Even if your ecommerce business has a poor credit rating, probably through no fault of its own, there is no reason it should be barred from opening a merchant account. The solution is to look in the right place and follow the right protocol. Poor credit ratings are a factor in the risk assessment of an ecommerce business, and by doing what you can to minimise that risk you’ll find that opening a merchant account doesn’t have to be difficult.
Five ways for the business with a poor credit rating to get a merchant account
Here are five ways in which a business with a poor credit rating can help mitigate risk to the provider of a merchant account.
Use a guarantor’ co-signatory
Using a co-signatory with a good credit rating will increase the likelihood of merchant account acceptance.
Use a specialist high risk merchant services provider
It can be difficult to find a co-signatory, but that needn’t stop you from obtaining a merchant account. Some payment processing providers specialise in high risk merchant accounts. Our specialist advisors will be happy to help you find the right high risk merchant account.
Use a third party payment processing provider
Services such as those provided by North Payments take care of the whole transaction process for you. This mitigates a lot of merchant account risk, and so you’ll find it easier to negotiate favourable merchant account terms.
Provide the merchant account with a rolling reserve
If you have enough funds available, you could offer the merchant account provider a reserve to cover a potential default – though ensure you can afford it.
Accept an ACH delay
An ACH delay simply holds payment through ton your business account. This will give the merchant account a greater degree of safety, with more time available for the processing and legitimisation of transactions into your account.