Last updated on March 22nd, 2025 at 11:03 pm
Merchant Account for Moving Companies: An Insider’s Guide
A merchant account for a moving company is a specialized payment processing solution that allows moving businesses to accept credit and debit card payments. Other payment methods that are offered with moving company merchant accounts include echeck, ACH, wallet payments, and bank transfer. Credit card processing for moving companies is considered high risk, and that is why low-risk processors do not support such merchants. However, high-risk PSPs are ok to work with moving companies.
As per Mordor Intelligence, the global moving services market size will reach USD 143.18 billion by the year 2030. The industry presents massive opportunities for businesses operating in it. However, for these moving businesses, getting a merchant account is not easy. QuadraPay has been assisting moving and transport businesses since the year 2016. We are experts in providing credit card processing accounts to moving companies. Our team has created this extensive guide meant to educate you about every aspect of moving business merchant processing. We are confident that you will benefit a lot from this guide. Let’s begin.
Why Are Merchant Accounts for Moving Companies Considered High Risk?
Moving company merchant accounts are considered high risk because of many factors such as the possibility of high chargeback and fraud. Regular sponsor banks and payment processors generally avoid working with moving companies. There are many reasons behind the same. Let’s explore a few of these reasons in detail here.
High Chargeback Rates.
One of the most prominent reasons why payment processors avoid working with moving companies is the possibility of high chargeback. In the moving business, customers dispute transactions because of reasons such as service quality dissatisfaction, delay in the shipment, unexpected charges, and scam claims.
Card-Not-Present (CNP) Transactions
Many moving companies accept payments from customers over the phone or email invoice. All of these transactions are considered cards not present and are high risk. None of these transactions have any physical card verification. This leads to high fraud risk.
Large Ticket Sizes
The services offered by moving companies are not inexpensive. Most moving companies invoice customers in amounts of hundreds and thousands of dollars. Such an amount is considered a high ticket in the payment industry and can be a red flag for most low-risk processors.
Industry Reputation
Many payment processors believe that a significant number of companies operating in the moving industry use unethical practices to overcharge the customer. Some of these companies give low initial quotes and demand extra fees on the moving days. Many companies hold customers’ consignments until the extra money is paid. Some even operate without the proper license and insurance.
All these factors demotivate payment processors to onboard moving companies. Only specialized, high-risk PSPs prefer to work aggressively with merchants from such industries.
Credit Card Processing Fees for Moving Companies
The fees vary based on factors like the type of transactions and the type of cards used. It will help if you negotiate with the processor. Most processors are not that rigid when it comes to rates.
Types of Credit Card Payment Solutions for Moving Companies
Traditionally, moving companies have been operating from retail stores, and most of the orders they were getting were from local customers; however, these days, most moving companies have their own websites. Customers from all over the country as well as foreign nations can easily approach moving companies online and book services. There are two types of payment solutions used in the moving industry.
Retail POS Terminals for Moving Companies.
For a moving company that operates from a retail store and collects face-to-face payment, we recommend credit card terminals. With modern terminals, moving companies can accept all kinds of payment instruments, such as contactless cards, wallets, and APMs. These terminals come in various form factors. The bigger credit card terminals can be placed at the moving company office, and compact terminals can be handled by the retail sales team for on-the-go payment collection.
E-commerce Payments for Moving Companies.
As discussed earlier in this guide, many moving companies operate business websites where customers make online bookings. For such types of businesses, we recommend eCommerce payment processing. This way businesses can accept all types of credit and debit cards directly on the website. Many moving companies prefer to send invoices to the customer before collecting payments. This can be easily done by using the invoice payment gateway feature, which is available with online merchant accounts.
Features of Moving Company Merchant Accounts
A dedicated merchant account can be highly beneficial for your moving business. However, it is important for you to ensure that the merchant account you select comes with vital features. With these important features, you will be able to serve your customers efficiently. Let us explore these features.
Fast Payment Processing
A good merchant account will allow you to accept all major credit and debit cards. Along with that, you will also be able to accept alternative payment instruments such as e-checks and ACH. With online payment processing, you get the feature of instant payment authorization that reduces delay in transaction processing.
High Approval Rates
As discussed earlier, you should approach a payment processor that is already working with merchants from high-risk industries. If you approach the right processor, then you will be spending less time in the application process. Sending applications to regular processors that avoid working with merchants from high-risk industries will only disappoint you.
