Merchant Accounts For Bad Credit History Business Owners

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.