Obtaining a Merchant Account with Bad Credit

If you want to accept credit cards from your customers, you’ll be required to have a merchant account in place. Different merchant processors practice different criteria for approving merchant account applications. Your credit will be checked at the time you apply for a merchant account, but don’t fret as merchant processors are usually lenient with customers with bad credit.

Here’s what you need to consider when applying for a merchant account processor:

1.    Business Structure

It depends upon the type of business you’re setting up as to whether your bad credit will play any role in obtaining the high volume merchant accounts from your processor. A limited company will not reflect on the personal account of the business owner, whereas a company which has not been registered, will.

2.    Higher Fees

It is possible to obtain global merchant processing account even if you have a bad credit, but be prepared to pay higher cost for the fees charged. If your business ventures isn’t a limited company and you’re looking for online credit card processing services, it is advisable you prepare your financial credit score well in advance. Doing this will not only reduce the fees charged, but will also save money for your business.

3.    Bankrupt

Your bankruptcy details will reflect on your personal score for nearly ten years.  It will restrict many credit card processors from accepting your application, but there are merchant account providers who will willingly take your high risk business.