Bad Credit Merchant Account & Payment Processing
A bad credit merchant account is used when your personal credit does not fall within the underwriting guidelines set by the financial institution providing the account. Believe it or not, your “personal” credit score is one of the most important factors in the approval process, simply because underwriting for a merchant account does not rely on D&B business credit. It is not impossible to obtain an account with a history of bad credit, but you may pay more in service fees compared to someone with a stronger credit profile, or the processing bank may need to establish a “reserve” to offset the risk of taking a loss on your account.
Payment Processing for Businesses with Poor Credit
You run into problems with bad credit if you are behind on payments to your credit accounts, you have defaulted on loans, you or your business has declared bankruptcy, or you have or had in the past judgments and liens in place against the business or yourself personally. All of these factors can decrease your credit rating. You may not have to go after a bad credit merchant account with one or two bad marks on your credit report, but it depends on the specific bank or financial institution that you’re using.
How to Obtain a Merchant Account if you Have Bad Credit
Cosigning and other options exist in order to open such an account. However, this does require asking another person to shoulder the risk, should you have an issue with the merchant account down the road (excessive chargebacks, unpaid fees, and more).
Another option is to apply as a bad credit merchant with a smaller monthly volume, which represents less overall risk to the merchant account provider, and then over time you can grow the account limits.
The high-risk merchant account category is a category that includes businesses with a bad credit history. You don’t need to worry about standing out from other businesses simply due to using a high-risk merchant account, as these types of merchant accounts are prevalent among several specific industries and your customers will never know that you have financial troubles – or the approval conditions between you and the financial institution.
Such an account may not be your first choice, but if you’re trying to recover from financial problems, it could be a lifesaver. The service fees and terms may not be as good as a typical merchant account, but the bad credit merchant providers are willing to take a risk on your business that other processors may not touch at all.
Get Better Credit Card Processing Rates For Your Bad Credit Merchant Account
Once you have established a history with the processing bank and solidified your finances, overcoming your difficult financial status you may be able to apply for an account with better terms elsewhere; however, ask the bank that initially approved you if they can review and improve the merchant account’s terms first. Because the bank was able to get you approved in the first place, it’s only fair turn to allow them an opportunity to keep your business after they stuck their neck out for you when no one else would.
Talk to the merchant account provider about your credit history before you apply in order to avoid being denied. Some merchant account providers will not work with a high-risk or a bad credit merchant, and you don’t want to waste your time simply to end up with no merchant account at all. Also, each time that you apply for a merchant account, an inquiry is lodged against your personal credit, which further reduces your credit score! The companies may have a specific high-risk department that handles high-risk accounts that you can speak with to determine your eligibility prior to applying for the account, or better yet, speak with an experienced account manager at Durango Merchant Services today!
Durango Merchant Services Specializes in Helping Businesses With Bad Credit Secure Payment Processing Services.
By determining your status as a bad credit merchant, you can join forces with Durango Merchant Services, who specializes in cases such as yours, and thereby tackle the financial dilemma your business is in. Our financial support services can be the support you need as you work toward improving your credit score as well as providing the crucial services your business requires to operate. If you are unable to offer your customers the ability to process credit cards, your business will soon suffer and fail. Durango Merchant Services understands the extreme importance surrounding this issue and works with bad credit merchant accounts on a daily basis, providing reliable services and peace of mind so that your business can keep operating seamlessly. Contact our experts today to discuss your specific situation and start your recovery process.
National and International Options for Bad Credit Merchant Accounts:
Durango Merchant Services works with several gateway processors and suppliers with sponsor banking relationships that provide both US based national and international credit card processing solutions. We can provide merchant accounts for comanies with bad credit under one of the following two options:
Requirements to open a merchant account if you have bad credit in the USA:
- Company entity based in the USA.
- REPRESENTATIVE of the company based in the USA.
- Bank Account is in the USA
Requirements of a European company with bad credit who needs a merchant account:
- Minimum $ 50,000 USD per month in sales
- The company must be based in the EU
Merchant Service Prices and Contract Terms:
If you have poor credit and are looking for a merchant services provider, contact us by email or call us today to discuss setting up a merchant account for your business. We will discuss the following:
Available prices for poor credit payment processing:
- Discount rates that range between 1.95% and 4.95%
- Authorization fees ranging from: $ 0.15 to $0.25
- Monthly installments: rates ranging from $ 5.00 per month to $ 60.00 per month
Other terms of the credit card processing contract:
- Rolling reserve requirements that range from: 0% of the rolling reserve to 10% of the rolling reserve
- Variable contract lengths including availability of month to month
- Free application processing
- Direct financing with regular deposits (either daily or weekly depending on international vs. onshore)
Additional benefits of payment processing for businesses with bad credit:
If you get a poor credit merchant account with Durango Merchant Services, then you will also be eligible for other benefits that we offer, we can set you up with electronic commerce and recurring billing via our online portal. Businesses can receive the following additional benefits:
- Competitive rates
- Acceptance of multiple currencies and deposits
- Compatibility with major gateways and shopping carts
- Accept Visa / MasterCard / American Express at your store
- Integration assistance with more than 100 shopping carts
- Chargeback prevention tools and advice
- eCheck processing
- Our gateway comes with industry leading fraud detection and prevention tools
We provide poor credit payment processing accounts for the following:
- Startups and existing businesses – we help all types of businesses
- If you have been Previously rejected or discarded by another processor, we can help you get back on track
- High ticket merchants and merchants with bad credit
- Minimum processing: $5,000 minimum for national accounts, $50,000 for international accounts
Durango Merchant Services is here to help secure your Bad Credit Merchant Account
Our dedicated team has negotiated on behalf of more than 35,000 clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of merchant account for businesses with bad credit.
We know that there aren’t always easy answers. But remember, there is almost always a way forward and if you can make it through the first 3 years with a good track record, life will become much easier and your business will be better for it.