How to Get a High Risk Bad Credit Merchant Account

Oct 30, 2017

It’s never smooth sailing for small upcoming business. The challenges that come with running your new business may go out of hand depending on different factors. So if you’ve suffered bad credit or bankruptcy from a previous business enterprise, then you’re definitely a high risk retailer who will need a bad credit merchant account.

What’s a bad credit merchant account?

These are merchant accounts issued to retailers with bad credit, in most cases, a poor FICO score. Underwriting banks will always check on your credit score, and with a bad score, chances are; you might not get approved for normal merchant accounts.

Therefore if you want to begin accepting credit cards, your only option is seeking a bad credit merchant account from a high risk processor. However, high risk processing normally has slightly higher processing rates compared to low risk processing, and often come with additional limits e.g. limited processing volume, funding delay etc. But most of these limitations are lifted after some months of successful processing.

Who Offers High risk Bad credit Merchant Accounts?

With poor credit ratings, you obviously won’t be underwritten by traditional banks that sponsor low risk credit card processors due to your high risk nature. On the other hand, high risk merchant service providers are experts in dealing with high risk credit card processing.

They usually have slightly higher processing rates, and may add a few restrictions to the account, to ensure the processor doesn’t suffer significant losses in case things go south in your account. In general, these protections also favor merchants, as this level of comfort enables you to process with slightly lower rolling reserves or higher chargeback limits. So never waste your time applying for a bad credit merchant account with a low risk merchant service provider.

The easy way to go about it is to apply with a high risk credit card processor. But first, it’s good to check your credit score versus your future processor’s score line before submitting an application. This is because it’s the first thing all high risk merchant service providers will check before approving you.

Don’t lose hope because of bad credit. Your business can still get back on its feet; thanks to high risk merchant service providers who are now more than willing to help high risk retailers.

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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