargeback levels closely. If you’ve had excessive chargebacks in the past or operate in a sector known for disputes (like online gaming or digital goods), approval becomes difficult.
Solution:
Implement chargeback prevention tools and fraud monitoring systems. Some acquirers will approve your account if they see proactive steps to manage risk — like using 3D Secure or anti-fraud filters.
Providers want to see financial stability. If your business is new, has inconsistent revenue, or the directors have poor credit history, banks may hesitate to approve your application.
Solution:
Show strong financials — or work with a payment facilitator that accepts newer businesses. Merchant Connect partners with PSPs that offer flexible approval criteria and support for startups and growing merchants.
Not every acquiring bank or PSP supports all industries or business models. Many applications are declined simply because the provider doesn’t cater to your vertical.
Solution:
Apply through an experienced intermediary like Merchant Connect, who will match your business profile to the right banking partner. This saves time, protects your credit profile, and boosts your success rate.
If your application doesn’t clearly explain your business model, transaction flow, or refund policy, it can raise red flags. Providers want to see transparency about where funds come from and how customers are charged.
Solution:
Provide clear documentation of your operations — including supplier agreements, customer contracts, and payment flows. Transparency builds trust with underwriters.
A declined merchant account application doesn’t have to be the end of the road. Most rejections happen due to easily fixable issues — from missing documents to applying with the wrong provider.
At Merchant Connect, we specialise in helping high-risk and hard-to-place businesses get approved quickly. Our network of UK and EU acquiring partners ensures secure, compliant, and scalable payment solutions tailored to your business needs.
Apply today with Merchant Connect and let our team help you secure the merchant account your business deserves.