Looking for a Bad Credit Merchant Account?

Open A Bad Credit Merchant Account

A business that needs a bad credit merchant account is classified as high risk. This classification can occur for a variety of reasons. That being said, regardless of the reasons why, being a high risk business can make it extremely difficult to find a reliable credit card processor.

You need an experienced payment processing company like PayKings. We specialize opening high risk merchants accounts, ecommerce, and online businesses who operate solely as card-not-present merchants. What’s more is that we have relationships with multiple acquiring banking partners that offer bad credit merchant accounts.

Payment Processing For Bad Credit Businesses

When your FICO score is low or you have bankruptcy in your credit history, you become a high risk contender right away. This is because your credit report is such a primary factor in banks deciding whether or not to work with you. Over 90 million Americans are falling into the bad credit category. So this can only mean one thing. Real solutions for acquiring a bad credit merchant account are available. You just need to know where to look.

Your bad credit merchant account will function in the same way as a short-term loan from the bank’s credit card processor. This means that any mishaps with funds being refunded or canceled will fall directly on you, the business owner’s shoulders.

Bad Credit Payment Processor

Things like credit card chargebacks can become a huge issue for merchants. And when a bank sees chargebacks occur regularly, this can also push merchants into the category of being high risk. Think of it like this: when you make a sale, you expect the funds to be in your account within 12-48 hours. This time frame is a typical turnaround time for card-not-present merchants. However, it can take your bank up to 30 days to see those funds come in on their end.

So, let’s say you get paid for a sale, but the credit cards used for the purchase were stolen and the bank doesn’t end up getting paid. Where do you think they will come looking for that money? That’s right. They will come after you, the bad credit business owner. This is how your personal credit score comes into play.

The banks look to this as a track record of your ability and willingness to pay up in situations like these. Therefore, when you have bad credit, banks may not choose to provide payment processing for your business. It’s too much of a gamble and the risk is too high, which is exactly why you need a bad credit merchant account.

What Is A High Risk Bad Credit Merchant Account?

Individuals who apply for payment processing through a bank who happen to have a credit score of 580 or less are considered bad credit merchant accounts. This means that applying on your own, without an expert in this industry, makes the chances of getting approved very low. The term bad credit merchant account simply means a merchant account for a business owner who has poor or bad credit, typically when it comes to their FICO score. Banks, creditors, and underwriters take your credit score into account in a big way when considering whether or not to approve a business for a low risk merchant account. In the case of a business owner who has poor or bad credit, that merchant is considered to be in need of a high risk credit card processor. And if that business intends to accept debit or credit cards, they will have to attain a bad credit merchant account with a trusted high risk payment processing company like PayKings.

How Does Being High Risk Affect Your Chances of Getting a Bad Credit Merchant Account?

Businesses that are considered high risk have to know who the right processors are. Those high risk merchant account providers that are willing to process transactions for your high risk business, reputable companies like PayKings, offer solutions to businesses that need it most. These payment processors are willing to accept the liability for the increased risk associated with ventures categorized as high risk businesses.