Credit Card Processing For Merchants With Bad Credit

Jun 14, 2017

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?

  1. 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.

  1. 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.

  1. 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.

  1. Reputable Processor Like EMB

Consider turning to 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 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.

  1. 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.

  1. 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.

  1. 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.


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