How to Get a Merchant Account with Bad Credit
A merchant account online is now the lifeblood of any business that used to rely on face-to-face interactions to conduct transactions. Your online store must obtain a merchant account in order to stay ahead of the competition during the coronavirus pandemic when a very large percentage of your customers will be inside trying to choose among various online options.
This is why it can feel discouraging to worry about obtaining a merchant account online with bad credit. If you’re wondering how to get a merchant account with bad credit, it’s important to know how bad credit affects your merchant account online and how to improve your condition to give yourself the best chance of being approved for an account and getting in good standing with a merchant account provider.
Knowing your Credit History
If you’re wondering how to get a merchant account with bad credit, you need to know why bad credit matters in the first place.
Depending upon which merchant account provider you use, bad credit (or especially a bankruptcy within the last 10 years) can negatively affect your chances of getting a merchant account online. With some merchant account providers, it can also change your discount rate for the worse. This is the amount that you have to pay per transaction.
Thankfully, there are a couple of things you can do to make up for your financial situation and decrease your discount rate. If you want to know how to get a merchant account with bad credit and also how to get one more cheaply, read on.
2 Tips on Getting a Merchant Account
- Commit to a higher volume: If your company can commit to a higher processing volume, you may be able to get a significantly lower rate. Bad credit may make it necessary to shop around more and choose your merchant account provider more carefully, but the right tactics can help you decrease your rates.
- Improve your credit score: There are many things anyone can do to improve their credit score. Paying off or consolidating debts can make an enormous difference. You can talk to your bank about what you can do to improve your credit score, and there are countless resources online offering advice.
- Select the right merchant account provider: Find a merchant account provider that specializes in getting the best rates for all merchants, including merchants with bad credit.
The Takeaway
If you’re wondering how to get a merchant account with bad credit, you’re asking the right questions about how to improve your business during the coronavirus pandemic. Bad credit or a recent bankruptcy can negatively affect your merchant account online, but there are many things you can do to improve the situation.
Negotiation is more important for you as a vendor with bad credit. It can make the difference in your discount rate and help you narrow down your options in terms of which merchant account online you sign up with. Contact charge.com at (888) 924-2743 to learn your options and find the online payment processing method that works for you.