Merchant accounts give your company credit card processing capabilities. When you are able to process credit card payments, you give your customers another option to pay for their purchase. If you run your business strictly online, credit card processing capabilities are a must for your business. Will you have a harder time getting merchant accounts if you have a criminal record?
A Criminal Background Check Is Conducted
Business owners should understand that a full criminal background check will be done prior to your account being approved. This means that any crimes that you have committed in the past could come back to haunt you. If you have a record of money laundering or other types of financial fraud in the past, it could jeopardize your ability to get a merchant account.
How Good Is Your Credit?
If you have a criminal record combined with a poor credit score, it is unlikely that you will get a merchant account from a reputable merchant account provider. This is because those with poor credit have more of an incentive to commit fraud or other crimes that result in a financial gain for the business owner.
What Type of Business Are You Running?
The type of business that you are running could be a factor if you have a criminal record. A business that could be seen as a front for illegal activity could hinder your chances of getting a merchant account. Reputable merchant account providers will take the time to scrutinize your business and make sure that it is worth the risk before approving your application.
You Could Still Get an Account
The good news is that you could still qualify for a merchant account even if you have a criminal record or a bad credit score. However, you should be ready to explain what happened in the past. If you can offer a satisfactory explanation as to why you have a criminal record, it may be possible for past transgressions to be overlooked.
Will a criminal record impact your ability to get a merchant account? Depending on your current circumstances, it could be the reason why your application is denied. However, those who run legitimate operations and can prove that they have changed their ways could get an account in spite of their past.