Bad Credit Can Prevent Businesses from Getting Good Merchant Processing

Everyone knows that having bad credit can have a profound effect on a person’s life. They might not be able to purchase the car they want, for example, or replace the appliances they need. They might not be able to update their electronics, their furniture, or their wardrobe. They may even be denied a job due to their bad credit history. The same is basically true for any business that has imperfections in its credit history. A lot of vendors will not extend a line of credit to it, and it may have a tough time buying supplies or covering maintenance costs. The company might also struggle to find customers, because its bad credit may render it ineligible for credit card services. Many people prefer to use their cards for purchases these days – because it is easier to monitor them for fraud or theft – and a business that cannot accept credit cards is doomed to see potential clients walk on by.

The business’s bad credit affects its methods of payment collection, because credit card processing companies are shy about opening merchant accounts for credit card processing for enterprises with less-than-stellar standing. Instead, a credit card processor will usually deny such a business an account. If the processor does decide to give the business an account, it will not be an individual one. The processor will make the business use the processor’s own merchant account for collecting funds. Since it will be on the account as a third party, the business will not be able to remove any money from it. The company will have to wait for the processor to get around to distributing the funds, and there may be discrepancies between the funds collected and what the company actually winds up receiving. These are caused by the processor extracting exorbitant transaction and service fees, (as well as some hidden charges), while the money sat idle in the account. The business is left with far fewer funds to work with, and a hard choice to make. It could forgo getting an online merchant account and lose customers, or get the account and watch its funds get siphoned off by excessive fees.

Neither of those options sounds appealing to business owners hoping their ventures will grow, and fortunately, there is an alternative. Charge.com is ready to help companies trying to escape their bad credit histories by providing free applications for high risk merchant accounts. The applications are easy to fill out, and a quick response is usual. Applicants will often hear back about the status of their request in just a few days – not a few weeks – and once they have gained approval, they can begin processing payments in real-time through their accounts within 24-48 hours. Since the accounts are private, businesses do not have to worry about any third-party holds preventing them from withdrawing the funds as they see fit. Charge.com also offers its clients the most affordable rates around. Merchants will never be stung with hidden fees, and can pay credit card processing rates as low as 0.25%, with only $0.15 for each transaction. For businesses with bad credit histories, this is a fairy-tale come true.

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