Can a Business Get an Internet Merchant Account with Bad Credit?
Internet merchant accounts allow businesses to process online transactions from their customers by credit card. Businesses that are unable to offer this service run the risk of looking unprofessional and losing sales by failing to offer customers the payment options they need. When the right merchant account provider is selected, an internet merchant account will also come with safety measures, hardware systems, and other items that will benefit the business.
Although these services are essential for any business to succeed online, many businesses run into roadblocks when trying to get them. A relationship with an internet merchant account provider can be difficult to establish if a business owner has bad credit or a shaky financial history.
So the question is this: how can a business obtain a merchant account with bad credit? Knowing how a merchant account provider calculates a potential client’s risk can help those clients know beforehand what to expect and how to potentially mitigate that risk. Not all merchant account providers offer merchant accounts to owners with bad credit, so it pays to shop around and find one that offers the best rates to all merchants, regardless of their credit history.
The Effect of Bad Credit on Merchant Account Eligibility
If the wrong merchant account provider is chosen, then bad credit may make a merchant account more difficult to obtain or lead to increased rates. large and small businesses need the services of an internet merchant account during the coronavirus lockdown more than ever before. Financial experts agree that even after the lockdown has lifted, customers will expect eCommerce payment methods, including mobile-optimized payment services, security measures, and software for online stores.
What can Businesses do to Improve their Eligibility?
Bad credit or a bankruptcy within the last ten years can impact a business’s eligibility to be approved for an internet merchant account. Consolidating debts can make a merchant account easier to obtain. The best thing a merchant with bad credit can do is to work with a merchant account provider that routinely deals with high-risk clients, including those with bad credit and businesses in high-risk industries like gambling, timeshares, and pharmaceuticals.
The Takeaway
Merchant accounts are more difficult to obtain with bad credit. Payment processors can be wary of processing transactions in high-risk industries such as gambling. These industries have a high chance of chargebacks and may make exceptions to their services, particularly in cases of business owners with bad credit scores.
Merchant account providers often have services available for those with bad credit, so it’s worthwhile to consult one and get a quote. Visit Charge.com or call (888) 924-2743 to find options for merchant accounts for businesses or business owners with bad credit.
