Software selling merchant accounts and payment gateways

> Make A Quick Enquiry
Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Understanding the High-Risk Nature

Software selling is often deemed high risk by acquiring banks for several reasons, including the prevalence of card-not-present transactions, historically higher chargeback rates, restrictions based on merchant location, and limitations on processing payments worldwide.

Expert Guidance for Merchant Services

If you’ve faced declined merchant account applications or termination from existing providers, rest assured that navigating high-risk card processing, especially in software sales, is a common challenge. While one rejection doesn’t seal your fate, exploring alternative avenues beyond mainstream payment providers may be necessary.

Application Process for Payment Processors

Before submitting multiple applications, it’s crucial to assess if your software business aligns with the criteria set by payment processors. Understand the complex considerations based on business type, trading location, and currencies. Enlist the help of a non-biased broker if needed to streamline the application process.


Credit Card Processing and Terms

Upon application submission, the chosen bank’s underwriting team evaluates your business to determine whether they’ll handle card processing. Successful applications result in presented terms, including potentially higher rates and fees. Managing the risk involves considerations like rolling reserves, and periodic switching of banks is recommended for favourable processing costs.


Instant Approval Challenges

Due to the high-risk nature of software selling payment processing, instant approval merchant accounts are not readily available. Banks require adequate time for thorough underwriting, which can take up to ten working days. To mitigate risks of termination, consider having more than one merchant account as your business expands.

Selecting the Right Payment Gateway

Given that most card payments for software sales occur online, choosing the right payment gateway is crucial. Consider aspects such as security, chargeback and fraud management, integration capabilities, support for recurring payments, and coverage for international transactions

Security: Prioritise payment gateways with high PCI DSS compliance ratings for enhanced online transaction security.

Chargeback and Fraud Management: Choose gateways that assist with managing chargebacks, particularly crucial in high-risk industries.

Integration: Ensure seamless integration with your merchant account and website provider, and consider additional integrations for efficiency.

Recurring Payments: If your software business operates on a subscription model, opt for gateways that support recurring payments.

Start Your Enquiry Here

Our team of UK based advisors are waiting for your call.


How Merchant Account Solutions (MAS) Can Help

Merchant Account Solutions (MAS) specialises in navigating the complexities of high-risk industries, providing tailored solutions for software selling businesses. Our experts guide you through the application process, ensuring compliance and optimal payment processing. Learn more on how MAS can help on our Merchant Services page.

When selling software, it’s important to choose the right payment processing company. This choice affects your transaction fees and how you handle credit card payments, including American Express and Apple Pay. Whether it’s for one-time purchases or recurring charges, the right processor makes real-time payments smooth and secure.

Look for a company offering competitive monthly fees and transparent pricing. Avoid high setup fees and focus on firms that support mobile payments and various products and services. It’s also wise to consider your business banking needs and how they align with the payment processor.


By following these steps, you can navigate the complex world of payment processing with confidence. For more tips and advice, don’t forget to check out our other blog posts!


Need help choosing the right merchant account?

Start your enquiry here

Contact Us
Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

Read more
Read less
More From This Author

Make A Quick Enquiry

Speak to us directly and get any questions you have answered. Submit your details and we’ll be in touch shortly.

Alternatively you can contact us directly using:0800 304 78 75

Just so you know, we take your privacy seriously and will only use your personal information to contact you via phone, email or text with updates on the progress of your enquiry and provide information only on relevant products and services.