Merchant Accounts

Merchant Accounts


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Bad Credit Merchant Account

Written by Patricia Tunstall
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Approval Is Possible with Merchant Account Bad Credit

Merchant account bad credit will not prevent approval for check and credit card payment processing systems. Approval of business owners with good credit is not guaranteed, but with a 98% approval rate, few applicants for a merchant account setup are declined. Providers of processing accounts and equipment deal with certain banks that are inclined to approve merchant account bad credit.

Providers issue guidelines for approval that can let you know when you are online whether you meet them or not. It is far more important to meet these standards than to have perfect credit, because even a business owner with bad credit may be eligible for approval if all the qualifiers are met. A serious drawback, however, is a merchant who is undergoing a bankruptcy that has not been discharged for at least six months.

Guidelines for Approval

Two other negatives must be mentioned: appearing on credit card companies' CTMF file, and filing applications with false information. Otherwise, merchant account bad credit alone will probably not be determinative of approval. Check the provisions of these guidelines on the websites of system providers for complete details.

Automatic approval depends on the percentage of cards swiped, the monthly volume of credit card business, the average amount of each card transaction, and an acceptable kind of business. High-risk enterprises are not eligible for these accounts, but may obtain approval for high-risk accounts with different standards and rates. Electronic processing brings so many benefits to businesses that owners with bad credit should read the guidelines and apply for merchant accounts if they meet those guidelines.

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