This article was written by Charge.com Payment Solutions, Inc.
High risk credit card processing comes with many challenges. You’re a high risk company if you run a business on the internet. You’re also considered a high risk business if you have bad credit or prior bankruptcies. The problem with being a high risk company is that many banks and merchant account providers won’t work with you. If you are magically approved for a high risk merchant account, you get hit with high credit card processing rates as a punishment. If you’re tired of being denied for a merchant account or high credit card processing rates, follow these tips on how to get approved for a high risk merchant account.
Improve Your Credit Score
Your credit score is very important in the financial world. If you have a low or bad credit score, it’s worth the time and money to improve your score. The first step is to remove any false negative reports on your account. Then, take the time to get rid of late payments, past bankruptcies, or liens before applying for a merchant account.
The second step is to improve your credit score over time. This means you will need to make your monthly payments on time. If you have to, consider hiring a company that helps you learn good credit card habits.
Find an Affordable Merchant Account Provider
Even though you have a high risk business or a poor credit score, it doesn’t mean you should have to pay expensive credit card processing fees of software such as a payment gateway. Compare several merchant account providers to find one with low rates. Take advantage of low credit card processing fees. It’s also important to look for a company that doesn’t charge to process your application or provide you with software.
Apply for a High Risk Merchant Account
If you have tried everything to improve your credit score, you shouldn’t give up on getting a merchant account. Instead, look for a merchant account provider that deals with high risk businesses such as your own. This means that their customers are companies like your company, with poor credit or past bankruptcies.
A high risk merchant account is also more suitable for ecommerce companies. If you own a company on the web, you’re considered a high risk and many banks will not approve your account. However, when you go through a merchant account provider that handles high risk accounts, you have a higher chance of getting approved for a merchant account.