Need to Open a Bad Credit Merchant Account?
A business that needs a bad credit merchant account is classified as high risk, and this classification can occur for a number of factors. That being said, having a high-risk business can make it extremely difficult to find a reliable credit card processor. You need an experienced and dependable payment processing company, like Double Helix Processing. We specialize in working with high risk merchants, eCommerce, and businesses who operate solely as card-not-present merchants. More importantly, is that we have relationships with multiple acquiring banking partners that offer bad credit merchant accounts.
Have You Lost Payment Processing for Your Bad Credit Merchant Account?
When your FICO score is low, you become a high-risk contender right off the bat. This is because your credit report is a primary factor in banks deciding whether or not to work with you. With over 90 million Americans falling into the bad credit category, it means that real solutions for acquiring a bad credit merchant account are there and available to you, you simply 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 your shoulders.
Things like credit card chargebacks can be a major issue for merchants and when a bank sees chargebacks occurring 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 24-48 hours. However, it can take your bank several days to see those funds come in on their end.
So, let’s say you get paid for a sale but as it turns out, the credit cards used for the purchase were stolen and the bank doesn’t end up getting paid for those transactions. Who do you think they will come to recover that money? That’s right, they’ll come to you. 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. This is precisely why when you have bad credit, banks may not choose to provide payment processing for your business, it’s too much of a gamble and that risk is simply too high. This is exactly why you need a bad credit merchant account.
What is a High-Risk Bad Credit Merchant Account and How Can Double Helix Processing Help?
Individuals that apply for payment processing through a bank that happen to have a credit score of 600 or less are considered bad credit merchant accounts, which means that applying on your own, without an expert in this industry makes the chances of getting approved less likely. The term bad credit merchant account in and of itself quite simply means a merchant account for a business owner who has poor or bad credit, typically when it comes to their FICO score. Banks and creditors, underwriters in general, take your credit score into account in a big way when considering if they will want to approve a business for a low risk merchant account. In the case of a business owner who has less than perfect credit, that merchant is considered to be in need of a high risk credit card processor if that business intends to accept debit or credit cards which means they will have to obtain a bad credit merchant account through a company like ours.
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 Double Helix Processing, offer solutions to those businesses that need it most. These payment processors are willing to accept the liability for the increased risk associated with those deemed as high-risk businesses.
Surprisingly, most merchants categorized into this class are typically unaware of it. So, how do you know whether or not you are in a fit into the category of high risk? Check out our list of high-risk industries as categorized by banks.
Why Should You Choose Double Helix Processing?
We understand the unique needs of the different bad credit related business types and have established numerous acquiring banking relationships to become your best resource in getting bad credit merchant accounts set up and accepting online payments. Our expertise is your ticket to getting the stable processing you need to further your business.