If you want to accept credit and debit cards from your customers, you will need a merchant account. Merchant processors charge a fee for you to process debit and credit cards, and connect transactions with your business checking account. Each merchant account processor has different standards for approving your merchant account. Your credit is usually checked when a merchant applies for an account. Merchant account processors are typically lenient with customers with bad credit, though it is wise to read the fine print, as some charge higher fees than others will. You have options to take under consideration when applying for a merchant processor.
First off, having bad credit should not limit anyone from having a business. While bad credit possibly shows bad decisions, be sure to explain your situation. Overdue hospital bills can be viewed differently than overdue credit card bills. It should not reflect on your business, and in some cases, it will not. If you are structured as a Limited Liability Company or a C-corporation with an employer identification number, merchant account processors may pull the business credit and not your personal credit. This is fantastic, however, if you are a new business without any credit, you can be placed into the “bad credit” category. There are many people who have bad credit, and it should not stop them from obtaining a merchant account. Bankruptcies are a little tougher, as they can stay on your record for much longer than an overdue credit card bill. However, there are merchant account providers who cater to those who have previously filed for bankruptcy. Some merchant account processors accept businesses with a FICO score as low as 500, current bankruptcies, judgments, and liens.
Your personal decisions should not affect your business, or your desire to start a business. These businesses need someone dedicated to them, and to their owner. These businesses need a company that specializes in “high-risk” situations. With careful consideration, you are sure to find the company that is the right fit to host your merchant account.
Get your Merchant Processing account today!