Credit scores have dictated how business is done in the United States for decades. These days, a bad credit score can completely destroy potential ventures. Business owners with bad credit are prevented from opening merchant accounts, leaving them completely helpless. We believe that every entrepreneur should have access to the tools they need to build a business. And we believe in our high risk merchant accounts for business with bad credit. Bad or no credit shouldn’t stop any entrepreneur.
With that in mind, we offer high risk merchant accounts with business owners with bad credit or no credit. Because we’re committed to the solution, not the problem. Learn more about bad credit and how it afects your merchant account here. Knowledge is power!
The business owner and the business itself have separate credit scores. Your merchant account application will factor in your business credit score, and not your personal credit score. Having no credit history can create just as many difficulties when applying for a merchant account as having bad credit. Though bad credit takes much loner to fix.
If your business has bad or no credit, it will likely be considered high risk. Though that’s not the only reason a business is considered high risk. the industry you serve also plays a role in your classification. Being a high risk business that has a bank account with bad credit can make it hard to find reliable credit card payment processing methods. Especially first-time business owners, getting a business up and running with bad credit will make it difficult.
When you have a bank account with bad credit or has a history of bankruptcy, you become a high risk account. Banks will not back you or your business and it will be difficult to support your business. However, a high risk merchant account provider can give you the security you need in order to grow your business. Speaking with the right payment processors can really help you increase your reputation and help lower your risk.
Business who seek out high risk merchant accounts are:
Applying to a high risk merchant account provider you must be sure to have all the proper documentation ready and identify the terms and fees that will be coming from the provider. It is important to keep in mind that fees for a credit merchant account typically are higher because they are backing high risk businesses. The fees can range from 1-5% depending on the provider.
When businesses go through the process of opening a business bank account, a credit check is normally not required. What is done instead is a ChexSystem report. A ChexSystem report collects information on any past checking or savings accounts to see if you had any problems. Issues that can be found with this report include bounced checks, a bank account with bad credit, overdrafts fees and overdrawing your accounts, a bank previously closing your account, and unpaid credit balances or fees.
A merchant account just looks for you to have at least a 500 credit score. The lower the score the higher the fees may be. Higher risk business will be required to be charged with higher fees and to keep reserve funds in the account. Chargebacks can be as deadly as bad credit. All of these things will factor into the requirements or restrictions a high risk merchant account provider will include in the contract. There is no need to worry because even a bad credit business account can be approved.
After being approved by the high risk merchant account provider, you are able to feel confident in running your business. They are there to make sure your business remains healthy and can grow. Being able to slowly repair credit scores with the increase in business will provide business owners peace of mind.
High risk merchant processors allow for many types of payment methods available to customers across the world. Having access to a global market is something high risk merchant processors can provide to business owners, new or established. The chargeback protection that comes with these processors as well can put business accounts in a better condition rather than it terminating the account.
When you have the security of a high risk merchant provider, you are able to focus on your products and customer service. This security will also be able to protect business owners and customers from potential fraudulent transactions or scams. Many high risk merchant account providers have unique technology that is able to detect fraudulent purchases and stealing custom details during transactions.