Does Credit Effect Merchant Accounts
Friday, September 5th, 2008Welcome back!
Your credit rating can effect your ability to get a merchant account for credit card processing. When you apply for a merchant account, underwriters will look at a host of things, including your credit score. A bad credit score could stop you from getting a merchant account if your business type is slightly risky. For the most part if you have a retail location and resonalbe ticket sizes, your credit rating should not be a factor, unless you are currently in the process of bankruptcy.
Certain merchant services providers will accept more risk than others, so you may need to shop around. One alternative used by some merchant account providers, is to bring in a co-signer on the application. The co-signer does not need to be a principal in the business, but will assume any liabilities caused by a default on the account. Defaults could defined as not covering chargebacks, penalties, fees, etc. If you are have poor credit and wish to accept credit cards, you may want to consider credit repair to bring your scores higher. This would also allow you to qualify for better rates on business credit, as well.
If you have poor credit, please give me a call to discuss your needs.
MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683
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