When a business owner wants to process credit cards through his business, he typically opens a merchant account. This process usually involves completing an application and providing the merchant account provider with information it needs to make a decision. If you have bad credit, you may still get approved for a merchant account, but you may have to invest a little more time into finding the right provider. You may do well to research and apply with a merchant account provider that advertises its willingness to work with people who have bad credit. Once you’ve found at least a few providers that offer bad credit merchant accounts, you may choose the company that meets your needs in terms of reputation, rates, service fees, and terms.
If you have bad credit, you may worry that you’ll have a difficult time getting approved for a merchant account. In reality, you may have to look a little harder to find providers that accept individuals with bad credit and compare them before putting in an application. In most cases, having bad credit won’t stop you from obtaining a merchant account. If you are in the middle of a bankruptcy case, however, you may have a difficult time getting approved for a merchant account. In most cases, merchant account providers will only want to work with you once your debts have been discharged.
To obtain a merchant account with bad credit, you may start by compiling a list of companies that specify their willingness to work with business owners with bad credit. Applying with one of these companies usually means you’ll have a better chance of getting an approval. Generally, it’s best to avoid banks when you want to secure a merchant account with bad credit, as they are usually unwilling to approve individuals who do not have excellent credit histories. Once you’ve compiled a list of companies that provide bad credit merchant accounts, you may compare them based on reputation and cross those with bad reputations off your list.
When you’re ready to choose a merchant account provider, you may do well to compare those that remain on your list based on fees and charges. Each merchant account provider may charge different processing fees and varying amounts for account setup, customer refunds, and equipment. You’ll typically want to choose the merchant account provider that offers terms with which you are most comfortable, at affordable rates. You may feel pressured into paying high fees because you are applying for a merchant account with bad credit, but doing so may be a mistake. By taking the time to look for the right provider, you may find one that is willing to offer rates similar to those offered to individuals with good credit.
As you attempt to obtain a merchant account with bad credit, you may do well to keep in mind that each provider will have its own unique criteria for approval. If you are rejected by a couple of providers, this doesn’t mean they will all reject you. In most cases, an individual with bad credit will eventually find a company that is willing to offer him a merchant account
