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Merchant Account with Bad Credit

You’ve probably heard the common saying that the rich get richer, and the poor get poorer.

There’s some truth to the saying. It seems as though people with bad credit can’t get ahead while the rich borrow money and leverage it to earn more income than their personal wealth could ever generate.

If you have a killer idea for a business, you can change the dynamic, but you might discover a few stumbling blocks along the way.

If you want to sell products by mail or over the internet, it’s essential to get a payment gateway and credit card processing services. 

Merchant Account with Bad Credit

However, aspiring entrepreneurs quickly discover that some businesses–and some business owners–are considered high-risk.

Banks will often deny your application for a merchant account to handle credit card processing because the business you’ve chosen is considered high-risk or because you have bad credit or no credit. 

Why Credit Card Processing Privileges Require Financial Responsibility

Most credit card processors deny these high-risk applications because the risks of legal actions and high chargeback rates make underwriting the credit card charges risky.

If your chargeback rate goes over 2 percent, processors can lose money. People with bad credit are considered at-risk for higher chargebacks, fraudulent credit card charges and other risks. 

The Blue Wave Merchant Solutions Difference

At Blue Wave Merchant Solutions, the company handles processing for high-risk companies and owners with bad personal credit.

Getting approved for a merchant account is your first step to restoring your credit rating and earning a better income.

Payment processing capabilities increase sales regardless of whether you own a brick-and-mortar store or want to sell your products online. 

The first benefit of getting a merchant account with bad credit is that you can build customer trust in your business and your financial responsibility.

Blue Wave approves most of its applications and supplies everything you need to get started processing credit and debit cards.

The company offers the following extras to their credit card processing services that include: 

  • Technical Advice and Support 
    Your receive all the software and equipment to start taking credit cards right away. A decision on your application is usually made within two days.

  • Valuable Advice 
    Some entrepreneurs choose offshore credit card processing because there is no credit check. However, the fees and charges are usually much higher and cut into your profit.

  • Program to Reduce Chargebacks 
    Regardless of your processor, it’s important to keep your chargebacks as low as possible. Frequent chargebacks that total more than 2 percent could cause any processor to suspend your account. Blue Wave works with business owners to help them reduce chargebacks. Providing good customer service can prevent chargebacks by addressing customer concerns, confirming their orders online, sending a valid receipt and monitoring product deliveries.

  • No Long-term Contracts 
    If you manage your merchant account well, your personal credit rating will improve over time. The fees for high-risk processing are slightly higher, but you can renegotiate as your credit improves.

The Incredible Benefits of a High-risk Merchant Account

There are many benefits of obtaining a merchant account bad credit to process credit and debit cards. These include: 

  • Ability to take credit and debit cards online and at brick-and-mortar stores.
  • All the necessary technology including a payment gateway and processing ability for automated payments for services
  • Capability of applying to offer merchant cash advances to your customers
  • Chargeback prevention services
  • In-depth reports for your accounting records
  • Better credit ratings as long as your account remains in good standing
  • Increases in sales totals including larger transactions and more customers
  • Customer convenience that helps to foster loyalty

Your Chargeback Rate Is Critical

The transaction fees and setup charges are higher for high-risk credit card processing, but you have options to get a better rate by keeping your chargeback rate low.

Chargeback insurance can help reduce your risk–especially if you have bad credit and are running a high-risk business such as a head shop, smoke shop, student loan document preparation company, adult entertainment business and others. 

Detailed reporting enables you to monitor your chargeback rate and determine what seems to be causing the chargebacks – such as a particular product or line of products, delivery problems, orders that aren’t confirmed by an email receipt and other problems such as the fraudulent use of credit cards.

One of the biggest issues that generates chargebacks is underage kids or unauthorized users charging items on a parent’s or friend’s credit card. 

How to Apply for a Merchant Account

The process of applying for a high-risk merchant account is simple if you have everything ready. You will need the following verifications: 

  • Proof of identity
  • Bank statements
  • Proof of ownership
  • Copies of relevant business licenses
  • Details about the business
  • Information about any previous history of using a merchant account
  • Website for online sales

It’s important to supply accurate information and not to provide misleading information because of your bad credit history.

If you’re selling online, you will need a functional website.

If you provide the needed information, your account can be pre-approved within a day or two, and you can start accepting credit cards within 72 hours. 

Start Accepting Credit Cards and Restore Your Financial Prospects

Start getting your information ready to change your financial prospects and restore your good credit.

Most people experience financial hardships that result in an occasional drop in their credit score.

You don’t have to accept a low credit rating as a barrier to starting a successful business.

Contact Blue Wave Merchant Solutions today to get more information about what you need to apply or to begin your application immediately.

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  • No Setup or Application Fees
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