Credit card processing is an essential part of the e-commerce universe. Merchants who cannot process credit and debit card payments do not survive in such a competitive environment. Merchant accounts are the solution for credit card processing because they allow merchants to accept multiple payment options.
If you are a merchant with a bad credit history or no processing history at all, banks and other financial institutions will not provide you with a merchant account. Luckily, there are alternatives for merchants with bad credit, as will be discussed in this article.
The importance of a merchant account
According to Statista research, 87% of UK households made online purchases within the preceding 12 months(as of September 2020), which is the highest online purchase penetration rate in the country in the past 11 years.
Another study indicates that credit cards remain the primary payment method within the UK e-commerce space, accounting for 53% of payments. It is too much of a loss for companies that do not process credit and debit card payment options.
A merchant account allows you to accept payments fromcredit and debit cards. When a client pays for a product or service, the money is deposited into the merchant account and then transferred to the business bank account. A high-risk merchant account will do the same; however, it is specified for serving high-risk businesses.
What is a high-risk business?
Banks and financial institutions consider high-risk businesses too risky to provide with merchant accounts. Different factors may put some industries into the high-risk list, but it is the payment processor who decides to classify the business into high or low risk.
The criteria are usually related to the volume of chargebacks, fraud risks or processing history. Many merchant providers will deny your account if you have a liquidation recorded on your credit report. If your company has a bad credit rating or a bad processing history, it will be classified as high risk.
Alternatives for merchants with bad credit history
The best alternative for a merchant with bad credit history is to find a reliable payment processor that can provide a high-risk merchant account, such as iPayTotal. We specialise in high-risk businesses and can offer customised solutions for your business.
A reliable payment provider with proven experience inhigh-risk businesses is essential because it will give you the security you need to start processing payments and rebuild your reputation with customers.
At iPayTotal, we understand the specific requirements and needs of each business and offer features such asbeing offshore merchant accounts, quick approval, on-time pay-outs and reasonable rates. Our secure payment gateways help to reduce fraud risks and chargeback ratios, which are responsible for substantial profit losses. Let us help you change the route of your business.
Contact us today and talk to our experienced team!
The application process for merchants with bad credit
Any application process at iPayTotal follows the same first step: fill in the online application form. It is very easy and fast. Our team can then assess your business’s needs and requirements and offer a customised solution for your company.
We will have a good idea of which banking partners are the most suitable for your business within 1-3 business days after receiving your application. We may require extra documentation depending on the company’s history.
Do not assume that you will not be able to obtain a merchant account because of your processing history. It is not impossible to process online payments when you are part of the high-risk industry. We can help you at iPayTotal. It does not matter if you have had challenges in the past; we want to help your business to grow and succeed.
Apply now for a high-risk merchant account at iPayTotal.