Introduction –
There are many businessmen or businesses who have trouble securing a merchant account, due to their credit history. Perhaps, you should consider choosing for a bad credit merchant account or also, known as no credit check merchant account. If a merchant account provider thinks that your business is at high-risk due to the not-so-good credit score, then they may charge extra processing fees or straightway deny you the access towards the payment processing. Luckily, retrieving merchant account without a stellar credit report is not impossible. Besides all of that, poor credit makes it pretty challenging to get a merchant account. Now, lets look at ways to get merchant accounts with bad credit. Getting a merchant account with a bad credit needs several steps. Though, most of the process will work in the same way as applying for a merchant account with a good credit. Besides all of that, the standard process for getting a merchant account process is as follows –
Getting a Merchant Account- Standard Method –
The first and the foremost thing, which you need to do is select a business structure for your new enterprise/business. Next, you have to apply for the needed business license. Also, you have to open a traditional business bank account. Next, select the payment methods that you will want to accept. Also, you have to develop and advertise your terms of service and refund policies. Make sure that all PCI compliance regulations are met. Then, collect the documents stating your business age, processing volume, size. Then, apply for a merchant account online. Prepare the underwriting process by collecting a 6 months of bank statements and processing statements. Prior to committing to a supplier, assess the processing fees to make sure that you are getting the affordable rates available for your business. For bad credit merchant accounts, additional fiscal details may be required in underwriting, like personal statement of business, listing your business liabilities and assets. Moreover, the document assists the outside parties to better understand the firms present fiscal position.
No Credit Check Merchant Account and Needing the Services –
A bad credit merchant account allows businesses to work on the credit card payments, no matter what their credit history may be. Whenever any business takes payments, the transaction funds are held in their merchant account, unless the settlement at which they are released into the merchant’s business bank account. Without a merchant business bank account, you cannot accept debit or credit card payments for the goods and services. If your business has not worked for a merchant account, then you may be wondering if the payment processor considers you a high-risk merchant. So, begin by checking your credit scores and know more.