If one is going to receive an account for payment processing in the UK but doesn’t have a worthy credit history, they need to keep in mind some things. In today’s article, we will cover some information that may come in handy for those trying to understand such phenomena as sometimes called bad credit merchant accounts as well as getting one. Here we go!
What merchant accounts are considered ones with bad credit?
Accounts that some call merchant ones with bad credit are a kind of high-risk merchant accounts whose holders have a bad credit history that is one of the main reasons why different financial institutions refuse to work with some businesses. In case you have problems with it, our team of professionals would recommend you to seek the services of a high-risk payment gateway in the UK that caters to such accounts.
Causes of bad credit history
Any owner of a merchant account may have different causes that led them to that state. Some of them depended on them, some — happened through no fault of their own. The major causes are as follows:
- Missed payments.
- Late payments.
- Failure to fulfill loan obligations.
- Bankruptcy.
- Foreclosure.
Setting up a merchant account with a bad credit history
Due to guide you through getting instant approval for a merchant account in case of having a bad credit history, here are some key points that you should bear in mind:
- Preparation of the documents. Please make sure you gather all of them. Note that all the documents must be presented in English.
- How to get credit card instant approval? First, you need to fill in the application form and then wait for it to be approved (usually this takes from one to two full days).
- Count the chargeback ratios. Some processors may approve applications solely on the grounds of a respectable level of chargebacks.
- Most processors pay close attention to the credit score as it is one of the key threats to a company’s future. Choose a provider that focuses on merchant accounts with a high level of risk.
- Be prepared for excessive fees. A bad credit one requires additional fees to cover its risks of payment processing.
What services may holders of merchant accounts with bad credit receive?
In order to operate properly, each business with bad credit needs a merchant account. A payment processing provider, in its turn, can provide one with several services:
- Fraud and chargeback prevention management.
- Several secure payment gateway options.
- Corporation setup.
- IBAN settlement of bank accounts.
Final thoughts
Some of you may be questioning, “Can I get a merchant account with bad credit?” At PayFasto, our answer is, “Yes, definitely!”. We can help you to open an account with any level of credit history. Our team of professionals totally understands what obstacles one may face opening an account with improper credit past and is set to give high-quality payment processing services as well as improve the status of any business. Please don’t hesitate to contact us, we would always love to hear from you.
