Merchant Facility Rejection

[BB]

Hi Dinesh,

Just like you, the banks operate as a business and therefore, the bottom line is - MAKE MONEY!

Not knowing what sort of retail business you are opening, my thoughts as to some of the reasons that the banks are not giving you a merchant facility could be
(a) they can't see how your venture will make money
(b) they can't see how they will make money
(c) they can't see that you will pay your merchant fees
(d) they need to see how you are funding your venture

You need to be very transparent in explaining how your business will run, how you are being funded, where your bank accounts are etc. The bank won't have a problem with your application if you be very honest and explain everything to them. If you are not forthcoming with the details of your business, they will not provide what it is that you ask for.

Imagine that you are the bank -what would you need to know before you provided a merchant facility?

cheers,

B.B.

[tee_man]

Dinesh, are you trying to get an internet merchant facility or the regular POS merchant facilities. If just a regular POS for retail store that should be much easier, just have a good business plan written and profit/loss statement plus all the other documents they request. Perhaps even run it through a professional agency to make sure it looks good.

An internet merchant facility for a new businss is another ball game. It took me months before I got mine. Countless rejections from the Big4. Each time they wouldn't give a reason why. In the end I went with St George. Accepted the first time round and got the merchant facility running within a week. The first bank I've ever dealt with who seemed to really care about small business.

[Dinesh]

Hi,

Thank you for sharing your practical experience. I am going to apply in St george on tomorrow. But i dont have ABN ( I have ACN) I Applied for ABN two week ago but still not recieved. Is ABN should be matter? ( Actualy i asked to ATO to provide me ABN but they said Sorry and told me it could take 28 Days)

I just need direction from your past experience.

Thank you.

Regards,
Dinesh

Originally Posted by tee_man

Dinesh, are you trying to get an internet merchant facility or the regular POS merchant facilities. If just a regular POS for retail store that should be much easier, just have a good business plan written and profit/loss statement plus all the other documents they request. Perhaps even run it through a professional agency to make sure it looks good.

An internet merchant facility for a new businss is another ball game. It took me months before I got mine. Countless rejections from the Big4. Each time they wouldn't give a reason why. In the end I went with St George. Accepted the first time round and got the merchant facility running within a week. The first bank I've ever dealt with who seemed to really care about small business.

[Dinesh]

Hi,

I understand bank policy but i dont understand reason to hiding reason for rejection. Hiding reason create lots of doubt in mind of new comer. Why they are hiding. Whatevere reason they have to tell us clearly. In my situation i spent 1000 $ to know reason ( account and lower).

If bank dont hide reason then atleast i could save $1000. And stress is Bonus.

Thank you.

Regards,
Dinesh

Originally Posted by B.B.

Hi Dinesh,

Just like you, the banks operate as a business and therefore, the bottom line is - MAKE MONEY!

Not knowing what sort of retail business you are opening, my thoughts as to some of the reasons that the banks are not giving you a merchant facility could be
(a) they can't see how your venture will make money
(b) they can't see how they will make money
(c) they can't see that you will pay your merchant fees
(d) they need to see how you are funding your venture

You need to be very transparent in explaining how your business will run, how you are being funded, where your bank accounts are etc. The bank won't have a problem with your application if you be very honest and explain everything to them. If you are not forthcoming with the details of your business, they will not provide what it is that you ask for.

Imagine that you are the bank -what would you need to know before you provided a merchant facility?

cheers,

B.B.

[Dinesh]

Hi,

Also commenwealth did not ask me to provide any document when i applied. They have to ask me to submit document if they need / want. But they didnt ask for any single document during application or after application.

I understand if bank ask for perticular document and then i cant provide it then they have right to reject my application. But in my case they just accept my application for rejection.

Thank you.

Regards,
Dinesh

Originally Posted by B.B.

Hi Dinesh,

Just like you, the banks operate as a business and therefore, the bottom line is - MAKE MONEY!

Not knowing what sort of retail business you are opening, my thoughts as to some of the reasons that the banks are not giving you a merchant facility could be
(a) they can't see how your venture will make money
(b) they can't see how they will make money
(c) they can't see that you will pay your merchant fees
(d) they need to see how you are funding your venture

You need to be very transparent in explaining how your business will run, how you are being funded, where your bank accounts are etc. The bank won't have a problem with your application if you be very honest and explain everything to them. If you are not forthcoming with the details of your business, they will not provide what it is that you ask for.

Imagine that you are the bank -what would you need to know before you provided a merchant facility?

cheers,

B.B.

[tee_man]

I feel your pain Dinesh. ANZ even made me sign up to a business account with them before they even considered my merchant facility application. Then they rejected it a few weeks later! They won't tell you the reason because according to them its 'a privacy policy'.

[Diana]

Hi Dinesh,

at times I am having trouble understanding your grammar and what you are saying and am wondering if the banks are finding this also.

If you feel this might be the case, could you take someone with you whose first language is English?

Good Luck
Diana

[Dinesh]

Diana,

Thank you. Unfortunately Nobody with me with fluent english. Sorry for that.

My problem is merchant facility. Couple of big bank declined my application for merchant facility without declaring reason. i would like to get advise and looking for right direction. and that why i am here in forum.

I am new in business and going to open retail shop.

Regards,
Dinesh

Originally Posted by Diana

Hi Dinesh,

at times I am having trouble understanding your grammar and what you are saying and am wondering if the banks are finding this also.

If you feel this might be the case, could you take someone with you whose first language is English?

Good Luck
Diana

[kathiemt]

Dinesh, it would appear we are not equipped with enough information to help you. You have nothing in your profile to indicate where you are located so it's hard to recommend local resources for you also.

My recommendations would be to find a new Accountant if you're not happy with your current one. And look for the local government business support dept in your state. Here in Victoria there is Small Business Vic. There is sure to be similar wherever you are and perhaps you can go to them for advice and help. You really need someone close by who can look at your current setup and advise you accordingly.

[WAHM]

Hi Dinesh,

Sorry to hear of your troubles.

To use eway you will still need a merchant facility.

I am a new business and got mine through Commonwealth but used them for years as my personal banking.

I am with kathiemt - get a new acountant

Maybe get an interpreter to help you as well.

Hope you sort it out soon