Bad Credit Merchant Accounts

Has your business been declined for a merchant account? Where do you turn for credit card processing services if your business has bad or no credit?

BankCard USA considers merchants with no credit, bad credit, histories of bankruptcy and high chargeback ratios on a case by case basis. Rather than decline bad credit merchants on the spot, we take a good look at all the details of the situation and offer game-changing payment solutions backed by individualized support to help turn your business performance around. We’ve been in business since 1993, and are familiar with the telltale signs that portend financial setbacks down the road, so we can help you mitigate risk factors from the get-go to avoid them.

Application Factors

Before you apply for credit card processing services, though, it’s important to make sure that you are satisfying other criteria for a merchant account. Is your business compliant with your industry’s rules and regulations? Have you paid your outstanding bills? Does the bank account associated with your business have a positive balance? These are just a few of the areas you’ll need to clean up before you apply for an account, if you haven’t already. Personal credit also factors in, so if you own the business and have poor credit, but have a partner or associate who has better credit, it will help your chances of approval to have them on board as the primary guarantor.

Merchant service providers care so much about bad credit because it’s a strong business performance indicator and they’re essentially signing on as your primary guarantor if you owe card-issuing banks and credit card networks money lost from excessive chargebacks, fraud, etc., and don’t have it. For example, customers can file chargebacks up to six months after a purchase, and that time varies depending on the brand of credit card used. Some allow chargeback claims for up to a year after a purchase. If a business closes their merchant account, then gets charged back, the merchant service provider has to foot the bill and then seek the funds from the merchant, who might not be able, or willing, to pay.

Ecommerce businesses are considered even higher risk because they’re not necessarily tied to a physical location, so can essentially “disappear” without a trace, making it virtually impossible for the account provider to recover funds. Additionally, credit card companies can fine merchant account providers if their clients exceed a certain monthly chargeback ratio. So there’s a lot on the line when it comes to approving bad credit applicants. That’s why our bad credit merchant accounts are custom-designed to protect your business and, in turn, our investment in it.

How We Can Help

According to, about one third of Americans have bad credit (with 601 being the FICO line between fair and poor credit). It’s a common shortcoming for business owners, so finding a merchant account might not be as difficult as some expect. The real challenge is sifting through the hundreds of high-risk providers who will take your business. You’ll want to make sure the provider you’re considering is on the Visa Global Registry of Service Providers and that they offer you up-to-date, quality products and services at a fair rate.

Our leading-edge products and services will allow your business to accept credit, debit, gift cards and ACH transfers, whether you operate online, over the phone, in store or a combination of the three. Our low rate guarantee means that we will beat the rate of any verified provider—and show you how during a free consultation, with a side-by-side comparison of your current processing statement and our proposal. Startup-friendly options are available, and we also approve MATCH List/TMF merchants on an individual basis.