Finding Merchant Accounts With No Credit Check
When opening a merchant account, bad credit is a big issue. Bad credit affects financial institutions and merchant accounts alike. Credit scores are skewed and range. However, having an exceptional credit score means you’re more likely to have your application approved than those with poor or average scores. But this doesn’t mean you should automatically assume you’ll never be turned down.
Before choosing a provider, carefully read their terms and conditions, fees, and any limitations associated with the account. Consider the specific needs of your business and balance the convenience of quick approval with the potential downsides of these alternatives. Here are a few things to remember when searching for a merchant account with no credit check.
For further information and pricing on merchant accounts, click here.
How to Find a Merchant Account with No Credit Check
|Card payment machines for small businesses:
|1- or 12-month contract & £0-£150 setup fee
|No monthly fee & no lock-in
|No monthly fee & no lock-in
|12-18 months’ contract & £150 setup fee
|18-month contract & mix of costs
|1- or 6-month contract & monthly min charge applies
|No monthly fee & no lock-in
|Get quote, personalised onboarding
|Short online form, quick acceptance.
|Online registration with verification steps
|Get quote, online sign-up
|Tailored quote, personalised onboarding
|Get quote, start within a week
|Short online form, quick acceptance
|Tailored packages, great customer service
|Low fixed rate, Cheapest terminals
|Flexible across borders
|Great for existing Barclays customers
|24/7 sales support, better fees for £250k + turnover
|Short contracts, great terminals
No Credit Check: Avoid High-Risk Accounts
If you want to avoid a high-risk merchant account, you need to understand the nature of your business. Those who sell essential goods such as clothing or baby items, or those that have an expansion into other countries or industries, are considered low-risk merchants. Nevertheless, you should not be caught off guard by sugarcoating company practices, as this may cause an inaccurate rate quote.
To avoid a high-risk merchant account, you should take the time to raise your credit score and protect yourself from chargeback fraud. Moreover, a positive merchant account history will gradually tip the scales in your favour. An example of a high-risk merchant account provider is Durango, which charges between £20 and £40 per transaction. As mentioned above, high-risk merchant accounts are associated with higher charges for credit card processing and chargebacks.
This is because high-risk merchants are categorised as risky by payment processors. Therefore, high-risk merchants must pay higher processing fees to avoid high-risk status. You should avoid applying for a high-risk merchant account if your business meets these criteria. When choosing a high-risk merchant account provider, you should understand the fine print. A high-risk account provider will charge higher fees and demand strict contract conditions.
It may also require more paperwork than a typical merchant account provider. In addition, the company that accepts you must adhere to more strict conditions than a typical merchant account provider. It may also require a higher deposit. So, make sure to carefully select the merchant account provider that has the best rates. In conclusion, high-risk merchants should look for a processor with a low chargeback rate.
Chargebacks are the biggest threat to a merchant’s profit margin and can destroy their business. Chargeback management services help protect revenue against excessive chargebacks. However, high-risk merchants should carefully examine the fine print of their payment processors. Then, they should consider using a dispute resolution management platform to reduce the risk associated with chargebacks. Although high-risk merchant accounts are difficult to obtain, they are not impossible.
You can negotiate with your payment processor and request that they do not perform a credit check. Generally, these companies will require you to reserve money to cover unforeseen situations. Then, you can apply for a high-risk merchant account with a high-risk payment processor. It’s a good idea to work with a high-risk payment processor to establish a business relationship with the company. Negotiating with merchant account providers When looking for a merchant account with no credit check, you may want to consider negotiating with a payment processor.
Negotiating with a processor without a credit check is possible, but you must ensure the account provider offers no credit check service. Some payment processors will partner with other companies to supply payment systems and equipment, but it is best to find one that will provide all services in-house. Instant approval accounts may not be the right solution for merchant accounts with no credit checks. The issue of bad credit can make it harder to receive instant approval for merchant accounts. A high chargeback rate indicates a risky business, and banks tend to avoid risk at all costs.
Moreover, this will raise red flags if you’ve previously experienced a merchant account termination.
Despite the widespread belief that bad credit is a primary reason for rejection, the reality is that most credit card processors will approve your application based on different criteria. These criteria include a personal credit score. In addition to your business credit score, banks will consider your credit score in determining whether to grant you a merchant account. Generally, companies with low credit are considered high-risk, and those with lower credit are generally turned down. However, some providers are specifically designed to accept bad credit and even deny people with poor credit.
Moreover, there are also high-risk merchant account providers. These companies allow greater flexibility than financial institutions. Most of these providers have a minimum refund and chargeback ratio threshold. A Tier-one bank will enforce a one per cent chargeback ratio, while entities serving high-risk merchants may allow chargebacks up to three per cent. Refunds, however, can be as high as ten per cent. Even if you’re a high-risk business, instant approval merchant accounts are not the best solution for merchant accounts with no credit check. These providers don’t disclose their pricing, so you should shop around to get the best rate.
They also have other ways to earn their money, so you should be wary of any merchant account that advertises no credit check. Before applying for a merchant account, you must know your business. Generally, you’ll need to provide your tax ID number, business license, business bank account information, and other information. You may also be required to submit a financial statement, processing history, and company policies. Unlike merchant accounts with no credit check, an instant approval account won’t give you a better chance of success. Besides the lack of a credit check, high-risk merchant accounts may not be the most profitable option for your business.
High-risk Merchants Can Receive Referrals
They can’t be easily approved, making them sign up with the first provider. Instant approval merchant accounts may be attractive, but the delays and other hassles that come with them might not be worth it. High-risk merchant account providers don’t automatically cancel your account if you reach certain thresholds. However, they may impose a probationary period. Inquire about the consequences of crossing these thresholds. Accepting both international and domestic cards is considered high-risk.
However, you should know that high-risk merchant accounts allow international credit card payments. Some traditional merchant accounts don’t allow international credit card payments.
No Credit Check – Other Useful links from our knowledge centre:
Why You Should Invest in PCI Certification Training
Customer Support Vs Customer Service
The Benefits of Omnichannel Customer Service
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