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High Risk Merchants
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Massage Parlors (Sexually Oriented)
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Escort Services (Sexually Oriented)
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Internet Gambling/Gaming
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Roving Merchants (i.e. Door-to-Door Sales)
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Drug Paraphernalia
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Sex Paraphernalia
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Phone Solicitation by Outbound Telemarketing /“Boiler Room“ Enterprises
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Audio Text Telephone Sales
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Internet Adult Videotext
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MOTO/Internet Tobacco & Firearm Products
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Credit Repair Services
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The following businesses by nature of their transactions pose higher levels of risk. Such businesses are approved on a case-by-case basis and may be subject to a reserve and/or DDA requirement.
Accounts Requiring Special Approval
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Airlines
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Furniture Sales
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Limousine / Car Services
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Moving or Storage Companies (excluding self storage)
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Camera Sales
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Merchants that sell Intangible Goods or Services (Career/Financial Counselors, etc.)
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Bail Bondsmen
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Dating Services/Singles Search
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Prepaid Calling Cards/Telephone Communications
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Tour/Travel Agencies
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Timeshares
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Employment Agencies
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Computer Software Stores
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Membership Country/Health Clubs
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Mail or Telephone Order Businesses
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Theater Agencies/Ticket Companies
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Merchants that process Deposit, Reservation or Advance Payment transactions for future delivery or performance of goods or services (except Hotels)
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Any new merchant processing more than $50,000 per month in sales volume
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Demand Deposit Requirement (DDA)
The MyECheck/First Regional Bank program is unique in that it is designed to confidently provide merchant accounts to a wide spectrum of industries and individuals even though the business may be new or the principles have less than satisfactory credit. Some of this confidence is gained through requiring processed funds to be deposited into a DDA account with FRB. The following business circumstances require a FRB DDA for approval if monthly sales volume is $5,000 or more. A reserve account may also be required on a case-by-case basis.
New Business: Any business that is not two years old or that is under new ownership is considered a new business and must maintain a DDA with First Regional Bank.
Unsatisfactory Credit History of Principals: Unsatisfactory credit history of the principal(s) indicates a potential risk to longevity in business; therefore, businesses whose principal(s) have unsatisfactory credit histories are required to maintain a DDA with First Regional Bank. ACH distribution of processed funds to the merchant’s local bank will not be available.
Businesses with High Non-Face to Face Activity: Any business that sells or projects that they will sell over 30% of their product non-face to face (key entered) must maintain a DDA with FRB while the processing relationship exists. Additionally, mail/telephone order or sale over the Internet type of merchants must maintain a DDA with First Regional Bank.
Home Based Business: Any business that does not operate out of a separate storefront, i.e., all business is coordinated and conducted out of the owner’s residence, must maintain a DDA with First Regional Bank.
Waiver in Special Circumstances: In some cases, the DDA and/or reserve requirement may be waived but this will be done on a case-by-case basis and shall require authorization from First Regional Bank.
Signature Requirements
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Sole Proprietor
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Business owner must sign for execution of the agreement and also sign the guarantor line of the agreement.
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Partnership
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One Partner must sign for execution of the agreement and also sign the guarantor line of the agreement.
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L.L.C.
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One member must sign for execution of the agreement and also sign the guarantor line of the agreement.
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Corporation
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An officer named in the corporate resolution must sign for execution of the agreement and the President must sign on the guarantor line of the agreement
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Note: There may be occasions when the guarantee of other officers are required so it is prudent to have all officers listed on application to sign the guarantor line at the time of initial application.
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