Merchant Accounts For Bad Credit History Business Owners

If you have bad credit, you should consider checking out eMerchant Authority. We offer several different merchant options for you to choose from, including different brands and different devices to accept payments.

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You May Be Considered A High-Risk Merchant

If you have bad credit, your business may be considered high-risk to payment processing companies. This can make it difficult to find a company that is willing to work with you. This doesn’t have to be the case, as there are several options out there for businesses that are considered high-risk.

If this is the case for you, you should consider checking out eMerchant Authority. They offer several different merchant options for you to choose from, including different brands and different devices to accept payments.

eMerchant Authority makes it easy to get what you need for your business to be able to accept payments anywhere, whether that is on the go or at a storefront. eMerchant Authority is the lowest-cost merchant processor you will find on the market.

Use our fast application to get a custom-tailored merchant account that fits your needs.

Applying For a Bad Credit Merchant Account

When can you apply for a bad credit merchant account? Everyone can send an application, whether low or high-risk; however, the process might differ. For example, if you’re a business owner with a bad credit score, and you went through several unsuccessful attempts, you still have a chance to accept credit card payments, but you have to find the right processor and apply for the right account. 

What risk factors can stand in your way of getting a bad credit merchant account provider and account? The processor will take a look at your credit score, bank statements, credit card transactions, chargeback ratios, processing history, and more. You have lower chances of approval if you have unpaid bills, poor credit history, a negative bank account balance, late payments, and more. 

Having the perfect credit is exceptionally hard, especially if you’re a young business. Businesses that are a part of the high-risk industry also find it difficult to accept credit card payments due to their high chargeback ratios, reputation, etc. 

Banks and other financial institutions avoid working with bad credit businesses, so in most cases, you have to search for a skilled high-risk processor that will understand your struggles and help you set up electronic payments, and allow your customers to pay with credit cards. 

Credit card processors will take a look at your:

  • Credit score
  • Company website
  • Credit card processing history
  • Chargeback ratio

One of the best ways to prepare before applying for merchant accounts for bad credit is by paying for all your outstanding bills, having money on your account, and finding an employee or a shareholder with a good credit score to apply for the account.

Having bad credit shouldn’t discourage you from applying for a merchant account. Some reputable companies started the same way, with bad credit; however, with the help of the right payment processors managed to earn the trust of the customers and boost their business credit history. The success of many businesses depends on online sales; therefore, having an account can help you grow and turn your credit from bad to good. 

Thanks to the eMerchant Authority team, you can join successful online businesses with bad credit that still managed to get an account. Our team will do its best to take an in-depth look into your needs, offer the lowest transaction fees, and process your credit card payments without an issue. 

What Should You Look for in a  Credit Card Processing Provider for Your Bad Credit Business

How should you choose the best provider for your merchant account? Here are a few tips you should keep in mind when researching a great provider:

  • Lower rates: since most bad credit merchant services and processors offer significantly higher processing rates; you should look for a more affordable plan. Of course, you can’t expect to pay the same processing rates as businesses with great credits; however, you still need a provider with decent rates. That’s exactly what we offer at eMerchant Authority. You can contact our team and get all the information you need. 
  • Check for hidden fees: take a very good look at the fees of your merchant service provider before making a deal. The monthly fees might be higher than usual, but you should carefully read the contract to avoid any hidden fees. 
  • A rolling reserve is something many bad credit merchants struggle with. This reserve allows your processor to withhold a percent of your transactions as security for chargebacks. This means that you might not get all your money right away, which can be an issue if you’re a small business and need the money. 
  •  Long-term commitment: most processors will offer you a short-term commitment; however, you should look for one willing to accept a long-term collaboration. 

Frequently Asked Questions

Does a Person Need Good Credit to Open a Merchant Account?

Card payments are the most preferred method of payment. More than half of the people living in the US prefer completing transactions with their cards. Hence, there is a need for businesses to be able to receive these payments. 

Merchant accounts allow businesses to receive credit card and debit card payments. Quite a handful of factors are considered before a merchant account can be opened. Some of them include your bank account balance, bank statement, and the most important of them all, your credit score. 

Having bad or poor credit scores can be a limitation that may delay your application process. Payment processors see businesses with poor credit scores as high-risk businesses. Bad credit businesses find it hard to find payment providers who would be willing to work with them compared to their counterparts with perfect credit.