Chargeback & Fraud Prevention
You should work with a payment processor that takes chargeback and fraud prevention seriously. The payment gateway should have the option to connect chargeback alert services so that you get a notification whenever your customers raise disputes with their card company. Tools like 3DS, AVS, and AI-based fraud scoring should be present to provide defense against disputes and chargebacks.
Recurring & Installment Payments
While most of the transactions in the moving business are one-time, in rare cases, a few merchants may require an installment and recurring payment facility. Such merchants should ensure that the payment processor allows them to accept subscription and installment payments. Keep in mind that recurring payment mode is extremely important for moving companies that also offer storage rental service. Buy now, pay later (BNPL) is another option that is highly popular with high-ticket customers. Make sure your processor offers that.
Integration with Booking Software
Moving companies have become tech-driven, and they use CRM, accounting tools, and fleet management systems. Make sure that the payment solution can be integrated with your existing software setup. With proper integration, you will be able to sync the customer payment information to your CRM software. You will also be able to automate the invoicing and do proper tax calculation by using your accounting software. By connecting your payment solution with your fleet management system, you will be able to properly schedule the dispatch and improve your company’s operational efficiency.
KYC Requirements for a Moving Company Merchant Account
Every merchant must comply with the banking and financial regulations, and for this they must go through the KYC review process. When you apply for a merchant account, you will have to submit some personal and business documents to the payment processor. The objective of this process is to verify the legality of your business and identify the level of risk associated with your account. By providing all the documents at one time, you will potentially get approval in a shorter time frame. Let us look at some important documents that you will have to share with the processor for the approval of a moving company merchant account.
Company registration certificate. You will have to provide a document that confirms that your company is legally registered and is valid to operate. Depending upon the type of company structure, the proof of business registration will differ. In most cases, a document similar to a certification of incorporation should do the job. Payment processors prefer to work with companies that have structures like LLC, corporation (C-Corp/S-Corp), or limited company.
Tax Identification Number (EIN). The payment processor will ask for a business tax ID number. This requirement is for mandatory tax reporting and regulatory compliance. In case you operate as a sole proprietor, then you may submit your social security number.
Recent Bank Statements (Last 3–6 Months). By submitting the latest bank statement, you will represent the financial strength of your company.
Special License. In many countries, moving businesses require special licenses; for example, in the US, they must have a USDOT number. It is mandatory for all interstate moving companies to have the USDOT number to operate legally in the US. If a license is mandatory in your nation, then you will have to share it with the processor.
Application Process for a Moving Company Merchant Account
The process of applying for a moving company merchant account is simple and does not have any complexities. Follow these simple steps for quick results.
Submit Application Form
The first step is to submit the merchant account application form to the payment processor. In the application form you will have to mention details related to your business such as the type of your business structure, the industry that you are operating in, and the projected monthly sales volume. You should ensure that the information provided in the merchant account application is accurate, as it will have a significant impact on the approval. Along with the application, you will also have to submit the KYC documents. These documents have already been discussed in the previous section of this guide.
Risk & Compliance Review
Once you send the application and the KYC documents to the payment processor, then the review process will start. The underwriters will check all documents submitted by you and will identify the chargeback risk. They will also carefully examine the legal status of your business and check if your organization meets mandatory licensing and insurance requirements.
Approval & Payment Gateway Setup
Once the underwriting team approves your account, they will share with you the merchant account ID (MID) and gateway login. You will be able to integrate the payment gateway on your website. Some providers may also have virtual terminals.
Start Accepting Payments
After performing some test transactions, you can start accepting live orders from your customers.
Approval Timeline for Moving Company Payment Gateway
The standard approval time for a moving business merchant account is 7 business days; however, if the merchant’s profile is complex, then this timeline may extend up to 14 business days. Remember that the timeline can extend because of various other factors such as incomplete documentation, missing license, and previous account shutdown.
Moving Business Merchant Processing: Conclusion
For any moving business, getting a merchant account is not an option but is a necessity. By offering your customer the ability to make payments using credit and debit cards, you offer them comfort. This results in better customer satisfaction and improved sales numbers. Remember, moving companies are considered high risk by standard payment processors, and that is why you should only approach a specialized high-risk payment processing company. Carefully look at the features offered, as it can have a significant impact on the overall performance of the payment solution.
If you have any further questions related to credit card processing for your moving business, then do not hesitate to contact us. Send us any email at [email protected].
