Do banks do credit searches on application of an internet merchant account ??

Question

i need an internet merchant account but my credit is really bad am i likely to have trouble ??

Answer 1

I would expect then to at least check you are a legitimate (registered)  business ....

.. if you get refused, there are 'intermediaries' (like PayPal) who will accept Credit Card payments on your behalf (they will charge a fee, of course)

Answer 2

Payment processing providers require merchants to meet specific standards in order to be allowed to apply for a merchant account for their business. Following is a list of the most important requirements. Be advised that merchant account providers have different approval criteria and their requirements may vary. Keep in mind that payment processors want your business and that your credit history might not be as bad as you think it is.

1. Credit History. A review of the business' financial performance will almost certainly be done during the application process. A typical request a card processing company will make is to see the business' financial statements for the latest two years. The organization's principals will also be scrutinized and they are usually required to provide their tax returns for the latest two years. The business' Dunn & Bradstreet credit file will most likely be reviewed, as well as the principals' personal credit files. Personal bankruptcies are taken into account when the decision is made.

2. Business Type. Applicants for payment processing services will be asked to describe, in details, the type of product or service they are selling and for relevant marketing materials. The type of product or service offered and the way it is sold, are the two most important factors in determining the processing rates that the applicant will get. Generally transactions of high-ticket items and merchandise sold online or over the phone are processed at the higher rates than smaller-ticket ones sold in a face-to-face environment.

3. Data Security. Merchants are required to take adequate measures to ensure that personal account information is adequately protected. A special emphasis is given to eCommerce businesses. Their websites are checked thoroughly and need to include a Privacy Statement, a Terms and Conditions policy statement and the payment acceptance form needs to be SSL-secured.

Additional requirements that a merchant processing account provider may request include the organization's Articles of Incorporation, its business license (if applicable), a proof of tax-exempt status (for non-profit organizations), etc.