Getting a Merchant Account with Bad Credit

A few decades back, getting access to credit was quite a challenge. Military veterans could get priority for loans, but most people had a hard time with any bank assistance or financing. Things have changed now, and may issuers offer you credit cards in the mail. You can get a card without even asking for one.

Unfortunately, when you’re at the receiving end of a credit card campaign, you may be unclear on the cost of defaulting. You know that you can buy things now and pay for them later, but you have no idea how fast interest rates pile up. Before you know it, you’re deep in debt and stuck with bad credit.

Low credit scores don’t have to ruin your life

Once you’re tainted with bad debt, it can be hard to earn a living. Your pay checks may be tagged with automatic deductions, and your business might suffer. Many banks, payment processors, and other service providers may refuse to work with you. You can’t even buy a car or phone, because your credit history bars you from payment plans.

As a business, if you can’t open a merchant account then you can’t accept card payments from customers, and this directly affects your ability to make money. Bankruptcy has a similar effect, because even if you’ve bounced back, your past bankruptcy will influence the bank’s decision to loan you money or give you a credit card.

Find a payment processor that accepts bad credit

Fortunately, there are merchant processors that will accept your business regardless of your financial past. Even if you have a low credit score or have hit rock bottom in the past, they will still support you. These payment processors have generous client policies, so they will work with businesses in ‘high risk’ sectors as well.

Another advantage of a customer-facing merchant processor is their low fees. Since they can see that your credit is bad and your finances are compromised, they help you build yourself up. They offer free applications, minimal transaction rates, and lots of free features bundled with their products. This way, you save money, which increases your profit margin.

Minimal entry requirements don’t affect service

You may have heard people say ‘you get what you pay for.’ This might make you concerned about signing up with a cheap merchant processor. To make sure your low cost processor is a good bet, check who else is using their service. If verified companies are using them then you know your card transactions are safe with them.

Apart from client testimonials, check their industry credentials. You can rely on a payment processor that has received multiple awards in the finance sector. You can also look into their compliance rates. All top payment processors should follow PCI QIR regulations and other industry standards for service and security.

For more information on how credit history can affect getting a merchant account, or to sign up for a merchant account, please call (888) 924-2743 or go to

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