Get a No Credit Check Merchant Account

Feb 28, 2018

The average American’s credit score is 695, and that rating is just considered fair. With this type of score, you likely can get a mortgage or a car loan pretty easily. However, if you can boost your credit score, you can open yourself to much greater opportunities, such as different types of financing and lower interest rates. Those with scores below 650 have poor scores and those under 600 are considered bad. If you find yourself in either of these situation, hold on, you can expect a bumpy ride.

Poor and bad credit can make it impossible to obtain a merchant account from a traditional bank. Banks don’t want to take a risk merchants that have credit problems.

Since a merchant account, which allows a business to safely and efficiently accept and process credit and debit card payments, can make or break a business, you need to be creative to get what you need. If you want to get your business off the ground or you are trying to operate online and you have terrible, work to minimize your risk to lenders. Loosen the burden by following these tips to getting a no credit check merchant account.

Understand Your Issues and Tackle Them

It is important to remember that if your issues have been with personal credit as opposed to business credit, you are likely to get approved for a merchant account. Factors that can impact the final decision include: the frequency of defaults, how many you had against you, when they occurred, how much you owe, and whether debts have been settled.

Start Building a Reserve

One way around your credit score is to tell a processor you will collect a “reserve” of funds to cover any potential defaults. Many providers like the idea of having merchants having these financial safety nets. Unfortunately, you do have to have this kind of money for this to be approved by a processor. If you know your credit has problems, begin saving now.

Offer to Accept an ACH Delay

An ACH delay postpones the deposit of processing funds to your bank account. In this situation, a process holds on to your funds for a few extra days as a promise that all of your transactions are valid.

Find a High-Risk Merchant Account Provider

When you have bad credit, you are basically treated like a high-risk merchant. Therefore, it only makes sense to find a high-risk merchant account provider. Since your business carries more risk, you are likely to a slightly higher percentage rate and additional restrictions, such as monthly processing volume caps, as opposed to low-risk credit card processors, but you will have the ability to accept and process credit cards if you get approved for a no credit check merchant account.

Bad or poor credit isn’t a problem for merchant account providers that specialize in merchant account services for high-risk businesses. Since they are familiar with the challenges and obstacles that come with high-risk businesses, they are more likely to help you get approved. There are plenty of high-risk providers and processors out there, just make sure you do your research and check out customer complaints and reviews before you move forward with a contract.

Fix Your Credit

While trying to obtain a merchant account, you should do whatever you can to improve your credit score. You can boost your credit score if you pay your bills on time. On average, payment history accounts for about one-third of your credit score. Every time you miss a payment, you are lowering your score. How late you paid and how often you miss payments also are factors that lower your score.

If you can, pay down your debt. Carrying too many high-interest balances negatively impact your credit. Also, getting rid of these balances will save you lots of money in terms of interest payments.

Finally, double check your credit reports to ensure there are no mistakes. Five percent of consumers had errors on one of their three major credit reports that could lead to them paying more for auto loans and insurance, according to a U.S. credit reporting industry study by the Federal Trade Commission. It is each consumer’s responsibility to ensure all information on their reports are accurate and complete. Even one mistake could mean the difference between a poor and a fair credit score.

In Conclusion

When you have lousy credit, getting a merchant account can seem impossible. It doesn’t have to be if you prepare and take steps to minimize your risk.

When you are ready to apply for a merchant account, turn to eMerchantBroker.com (EMB), which specializes in high-risk processing services, including merchants with bad credit. EMB works with businesses that have poor credit histories, prior bankruptcies, and tax liens.

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 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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