When Authorize.net Drops your Merchant Account

An Authorize.net high-risk merchant account is custom-made for companies in unique businesses. If your account is frozen, you'll need to find a fast solution. This guide will help you understand what to do next and how to apply for a service that integrates with a high-risk merchant account.

Understanding High-Risk Merchant Accounts

Dedicated vs. Aggregate High-Risk Merchant Accounts

Dedicated High-Risk Merchant Account:

• Has its own merchant ID
• Not shared with other businesses
• Transactions deposit directly into the business bank account
• Offers more control to the business

Aggregate High-Risk Merchant Account (e.g., Authorize.net):

• Uses one merchant account for multiple merchants
• Funds go to the account provider before being deposited into the merchant's bank account
• Provider can make changes without merchant consent
• Offers less control to the business

What to Do When Authorize.net Drops Your Account

Understand the Situation:

• If dropped by one major provider, you may soon be dropped by others

Next Steps:

• Apply for a dedicated high-risk merchant account
• Seek a provider specializing in high-risk accounts
• Look for a provider that can assign you a specific merchant ID

Choosing a New Provider:

• Find a payment processor with good relationships with multiple banks
• Look for providers with in-house underwriting teams
• Seek providers that thoroughly prepare your application before submitting to banks

Benefits of Specialized High-Risk Merchant Account Providers

• Expertise in high-risk industries
• Better understanding of your business needs
• More stable long-term solution
• Potentially better rates and terms

While being dropped by Authorize.net can be challenging, it's an opportunity to find a more suitable, dedicated high-risk merchant account. By choosing a specialized provider, you can secure a more stable payment processing solution tailored to your unique business needs.