There are, however, an increasing number of options for bad credit business. So getting a merchant account with bad credit is possible. One such option is eMerchant Authority which offers bad credit merchant accounts that your business needs to be able to receive payments. Enjoy credit card processing solutions, a secure payment gateway, credit repair, a virtual terminal, etc., with eMerchant Authority. A merchant account for bad credit can, therefore, be opened for low and high-risk businesses.

What Credit Score Is Needed for a Merchant Account?

There are various requirements you must meet to open a merchant account. But the credit scores of businesses remain the most important factor that credit card processors consider, especially for high-risk merchants and businesses.

To get a merchant account with bad credit, a perfect credit score is not required. The credit score that will be required is hugely dependent on several factors. They include the type of merchant account you seek to open, the processing volume you intend for your business, and the average ticket amount you intend. Credit reports inquiry also may or may not affect your credit score. Processing companies usually conduct credit checks to decide merchant credit scores, which vary among processing companies.

Knowing that your personal credit will not affect the rates and processing fees associated with your merchant account is also relevant. So, if your application gets approved with poor credit, the associated rate and payments will be the same as another business with strong credit. A good or bad credit score can be used for a merchant account. There is no specific credit score when opening a merchant account, but a credit score below 500 reduces the rate of decline.

Can a Person Get a Merchant Account with Bad Credit?

Merchant accounts for bad credit businesses exist. Although different merchant processors consider different things before approving a bad credit merchant account, they have some factors they consider before giving this approval. When the risks are weighed, and the risk is of a considerable degree, approval is given.

Some of these factors to be considered include the business structure, bank statements, bankruptcy, operating in a high-risk industry, etc. Processing companies consider the types of businesses they approve a merchant account for on their business structure. Are they a Limited Liability Company or a C-corporation with an employer identification number? This is one of the questions that will be used to issue risk merchant accounts. 

Also, although a processor may be willing to issue a merchant account to a business with bad credit, it may deny approval if it exists in a high-risk industry. The processor will not approve your merchant account application if you have a bankruptcy listed on your credit report.

Is Your Credit Checked When Applying for a Merchant Account?

Your credit is checked when applying for a merchant account. It is one of the most important factors considered by processing companies when giving approvals. While your credit score is not undermined or affected by this check, it is used to confirm how legit your business is.

Credit checks are used to ensure that a business is legally recognized and has a valid address, that the business owner‘s identification and home address are valid, and to prevent fraud. They are also conducted to ensure that your business is not currently filing for bankruptcy or has a pending County Court Judgment (CCJ). Credit checks will let processing companies know that you are not involved in any money laundering scheme or associated with a terrorist group so that they can approve your merchant account. Merchant accounts for bad credit businesses receive these checks before approvals not because it determines their credit scores but because they are needed to ensure that the information being provided is correct and valid.

Need A Merchant Account Quick?


eMerchant Authority prides itself in being a leader when it comes to the provision of merchant account solutions. We provide merchant account services for both low and high-risk businesses.
Our services are secure and reliable.

Besides, we understand just how financially difficult it is to become a business owner. This is why when you partner with us you also enjoy transparent pricing with no long-term contracts or hidden fees.
Whether you’re a startup or an established business, you can count on us to provide you with a perfect merchant service solution with the latest hardware and software tools such as Clover systems that are perfect for your retail payment needs.

And because customer satisfaction is what we aim for, we offer ongoing support to all our customers. Our 24/7 customer support team is always on call to answer your questions and attend to your needs.
Still interested?

Here are other additional benefits that you receive when you apply for an internet merchant account with eMerchant Authority.

Merchant Processing

Merchant Account Experts

20+ Proven Bank Relationships
Medium/High-Risk Accounts
Fast Merchant Account Approval
E-Commerce & Retail Options
B2B Vendors Supported

Multiple Payment Processing

Multiple Payment Solutions

Multiple E-Commerce Gateways
Chargeback Prevention
ACH, E-Check, Credit Cards
B2B Level 2/3 Data Discounts
3D Secure Frictionless Checkout
Mobile Payments
EMV Readers

Merchant Processing Technology

Intuitive Technology & Support

Gateway Recurring Billing
E-Commerce Cart Plugins
International Merchant Accounts
Dedicated Account Managers