Bad Credit Merchant Account – Apply Now!
Starting a business can be a challenging process, especially when you have a bad credit history. With a bad credit merchant account, you can get your business up and running without worrying about being denied due to your credit score. Apply today, and SecureGlobalPay will have you accepting credit card payments within a few business days!
A high risk merchant account allows you to accept credit and debit card payments while giving you access to the growing digital economy. A bad credit merchant account allows you to process credit card transactions, even with a bad credit score. Additionally, payment processing solutions via an online high risk merchant account can increase sales, attract more customers, and build your business’s credibility.
What is a Bad Credit Merchant Account?
A bad credit merchant account is a high risk credit card processing solution that allows merchants to accept credit or debit card payments even if they have a poor credit history.
This type of merchant account is beneficial for those businesses that have been turned away from traditional banks due to their poor credit scores or those who are just starting and do not have a long credit history. A bad credit merchant account allows businesses to accept customer payments without worrying about their specific credit score.
High risk merchant accounts often have significantly higher processing rates than traditional accounts. Still, they provide a more flexible solution to high risk industries that may not qualify for a traditional merchant account.
In addition, these merchant processors typically offer more features and services than traditional banks, such as fraud protection, customer support, and analytics for online businesses.
7 Reasons Why a Business Needs a High Risk Payment Processing Services
- The previously terminated merchant account (TMF list, also known as MATCH List)
- Unpaid bills
- Confusing business structure
- Too many customer complaints, disputes, or specific inquiries about transactions
- Previous processing history with a high ratio of chargebacks (more than 3%)
- Fraud by customers or business partners
- Tax liens
- Bad personal credit with no credit history or low credit scores
- A previous business venture failed, leaving debts behind
While bad credit merchant accounts may be more expensive, they can be a valuable business resource for bad credit merchants needing to accept credit cards.
Do Merchant Accounts Get Approved Easily with Bad Credit?
Getting a merchant account with bad credit approved and processing payments is not always easy. Banks and other financial institutions often hesitate to issue merchant accounts to those with bad credit.
This is because merchants with bad credit may be more likely to default on payments, making it a risk for the lender.
Companies specializing in providing merchant accounts for bad credit are more willing to take on the risk, though they may charge higher fees or require additional security.
What Credit Score is Needed for a Merchant Account with Nominal Credit?
A merchant account with bad credit typically requires a credit score of at least 620 or higher. Depending on the provider, a higher score may be required to open a merchant account with bad credit. Merchants with prior bankruptcy will have difficulty finding a credit card processing solution.
What are the Requirements for a High Risk Merchants?
Requirements for high risk merchants and specifically, merchant accounts with bad credit must include a good business plan.
Additionally, displaying constant improvement in successfully meeting payment deadlines can help when applying for a merchant account with bad credit. Working with a credit repair business shows good faith.
The business should ideally have a steady cash flow and a reliable source of income. This will help provide the necessary financial documents to prove the business’s creditworthiness.
Things to Prepare (minimum underwriting requirements):
·Business incorporation documents
·Business license documents
·Bank statements
· Payment processor statements
Having a merchant account with bad credit can be challenging, but with the right preparation, it is possible to obtain one.
Benefits of a Bad Credit Merchant Account
Having a bad credit merchant account can be beneficial for businesses in several ways. One of the main benefits is that businesses can access the same services that businesses with good credit can use.
This means that businesses with bad credit can accept payments from customers using credit cards, debit cards, and other forms of payment. This can help businesses increase their sales and attract more customers.
Another benefit of having a bad credit merchant account is that it can help businesses build credibility. By accepting credit card payments, businesses can show that they are reliable and can be trusted. This can help businesses gain customers’ trust and loyalty, leading to increased sales.
How to Get a Bad Credit Merchant Account
Getting a bad credit merchant account is relatively straightforward. The first step is to find a trustworthy payment provider willing to work with you. It is important to research, look at some high risk merchant providers’ reviews, and compare different credit card processing solutions to find one best suited to your needs.
Once you have chosen a provider, you will initially need to go through the application process and underwriting process. Once your application is approved, you can start accepting credit card payments from customers.
2 Tips for Setting Up a Bad Credit Merchant Services
Setting up a bad credit merchant services can be tricky, so here are 2 tips to help you get started.
First, make sure that you are working with a reputable provider. Do your research and compare different providers to make sure that you are getting the best deal.
Second, make sure that you understand the fees associated with your account. High-risk providers typically charge fees such as processing fees, transaction fees, and monthly fees.
6 Things to Help with the Approval of a Bad Credit Merchant Account:
- Have funds in your bank account to show that you are adequately solvent
- The business owner with the best personal credit record and financial standing should apply for the application
- Your website needs to have a clear privacy and refund policy published
- All overdue bills have been paid
- Chargebacks are being actively managed and are under 2%
- A workable customer service process is in place to handle queries and complaints
Can I Get a Merchant Account with Bad Credit?
It is possible to get a merchant account with bad credit; however, it can be a more difficult process than applying with a good credit score.
Generally, underwriters will review your personal credit score when deciding whether to approve your account. If your credit score is below a certain threshold, your high risk application may be denied.
Alternatively, some providers may still approve your account but require additional high risk security and higher fees to offset the increased risk.
If you have bad credit, you may seek out specialized high risk payment processors that work with high-risk merchants like SecureGlobalPay.
How to Improve Your Credit Score to Get a Merchant Account
If you have a bad credit score, you may be wondering how you can improve it. Improving your credit score can be a long and arduous process, but there are a few steps that you can take.
- Check your credit report for any discrepancies or errors. If there are any errors, make sure to have them corrected.
- Make sure that all of your bills are paid on time. This includes both debts and bills that are not related to credit. Late payments can harm your credit score.
- Make sure to keep your credit utilization low. This means that you should not be using more than 30% of your available credit.
- If you have any outstanding debts, try to pay them off as soon as possible, or at least show reliable progress on repayments.
- Make sure to monitor your credit score regularly.
Fees Associated with Bad Credit Merchant Accounts
One of the main drawbacks of having a bad credit merchant account is that it typically comes with higher fees than traditional accounts.
This is because merchant account providers view businesses with bad credit as riskier and charge higher fees to offset the risk.
Some of the fees associated with bad credit merchant accounts include setup fees, processing fees, monthly fees, and annual fees.
·Setup might be charged when you open a new account and can range from $50 to $100.
·Processing fees are charged when customers make a purchase and can range from 2% to 5%.
·Monthly fees often range from $10 to $50.
·Annual fees are charged once a year and can range from $25 to $100.
·Be careful of an early termination fee.
Other aspects to consider when applying for a high-risk merchant account
- Higher transaction fees – Vary by provider and industry, but normally 3% to 10%.
- Capped transaction volume – Volume may be restricted for card payments until you have proven that you are a reliable merchant.
- Longer settlement time – It may often take a week or more for payments to reach your account compared with around 1-3 days for regular merchant accounts.
- Bigger reserve – High risk acquiring banks may insist you to retain 15% or more of the transaction values in your account as a buffer against possible chargebacks and fraud.
- Closer monitoring – Because card processing companies consider the potential for fraud is greater for high-risk accounts, more stringent checks and security measures are applied.
How to Successfully Apply for a Bad Credit Merchant Account
Applying for a bad credit merchant account can be tricky, so here are a few tips to help you apply successfully.
First, ensure you have all the necessary documents and information if your business is considered high risk. This includes your business information, such as your business name and address, as well as your financial information, such as your bank statements, tax returns, and credit reports.
Second, it is important to be upfront about your credit score and any past issues you may have had. This will help ensure that the account provider can make an informed decision about your high risk merchant application and your high risk business in general.
Lastly, make sure that you are prepared to answer any questions that the merchant account provider may ask. Having a clear understanding of your business and your financial situation before applying can help.
Finally, make sure that you are familiar with the terms and conditions associated with the account. This includes understanding the fees associated with the account, the types of payments you accept, and any other rules and regulations.
Merchant Account Bad Credit? Can Anyone Get One?
Having bad credit can make it difficult to obtain a merchant account, as most financial institutions will not want to take the risk of bad credit businesses.
However, some options like SecureGlobalPay are available for businesses with bad credit to get a merchant account bad credit. High-risk credit card processing companies may be willing to work with businesses with bad credit, specializing in helping high-risk businesses.
Where Do I Apply for Bad Credit Merchant Services?
If you want to apply for bad credit merchant services, various options are available, but SecureGlobalPay makes things easy.
You can apply online or call one of our representatives who specializes in services for businesses with bad credit.
Alternatively, you can contact us via email at partners@secureglobalpay.net and ask for a bad credit merchant services representative specializing in your high risk industry.
Before applying, it is important to research the different providers, as fees and terms can vary. With the right provider, bad credit merchant services can help your business take payments securely and conveniently.
Best Practices for Managing Your Bad Credit Merchant Account
Once you have successfully completed a merchant account application for a bad credit merchant account, it is important to follow a few best practices once approved.
First, make sure that you are regularly monitoring your account. This includes keeping track of your transactions and any fees associated with them.
Second, make sure that you are staying up to date on any changes in the industry. This includes changes in regulations, fees, or technologies.
Third, make sure that you are taking steps to protect your account. This includes using strong passwords and encryption when handling customer information. Additionally, make sure that you are regularly scanning devices for viruses and malware to ensure that your account is secure.
Finally, always ensure you are taking steps to improve your credit score. This includes making on-time payments and keeping your credit utilization low.
How to Get the Most out of Your Bad Credit Merchant Account
A bad credit merchant account can benefit some businesses, so it’s important to know how to get the most out of it.
1. Make sure you take advantage of any promotional offers your merchant account provider may have. This includes any discounts or incentives they may offer.
2. Offer customers multiple payment options. This includes accepting credit and debit cards, as well as other forms of payment.
3. Consider offering bonuses and rewards to customers. This can include offering discounts or rewards for repeat customers or offering loyalty programs. Offering rewards and bonuses to customers can help you increase customer loyalty and repeat business.
4. Actively promote your payment processing services to your customers. This includes prominently displaying your payment options on your website or in your store. You can also use email marketing or social media to promote payment options.
Conclusion – SecureGlobalPay
Getting a bad credit merchant account can be a great way for businesses with a problematic credit rating to access the same services as businesses with good credit.
Bad credit merchant accounts can help businesses increase sales, attract customers, and build credibility. It is important to do your research and compare different providers to make sure that you are getting the best deal.
Additionally, it is important to take steps to improve your credit score and follow best practices when managing your bad credit merchant account.
By doing these things, you can get the most out of your bad credit merchant account and be on your way to success.