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Bad Credit Rating Merchant Processors

Our Top Picks for Bad Credit Merchant Account Services

  1. Easy Pay Direct
  2. eMerchantBroker
  3. Dharma Merchant Services
  4. Helcim
  5. Mynt POS

1. Easy Pay Direct

Easy Pay Directs is known for working well with "high risk" merchant account providers. This company is designed to make your life easier. EPD will take the time to get to know you and your business in order to bring you the services you need. 60,000 merchant accounts have been serviced by EPD and that number is growing every day. Easy Pay Direct accepts payments online, in store, or on a mobile device.

2. eMerchantBroker

eMerchantBroker is a full service merchant provider. They offer the most competitive pricing and the highest rate of approved high risk merchant accounts. If your business has unique needs, eMerchantBroker offers unique solutions. EMB can get you approved today in minutes at the most competitive rates. Their expert customer service will keep you up to date on all of the things you need in order to accept payments with ease.

3. Dharma Merchant Services

Dharma Merchant Services excels with employees of non-profit organizations, restaurants, and retail establishments. They will provide you with the tools you need to make taking payments a seamless experience. Dharma offers 24 hour priority funding and 24 hour tech support, so you can get the help you need as soon as possible. They also pass 100% of processing fees for credit card paying customers. By choosing Dharma Merchant Services you are investing in low rates and great solutions.

4. Helcim

Helcim provides amazing customer service and will answer any potential questions you may have. Their pricing is 100% transparent and will save you money in the long run. With one helcim account you get unlimited access to all of the payment solutions and every tool your business may need. Helcim is best for small businesses. Their mission is to be the world's most loved payment company.

5. Mynt POS

Mynt POS has everything you need for your point of sale. They accept all forms of modern payments in order to make collecting transactions easier. Every Mynt subscription comes with a lifetime warranty and free support. Dedicated remote training and installation support is included with a Mynt memebership. Mynt has everything you need for your point of sale.

If you have less-than-perfect credit, it may be difficult to find a merchant account provider willing to work with you. In other words, this does not mean you are without options! You should, too. Many businesses assist people who are behind on their payments. The good news is that your credit card processing history may qualify you for lower rates in the future.

It is critical to select a payment processing company that works with companies with bad credit. Let's go over some of the factors to consider when choosing a business. However, we'd like to introduce you to a few of the best companies that work with small businesses just like yours.

What is a Bad Credit Merchant Services Provider?

Businesses can hire companies to help them process credit cards and other forms of payment, such as checks. These companies' employees refer to themselves as "mercantilism service providers." A bad-credit firm is the same as the type of company that has worked with and is willing to work with.

Many business owners believe that if they have bad credit, they will be unable to obtain a merchant account provider. This is not true. This is not true. Many companies in the business world work with people who have less-than-perfect credit.

What Services do Merchant Account Providers Offer?

While merchant account providers can help businesses in a variety of ways, their primary goal is to help them get paid for their goods and services. When you make a sale, the money is transferred to your merchant account.

When a bank approves a sale, the money from the customer is taken and transferred to your merchant account. The funds are then transferred to your business bank account after any expenses have been deducted. Some companies also help with payment processing. Many business owners appreciate this because it allows them to get both of these services in one place, saving them both time and money.

Additional Services

Additional services that are offered by MSPs:

  • Loyalty and gift card programs
  • ATM placement and maintenance
  • Business funding (working capital)
  • Payroll and other bookkeeping services
  • Inventory tracking and management

What Types of Merchants Need Bad Credit Payment Processing Services?

Because of a company's poor credit, it may require the assistance of a credit card processing company that works with companies with bad credit. Keep in mind that your credit will be checked as a business owner. Many MSPs will consider you a high-risk borrower if you have a low credit score.

History of Bankruptcy

Have you ever declared bankruptcy, or has your company? Is this the case? If this is the case, you will almost certainly be classified as having "poor credit." The good news is that filing for bankruptcy will have no long-term impact on your credit report. It is only for seven years (Chapter 13) or ten years (Chapter 14). (Chapter 14). (See Chapter 11 for more information.) (Second Chapter) After the required time period has passed, your bankruptcy will be completely removed from your credit history. 

Low Personal Credit Scores

Your FICO credit score's current value is the most important thing to understand. If you have a credit score of 580 or lower, you may be considered a credit risk and placed in the "poor credit" category. You might benefit from having a long-standing business. However, if your company is new and you have a low FICO score, this could be a bad thing.

Outstanding Personal Judgments or Liens

If a judge convicts you in a criminal or civil case, it can have a significant impact on your credit score. If you have a lien, you have some flexibility as long as you pay your bills on time. If you have a lien on your property as a result of late tax payments or if you used your home as collateral for a monthly loan, the rules are different.

Should Merchants with Bad Credit Use Payment Aggregators Rather Than MSPs?

Many businesses choose not to use a credit card processing provider because they have poor credit. They chose to work with a credit card aggregator instead. Payment aggregators, such as Stripe, PayPay, or Square, are companies that process payments. They all work together to facilitate payment.

These companies help businesses with payment processing. On the surface, their services appear to cover everything that a business could want or need. Collaboration with these firms may not be the best option for your company.

