Common Reasons 3D Printing Businesses Get Rejected for Merchant Accounts (And How to Avoid Them)

Common Reasons 3D Printing Businesses Get Rejected for Merchant Accounts (And How to Avoid Them)

Starting a 3D printing business is exciting, but getting a merchant account to accept payments can be frustrating. Many 3D printing companies face rejections when applying for payment processing. Why does this happen, and how can you avoid it?

In this guide, we’ll break down the most common reasons for rejection and provide practical solutions. We’ll also discuss how working with the best high-risk merchant account providers can improve your chances of approval.

Why Do 3D Printing Businesses Struggle to Get Merchant Accounts?

Banks and payment processors see 3D printing as a high-risk industry. This means they worry about chargebacks, fraud, and legal issues. If you’ve been rejected before, it’s likely for one of these reasons:

1. High Chargeback Risk

Why it happens:

• Customers dispute charges if the 3D print doesn’t match expectations.
• Long production times can lead to impatience and refund demands.

How to avoid it:

• Provide clear product images and descriptions.
• Set realistic delivery timelines.
• Use a reliable high-risk merchant account service provider that specializes in chargeback protection.

2. Lack of Business History

Why it happens:

• New businesses with no sales history look risky to banks.

How to avoid it:

• Start with alternative payment methods (bank transfers, PayPal) to build transaction history.
• Apply through best high-risk merchant account providers that work with startups.

3. Selling Restricted or Controversial Items

Why it happens:

• Some 3D-printed products (like firearm parts or medical devices) face strict regulations.

How to avoid it:

• Avoid selling items that could trigger legal issues.
• Be transparent with your merchant provider about what you sell.

4. Poor Credit or Financial History

Why it happens:

• Banks check your personal/business credit score before approval.

How to avoid it:

• Improve your credit score before applying.
• Choose high-risk merchant account service providers that don’t rely heavily on credit checks.

5. Weak Website or Lack of Professionalism

Why it happens:

• A poorly designed website looks untrustworthy.

How to avoid it:

• Use a professional domain (not a free one like yourbusiness.wordpress.com).
• Add clear policies (returns, privacy, shipping).
• Display contact information and customer support options.

6. High Transaction Volumes with Low Reserves

Why it happens:

• Processors fear you won’t cover chargebacks if sales suddenly spike.

How to avoid it:

• Keep some funds in reserve.
• Work with the best high-risk merchant account providers that offer flexible reserve policies.

How to Improve Your Approval Chances

Now that you know the common rejection reasons, here’s how to fix them:

1. Choose the Right Payment Provider

• Look for high-risk merchant account service providers experienced in 3D printing.
• Avoid traditional banks—they often reject high-risk businesses.

2. Build a Strong Business Profile

• Register your business officially (Companies House in the UK).
• Open a separate business bank account.
• Get a professional website with SSL security.

3. Manage Chargebacks Proactively

• Use tracking numbers for all shipments.
• Respond quickly to customer complaints.
• Offer refunds politely to avoid disputes.

4. Start Small & Scale Up

• Begin with lower transaction volumes to build trust.
• Gradually increase limits as your business grows.

5. Be Honest in Your Application

• Don’t hide what you sell.
• Explain how you mitigate risks (e.g., quality control, fraud prevention).

Final Tips for Success

Be patient – High-risk accounts take longer to approve.
Keep records – Document transactions and customer communications.
Stay compliant – Follow all industry regulations.

By understanding why rejections happen and following these steps, you can secure a best high-risk merchant account for your 3D printing business.

Need help? Reach out to Payfac Solutions today and get back to growing your business!