There have been a lot of concerns as to whether one with a bad credit score can possibly obtain a merchant account. However, the truth is that merchant account processors are usually compassionate with customers with bad credit. If you wish to receive credit cards from your customers, you will require a merchant account and merchant processors accept credit card transactions for a fee. They also link your transactions with your business checking account.
Business owners with bad credit history or low credit score frequently have a hard time obtaining merchant accounts. The merchant account enables companies accept credit card payments from their customers notwithstanding if they pay in person or online, and as such, there are credit card processing options for owners who have poor credit.
Getting a merchant account is quite easy as it has fast approval rate, no setup and cancellation fees, no long-term contract, no leases, amongst others.
This may apply differently as a merchant processor has diverse criteria for validating your merchant account. Your credit is typically checked when applying for a merchant account, and your score determines what kind of merchant account you are entitled to.
The Bad Credit Statistics
According to the soar payment site, the credit scores of all Americans are graded as follows:
300 to 579: 29.7%
580 to 639: 25.4%
640 to 699: 21.8%
700 to 749: 12.7%
750 to 850: 10.4%
In view of the credit scores under 580, there are around (301.3 million total Americans x 29.7% = 89.48), so there are roughly 89.48 Million Americans who, if each one had a merchant account would need a bad credit merchant account.
Nevertheless, every American doesn’t need a merchant account, only business owners do. Obviously, these are all rough numbers, but the point is that there are loads of successful small and mid-sized businesses owned by individuals with poor credit. For these individuals, a bad credit merchant account is the solution.
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