Payment aggregators use a single master merchant account to pay for everything. As a result, if a company receives an unusually large number of chargebacks, its account may be jeopardized. If a merchant receives a high volume of chargebacks, companies like Stripe and PayPal may place a hold on the merchant's account. They may also do so for a variety of other reasons. It could take some time to receive your money back.

Individuals who manage businesses may discover that payment aggregators terminate their accounts for no apparent reason on occasion. It is preferable to work with a managed service provider (MSP) to get your own merchant account and payment processing solution.

What to Consider Before Selecting a Provider of Bad Credit Merchant Accounts

If you decide you need a merchant account, make sure you choose one that accepts people with bad credit.

You Will be Considered High-Risk

High-risk people cannot avoid it for the time being. While time is on your side, this does not imply that everything will be easy. For the time being, you may have to pay a little more for things like gas and electricity. However, once you've accumulated some processing history, all of this could change.

You should be able to negotiate contract terms with any business with which you want to do business in the future. When your company is no longer deemed high-risk, you may want to look for a new merchant account provider who can provide you with a better rate.

Be Careful About Signing Contracts

Individuals who work with high-risk individuals are more likely to demand long-term contracts from any company with which they do business. This does not, however, mean you should disregard it before entering into a contract with them.

To begin, make sure you understand what you're signing before you sign. All fees should be specified in plain language that is easy to understand. What if something seems illogical? If it doesn't, find out why.

Furthermore, if at all possible, avoid entering into a long-term contract for any payment processing equipment, such as a point-of-sale system or credit card terminal. Contracts of this type can be long and expensive, but they can also be quite long.

You could end up spending a lot of money on items that would have cost a few hundred dollars if purchased outright. Furthermore, equipment contracts are frequently diametrically opposed to payment processing service contracts, which are diametrically opposed to equipment contracts. They could even be two separate contracts with two separate businesses. Before signing any contract, ask as many questions as you need to.

Rolling Reserves

As a high-risk merchant, you may be subject to rolling reserves, which may be perplexing to a business owner unfamiliar with the concept. You deposit a set amount from your sales into a separate account each month. This amount of money is known as a "rolling reserve."

If there are too many chargebacks, the funds are used to protect both your organization and the MSP. After six months, the money that was taken from your account in the first month will be transferred to your company account. This is known as "rolling." This process will continue, and one day you may discover that you don't need any reserves at all.

How to Get a Merchant Account if You Have Bad Credit

You may be required to do additional work in order to obtain a merchant account for your business. Because you can still get one. If you are a high-risk merchant, the process is nearly identical to that of a low-risk merchant, with the exception that your account may take a little longer to be established.

Furthermore, you'll discover that only a few businesses are willing to take that risk, but they do exist. Consider the following to get started:

  1. Investigate as many MSPs as possible that work with low-credit businesses. Check to see if they have everything you need.
  2. You should collect quotes from the people you admire the most and compare them side by side.
  3. Strive for the best possible deal. You could also try to negotiate a lower processing fee or request that your early termination fee be waived if possible.
  4. Submit your application along with all necessary documentation. You should be aware of their desires if they claim to require everything.
  5. Wait for them to respond with their thoughts on whether or not you like it. Remember that even if you provide everything they require, you may still have to wait a week or two before being hired.
  6. After you've been approved, go over your contract carefully. Don't be afraid to ask questions if you're unsure about something.

What to Expect with Bad Credit Credit Card Processing

The bad news is that if your company is classified as high-risk, payment processing will be more expensive. There is also more to look forward to.

Higher Fees

A higher initial fee will be required to open a merchant account and obtain secure payment processing. Many merchant service providers charge a monthly or yearly fee for their services.

It is critical to read carefully because it is not always clear what the application and approval fees are. Before signing a contract, it is critical to ascertain the existence of any hidden fees.

Higher Processing Rates

If you run a high-risk business, you should expect to pay roughly double the transaction costs that a traditional business would. Some suppliers charge on a tiered basis, whereas others charge interchange-plus, which is more straightforward and frequently less expensive.

Limits on Monthly Processing Volume

You're likely to have a monthly transaction limit if you have a high-risk merchant account. If you go over that limit, the corporation may put a hold on your funds until the remainder of your payment is made.

The simplest way to avoid this is to be completely open about the processing volume you expect each month. Each employer will inquire about this, so be open and honest about the volume of business you expect.

In the world of credit card processing, honesty is always a good thing. As long as you don't try to hide anything from your MSP, they'll be far more willing to help you.

Programs That May Help

The best providers of high-risk merchant accounts understand how difficult it is to deal with your situation. You might also be able to get help from a few of them, such as:

  • Chargeback insurance: is provided in the event that your account receives a large number of chargebacks and you require assistance dealing with them.
  • Avoiding Chargebacks: To avoid chargebacks, you must keep an eye out for potential chargebacks and try to prevent them before they happen.
  • Fraud detection: detecting suspected cases of fraud that could result in a large number of chargebacks.

Final Thoughts

A low or negative credit score today does not guarantee that you will have one for the rest of your life. That is something you can always work on improving.

Soon, you may be able to replace the high-risk CPU with a less expensive one. This is the time to be extremely cautious when choosing a provider of bad credit merchant accounts. Check to see if they have a high number of positive reviews.

Our favorites are listed here:

  1. Easy Pay Direct
  2. eMerchantBroker
  3. Dharma Merchant Services
  4. Helcim
  5. Mynt POS

Merchant Accounts

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