How to Get a Bad Credit Merchant Account

March 10, 2023 | Merchants | Dustin

Knowing the simple rules for how to get a merchant account with bad credit can ensure that your company can continue functioning on the financial road to success. Apply today for a high-risk merchant account with PayKings. Cut all the red tape involved with getting approved for an account, without worrying about your credit history.

Consumer credit reporting bureau estimates that 30% of Americans have bad or poor credit. Their scores are between 300 and 600. Additionally, they have limited access to lending opportunities or merchant accounts

On the other end of the spectrum, just 22% of people have excellent or super credit with scores between 781 and 850, according to the data. When it comes to finding reliable payment processing for your eCommerce business, a bad credit merchant account is a hurdle you will absolutely have to overcome.

No Credit Check Merchant Account

If you have a poor credit score, you may not want a processor to check it. Nonetheless, if you apply for a merchant account, they’ll review your credit history and financial information. Past bankruptcies, tax liens, and low credit can make it seem impossible to have a business back on the right track and approved for a bad credit merchant account.

Financial institutions and banks don’t want to have a risk on a company that has credit. If companies wish to move into eCommerce and also accept credit card payments, they will need to find into a high risk processor, like PayKings. We specialize in approving business owners that do not have good credit who need a merchant account.

For merchants, applying for a bad credit merchant account is quick and easy with the PayKings application. Specializing in high risk merchant accounts, our payment solutions enable a merchant with a poor credit score to be successful. Additionally, once accepted, PayKings can install chargeback management applications, payment gateway, and fraud filters.

Requirements Needed when Applying for a Bad Credit Merchant Account

Bad credit can happen to anyone. Not to worry. You can still get approved for payment processing. Merchants and retailers looking to apply will have to submit the following items to processors and underwriters:

• A valid, government-issued ID, like a driver’s license
• A bank letter or a pre-printed voided check
• 3 months of the most recent bank statements
• 3 months of the latest processing bills (if applicable)
• Social Security Number or EIN (Employer Identification Number)
• A protected, fully-operational website
• Chargeback ratios under 2%

PayKings can promise a quick, simple application process for your high risk merchant account. We have a lengthy history of working with new and existing merchants with poor credit history. Some were refused or terminated by other credit card processors. PayKings has experience approving people with high chargeback ratios, poor credit, or no credit.

What Underwriters Look for Through the Bad Credit Merchant Account Application Process

Companies applying for a bad credit merchant account must prove that they are running a legitimate business. Underwriters evaluate risk based on whether retailers are complying with all the regulations and rules. Getting a merchant account with low credit means that underwriters will need:

• Your credit scores
• Credit card processing background
• Bank statements
• Company website

If a website does not have a privacy and refund policy, the outcomes will negatively affect your application process. Negative credit account balance invoices and late payments may put your account at risk. Moreover, a history of high chargeback rates or fraud increases the risk for your merchant account approval.

Payment Processing For Low Credit Merchants

The best method to prepare for an underwriter’s process is for a merchant to rectify any outstanding bills and invoices. If you have a substantial amount of money in the bank, you should show this in your application. So, the stakeholder in the business with the best credit history should apply.

To increase your likelihood of a credit merchant account approval, merchants need to be very transparent to underwriters.

What’s more, PayKings understands the unique needs of the different types of industries in need of a merchant account with less than ideal credit. We have established 24+ acquiring banking relationships to become experts in getting a bad credit merchant account set up.