Unfortunately, since the start of the recession, it has become more difficult to obtain merchant accounts. The reason is that investors are gun shy about anything that carries risk. It has been this way since the mortgage meltdown.
Merchant banks normally use investor money to finance purchases. And investors do not want to invest in anything backed by paper that is risky, in any way.
In fact, it is now difficult for people with GOOD CREDIT to get mortgages, unless they can be insured by the FHA.
The tide will turn again, it always does. We may never get back to the "golden years" of 2001-2006, but it WILL get better. It is just a matter of how long it will take.
And, I have to believe that your merchant account provider is either lying to you, or at least not telling you the whole truth. I don't see how you can control whether or not someone else's card gets declined, or how many times they try to put it through. It doesn't make sense. Something else is coming into play here, although I have no idea what that might be.
You might try Charge.com. They are fairly liberal in their approvals. And, if they can't take you on as a customer, they have relationships with other processors that CAN. But the rate would be a little higher. Not astronomically so, but nobody wants to pay more than they have to. And there is no application fee. Disclosure - I am NOT affiliated with them in any way, so I do not benefit if you decide to use their services.
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