How to Get a Bad Credit Merchant Account
May 30, 2019 | Merchants | Jessyka Lee
Knowing the simple rules for how to get a merchant account can ensure that your company can continue functioning on the financial road to success. Applying today for a bad credit merchant account with PayKings and 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 with scores between 300 and 600, and, additionally, giving them limited access to lending opportunities or being approved for a merchant account with bad credit.
On the other end of the spectrum, just 22 percent 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.
The factors included in being approved don’t always mean their stakeholders need a bad credit merchant account simply because their businesses did not work out as well as many other new businesses in the same industry. Past bankruptcies, tax liens, and bad 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, who specializes in approving business owners who need a merchant account with bad credit.
For merchants, applying for a bad credit merchant account is quick and easy with the PayKings application – who offers payment solutions that enable a bad credit merchant account to be successful and who also specializes in high risk merchant accounts. Additionally, once accepted, PayKings can install chargeback management applications, a payment gateway, and fraud filters.
Requirements Needed when Applying for a Bad Credit Merchant Account
A bad credit merchant account doesn’t have to be a sign that there’s no chance for you to get approved for payment processing. Merchants and retailers looking to apply for a bad credit merchant account 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 bad credit merchant account and has a lengthy history of working with new and existing merchants that have been 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 bad 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 bad credit merchant account application process. Negative credit account balance invoices and payments that are late, a history of high chargeback rates, as well as fraud are all factors that will increase the risk for your merchant account approval.
The best method to prepare for an underwriter’s process is for a merchant to rectify any outstanding bills and invoices, have a substantial amount of money in the bank, and also have the stakeholder in the business with the best credit history apply for the bad credit merchant account.
To increase your likelihood of a bad credit merchant account approval, merchants need to be very transparent to underwriters and processors who might be giving them a bad credit merchant account that they are not carrying any undue risk.
What’s more, PayKings understands the unique needs of the different types of industries in need of a merchant account with bad credit and has established 24+ acquiring banking relationships to become experts in getting a bad credit merchant account set up.
May 30, 2019 | Merchants | Jessyka Lee