How to get a Merchant Account with Bad Credit
If you have a small business that wants to be able to accept credit cards from its customers, you may be wondering how to get a merchant account even if you have bad credit. Since many merchant account providers check your credit when you apply for an online merchant account, you may feel like you don’t have options, but you do. Here are a few tips on how to get a merchant account even if you have bad credit.
Know your discount rate
If you have a low credit score, and if you don’t select the right merchant account provider, then it is possible that you will have to pay a larger fee when you process your customers’ credit cards. The merchant pays the “discount rate,” which is calculated as a percentage of the transaction, whenever a customer pays the merchant using a credit card. As the holder of a merchant account, you’ll always want to lower this discount rate so that you make more money per transaction. This can be more difficult if you have bad credit.
If you’re wondering how to get a merchant account with bad credit, you should also be wondering how to lower the discount rate and other fees as much as possible before you sign on with a specific online merchant account provider.
If you can find a merchant account provider that will offer you low fees despite having bad credit, you should consider this as a huge selling point when you’re choosing the online merchant account that’s right for you.
Other factors
Other factors can change your method of how to get a merchant account with bad credit. For instance, if you have filed for bankruptcy in the last ten years, this may make your relationship with your online merchant account more difficult and could affect your fees. If this situation applies to you, then look for a merchant account provider that will approve you with a good discount rate even though you have a bankruptcy on your record.
You may also own a business in a high-risk industry, which can make getting an online merchant account more difficult or more expensive. For example, if your business involves gambling or pharmaceuticals, part of your search process for how to get a merchant account with bad credit should include your chosen online merchant account provider’s stance towards these industries and how it may affect your rates.
The Takeaway
If you’re wondering how to get a merchant account with bad credit, you need to ask yourself which online merchant account provider will offer you the lowest fees. By knowing what they’re looking for from you, you will know what to expect when you try to make an account with them.
For more information on how to get a merchant account if you have bad credit, or to sign up for a merchant account now regardless of your credit history, you can go to Charge.com or call (888) 924-2743.