With today’s tough economy, many people are finding that their credit scores just aren’t what they used to be. However almost everyone should still be able to qualify for a merchant account. The only people who may really have difficulty are those who are involved in an open bankruptcy at the time they apply. It may surprise you how easy it is to get a merchant account, even with a poor credit history. However, you will need to shop around a bit and see what various companies are willing to offer.
There are a number of merchant account providers who will work with individuals who have bad credit. The only downside is that they typically charge higher fees to business owners they consider to be a greater risk. Even if you know your credit score is marred, be sure to first check with a merchant account provider who does not handle high risk merchant accounts. The bottom line is that if you can qualify for a regular account with your questionable credit, then you can avoid unnecessarily paying the heightened fees. Remember that one person’s opinion of bad credit is not necessarily the same as the next.
Some merchant accounts who provide service to those with bad credit may utilize a rolling reserve. This is where they hold back a portion of each sale for a period of time. It is merely a way to protect themselves in the event that you are unable to follow through with your business as planned. You may often see merchant account providers hold an amount equal to 3%-5% for a time period of 3-6 months. Other credit card processors may just increase your total funding time by a day. Obtaining a merchant account with bad credit may be easier than you think.