If you want to grow your business, you should start accepting credit cards from your customers. For this, you should obtain a merchant account. If you’ve decided to turn to a merchant processor, the latter will require a fee for accepting credit card transactions and will connect transactions with your business checking account.
Criteria for approving your merchant account vary from a processor to processor. However, the processor will check your credit and decide whether to refuse you or not. Having excellent credit will open up many doors for you, but if you have a bad credit score, you won’t have many merchant account options. Bad business credit can create headaches for you.
So what’s your situation and how you can get a merchant account with bad credit without major difficulties?
- Structure of Your Business
If you’re applying for a merchant account as a Limited Liability Company or a C-corporation with an employer identification number, your business credit and not your personal credit may be pulled. You’d better contact the Internal Revenue Service for an employer identification number because you may be required to provide it for credit card processing.
- Your Credit Can Determine the Discount Rate You Must Pay
If you have bad credit, you may be required to pay a higher discount rate. The discount rate isn’t the only thing to take into account. Different merchant account processors may offer different equipment, application and voice verification fees. Compare your options and see what is the best one for you.
- Consider Your Bank
Find out whether your bank offers merchant accounts. Your bad credit may not create problems for you if you have other positive accounts with your bank. If you open a merchant account with the same bank associated with your checking account, the startup fees and costs concerning your merchant account may not be higher.
- Reputable Processor Like EMB
Consider turning to emerchantbroker.com. EMB is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. Bad credit and bankruptcy aren’t a problem for emerchantbroker.com. EMB offers exceptional merchant account processing options to merchants of any type and size. EMB is rated A by Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016. With EMB, you can get a low-cost and reliable bad credit merchant account for your business.
- If You Have a Bankruptcy
In case you have a bankruptcy, you won’t find many payment processors willing to get you a merchant account. You should do some research and find a merchant account processor that will approve you for payment processing. Be aware your account may be approved at a higher discount rate.
- Type of Industry You’re in
If you’re involved in a high risk industry, your credit report is going to be examined more attentively as compared to those operating in a low-risk one. Be aware high-risk businesses will be required to pay higher fees.
- Turning to a Payment Processor Overseas
Merchants with bad credit can also consider turning to a merchant account provider overseas. As a rule, you won’t be required to provide a credit report, but you will pay higher startup fees and discount rates.
Bad credit doesn’t mean the end of the world. Take the time to research all the available options and choose the right one for your business wants and needs.