A Bad Credit Merchant Account is Similar to a New Credit Card

Feb 13, 2015

There are very few individuals and companies that kept struggling to keep afloat during the past recession that do not have more than one hiccup on their credit reports. Some people maxed out their credit cards and were slow in making payments. They did make payments – but not fast enough or enough money to cover the minimum due.  Some were forced into bankruptcy protection while others suffered tax liens. Any of these can market you as a high risk because of bad credit. If you want to process credit and debit cards in your business, you need a bad credit merchant account.

So what is a merchant account? In all reality, it is like a credit card with a line of credit. The merchant fills out an application and states that he will accept credit cards for $7,500 in sales per month. He wants a $7,500 line of credit because the processor will be settling and depositing money into the merchant’s checking account before the processor gets paid for the transaction. So the processor is trusting that the sale is good and that payment from the card issuer will be forthcoming.

There are several things to know about a bad credit merchant account. First, you need to deal with a high risk specialist. Conservative processors and traditional banks are looking at your credit score and your past failures. A high risk specialist like EMerchantBroker.com does not place as much weight on your credit score. EMB looks at your future. Their approval rate is over 95%.

Much like a credit card, you want to be careful with your new bad credit merchant account. If you applied for $7,500 in billing each month and when you begin to accept cards you run $7,500 in receipts through in two days you are not raising a red flag, you are waving a red blanket in front of a bull. This is a sign that you either did not know what you were doing when you opened your account or something fishy is going on. Payment processors are like high school principals. They have seen it all and heard it all. The odds of trying to beat the system are stacked against you so do not even try.

The good news is that you can use your bad credit merchant account to rebuild your credit and get your life back in order. Once your processor sees that you are indeed a responsible business person there may be some discounts or perks available when you renew your service.

EMB does not charge an application fee and many times bad credit merchant accounts can be approved in as little as 24 hours. For you, there is no risk in applying.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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