Bad Credit? How to Obtain a Merchant Account with Poor Credit With Instant Approval

Sep 29, 2017

To accept credit and debit cards from your customers, you will need to first secure a merchant account. Easier said than done? One of the biggest reasons merchants struggle to secure an account is because of bad credit. If your struggling with bad credit from a previous business venture – or other circumstances – you will be glad to hear that there are still options available to you.

Each merchant processor will have their own criteria when it comes to offering you a merchant account. For example, most processors will check your credit when you apply. Alternative processors – like – are much more forgiving when it comes to bad credit. With EMB, businesses with bad credit or no credit can easily secure the merchant account they need.

Before choosing a processor and submitting your bad credit merchant account application, there are a few things you must consider:

Business Structure

How a merchant account processor pulls your credit will depend on how your business is structured (e.g. Limited Liability Company or a C-corporation); that is, whether they pull your personal credit or business credit. If your business is an LLC, for example, the processor may pull your business credit, not your personal. Before you apply, make sure you contact the Internal Revenue Service and request an employer identification number – a requirement for credit card processing.

Credit and Discount Rate

Your credit typically determines the discount rate you pay to process your customers credit cards. With each swipe of a card at your terminal, a percentage (discount rate) is paid to the merchant. The lower the rate, the more money your business keeps from each transaction. Unfortunately, bad credit will influence the discount rate you pay; anything below 619 is considered poor credit and will involve a higher discount rate. Unless, you work with a processor like EMB that specializes in working with merchants struggling with bad credit.


Most merchant processors will deny your account application when they see that you have bankruptcy listed on your credit report. To make matters worse, bankruptcies will remain on your credit report for ten years. Again, your business can still secure the processing it needs with a high-risk processor like EMB. In fact, you can easily secure a bad credit merchant account with instant approval.

If you are overwhelmed with bad credit, never fear. Simply take a little extra time to research all your bad credit merchant account options, consider the fees involved and choose the one that best fits your business’ unique needs and situation.

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

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat