Bad credit can have a negative impact on your business and that is the high risk designation even if your business does not match the high risk category. Being viewed as a high-risk business means only a few merchant service providers will work with high-risk businesses as well as organizations with bad credit.
It is a fact that getting a high risk merchant account for a business high risk merchant account with bad credit is difficult. Most of the time, large financial institutions will reject merchant account applications from a high-risk merchant account with bad credit.
But there is still hope for businesses with bad credit. It should not stop your organization from reaching its maximum potential. Experienced merchant account providers know the ins and outs of the processing for a high risk merchant account with bad credit get approved.
As most businesses expect, bad credit results in a high probability of rejected applications. And even if the application gets approved, it is very likely for the account to face restrictions (but that is another topic.)
For now, focus on the steps that will increase your chances of approval and get that high-risk merchant account despite the business’ bad credit history.
First, partner with an expert that specializes in high risk merchant account processing. Experienced high risk merchant account providers will work harder to get your application approved.
Second, only work with processors with a proven record of high approval of high risk merchant account with bad credit. Stay away from high risk merchant account processors with too-good-to-be-true promises like instant approval.
Lastly, work on lowering your chargeback ratio. Although this varies depending on your type of business, this is attainable by providing transparent business like pricing, shipping, return, and refund policies. And do not forget to provide excellent customer service to prevent customers from processing refunds that will hit your chargeback ratio negatively.
Since bad credit is viewed as high risk, payment processors will offset the risk by imposing higher transaction fees, account fees, and others. But as mentioned, there are experts in the high-risk industry who offer the best rates.
It is important to wisely work with a reliable processor since longer contracts limit your flexibility to earn more. But if you are faced with the challenge of a bad processor, the early termination fee will get you out of a bad and expensive contact.
Start looking for a high risk merchant account with a bad credit provider with payment processing solutions that fit your business need. Look for a processor with solid experience and good relationships with banks and financial institutions for that dependable and transparent business solution.
Even if you have been rejected by others, there will always be that high risk merchant account with bad credit provider that guarantees for your application to get approved.