Is it possible to get Merchant Services With Poor Credit

It is not surprising to see merchants have poor credit and there are several reasons behind this. This happens mostly because they end up using excess amount which will end up in lowering their credit score.  Example: A merchant wanted to start up a company when they need a huge fund or even when the business is on loss just to save the business pull in some extra cash.

Moreover getting merchant account services can be extremely difficult because for a merchant with poor credit history because banks and payment processors won’t risk to provide account for such business owners. Due to the risk factor most of the payments processors won’t even approve such accounts.

There are still various ways to get a merchant account. Here are few tips which might help you:

Applying for a merchant account with your current bank:

You have a huge advantage if you have an existing bank account with positive accounts. You need to ask your bank if they provide merchant account services. If they do then most of the cases they provide a bank account even if you have poor credit score. Also in some cases the bank might offer an account with lower fees and start-up cost if you have positive accounts.

Apply for a high -risk merchant account:

High-risk merchant processors are specially designed so that merchants for whom it’s impossible to get merchant account otherwise can get with an account them. Most merchants who has not been approved by other financial institutions will apply for an account with high-risk merchant account providers. However, if you have a poor credit score be prepared to pay higher fees as well. High risk merchant account is designed in such a way that they have generous customer policies so you will have great chances of approval and no matter if you have a high risk business or poor credit score you will definitely get approval.

Adding a co-applicant when you apply:

This is another great way of getting an approval. All you need to do is get a co-signer who has a good credit history. So when you apply the bank or the payment processor they will consider the credit score of the co-signer and take it as guarantee.

Consider having a rolling reserve account:

When you apply for a high risk merchant account there will be rolling reserve. Rolling reserve is a certain percentage of amount that will be collected by your payment processor or bank which will be considered as a protection shield in case if there is any chargeback. This amount will be held either for certain months or until the life of your business.

Overseas Merchant Account

Overseas merchant account might be the answer. Because most of the overseas merchant account don’t pull your credit score when you open an account. If you consider overseas merchant account there might be certain disadvantages like higher discount rates and processing fees.

iPayTotal is a high risk payment processor and we have been in this industry for quite some time now. If you have low credit score and looking for a merchant account, Call us now we will be happy to help you.