04 Dec Can You Get a Merchant Account if You Have a Low Credit Score?
Merchant accounts are a must for business owners who wish to compete in this fast-paced business atmosphere. It’s difficult to ignore the fact that a large majority of consumers are making the transition from cash to credit cards. Online retail sales are growing rapidly due to the charge-friendly environment in cyberspace. This widespread use of charge cards is rapidly turning the option of credit card processing into a necessity.
Since credit card acceptance is becoming a basic requirement for all businesses, does this also mean every business owner will automatically qualify for a merchant account? If so, does this also include business owners with low credit scores? How difficult is it for an individual with a low FICO score to get a merchant account? Are the eligibility requirements usually stringent or will most merchants work with entrepreneurs dealing with credit issues?
The prerequisites for obtaining credit card processing systems will vary from merchant to merchant. However, most payment system providers will not reject potential customers who have low credit scores. Charge card processors are payment options that provide customers with additional ways to pay for their goods and services. The past credit history of the individual or business has no bearing on the performance of the actual payment system.
This doesn’t necessarily mean that other factors cannot impede individuals who have low credit scores. For example, most payment system providers will require potential customers to have checking accounts before receiving services. If an individual’s past credit history is less than desirable, they may not qualify for a checking account right away. They will need to settle their credit issues and raise their credit scores before they can receive a checking account.
Having a debt looming with any payment provider can also keep a person from obtaining a merchant account. Not only will it affect their credit score, it will also cause other merchants to question the person’s credibility. This debt is not worth keeping since it can actually prevent the individual from gaining more clients and growing their business. A smart business owner would settle this type of debt on a moment’s notice for the sake of their company.
As long as an individual with a low credit score has a checking account, they should be able to obtain a charge card account without a problem. Payment providers will work with anyone, regardless of their past credit history. Once this individual has their account, they will be responsible for keeping up with the costs associated with this arrangement. As they keep up with payments, they will have a chance to improve their reputation while building their business at the same time.