The creditworthiness of a merchant plays a vital role in the successful operations of their business and helps them gain significantly from their merchant account providers. However, merchants fall prey to higher chargebacks, fraudulent practices, negative balances, or even bankruptcy in the worst case. Most financial institutions and merchant services companies deny working with business owners having poor credit.
We believe the deserved merchants are worthy of a second chance to re-establish themselves, certainly after proper investigation and documentation. If you are a high-risk business with lingering bad credit from previous ventures, but looking to obtain high-risk merchant account solutions, here is how you can return to good standing.
While a service provider might take a risk on you, there are specific terms and conditions you might have to adjust to. So, for example, if you are looking to obtain an online poker merchant account, the typical restrictions may include:
- Higher processing fees (for short or long term).
- Having a funding reserve for an extended period.
- Limiting your sales volume.
Besides, you must prove to the processor and underwriter that you are running a legitimate business and comply with the rules to get your merchant account.
To increase your chances of account approval, you must also prove that the processor is not taking a massive risk by granting you a merchant account. It would be best if you could satisfy outstanding debts, have a stakeholder with good credit, and maintain substantial funds in your account. Besides, you would benefit from opening a merchant account overseas since offshore processors do not ideally pull credit reports.
It is not impossible to get your merchant account even with bad credit – you need to put in maximum effort and partner with the right high-risk processor services. They make it easy for you to work for the future and seamlessly move from the past.
It may be a hard road to recovery, but you can apply for your merchant account and eliminate the complications without perfect credit. Partner with an experienced and trustworthy merchant account processor today and understand your options.