Best Merchant Accounts for Owners With Bad Credit

Bad Credit Chart
© Depositphotos – Paul Fleet

Bad business credit or poor personal credit scores can be enough of a headache for business owners without the added roadblock of getting rejected for a merchant account due to their credit problems. The unfortunate truth, though, is that many major merchant services providers are hesitant to take on merchants with bad credit, often perceiving them to be too high of a risk for chargebacks and fraud. Credit problems can make starting or running a business very difficult for merchants who don't know how to get a merchant account due to bad credit.

The good news is that some credit card processors specialize in bad credit merchant services, which means that they're willing to take on merchants with low credit scores under certain conditions. In these cases, bad credit merchant accounts are more or less treated as high risk merchant accounts, meaning they may be subject to higher processing fees or more stringent cash reserve policies. Although this may seem like a “last resort” situation for merchants, the truth is that some merchants may benefit from working with processors who are accustomed to supplying merchant services for businesses with low credit scores.

We have compiled a list of the top bad credit merchant account providers below. Most of these providers offer poor credit merchant accounts as an extension of their high risk merchant account programs. As always, the best way to secure competitive rates for your business is to contact a few of the companies below and compare quotes and services.

Our Top-Rated Picks for Bad Credit Payment Processors

eMerchant Broker

eMerchant Broker Logo

eMerchant Broker is a Los Angeles-based e-commerce merchant provider that specializes in high risk processing services, including businesses with poor credit. The company's services include an online payment gateway, ACH processing, merchant cash advance, and a chargeback dispute resolution system that helps merchants challenge chargebacks in a timely and effective manner. The company advertises that it is able to place merchants with poor credit histories, prior bankruptcies, and tax liens out on their businesses.

eMerchantBroker offers custom pricing for each merchant and enjoys a clean complaint record across all third-party review sites. The company currently maintains an 5-rating on and an “A+” with the BBB.

For more information, see the eMerchant Broker website or call (877) 301-3442.


PaymentCloud Logo

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high risk business types. The company's products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. PaymentCloud is a good option for merchants who have poor credit scores.

PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant's business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

For more information, visit the PaymentCloud website or call (888) 506-7859.

Host Merchant Services

Host Merchant Services logo

Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and we gives the company an “5-Stars.”

The company provides a customized pricing option for its bad credit merchant accounts, which means that the terms of each contract will depend on the merchant's specific business type, size, and time in business.

For more information, see the Host Merchant Services Website or call (877) 517-4678.

Bottom Line

For a business owner with bad credit, seeking a merchant account provider can be challenging, but it's not impossible. When looking for a provider, it's essential to focus on finding one that specializes in working with high-risk businesses, has a history of providing reliable services, and offers fair pricing and contract terms. The provider should also be transparent about any fees and charges and provide excellent customer support to help resolve any issues that may arise. Additionally, the business owner should consider working on improving their credit score to increase their chances of getting approved for a merchant account and potentially lower the associated fees and charges. By taking these factors into account and selecting a processor from above, a business owner can find a merchant account provider that meets their needs.

Reader Comments

Tell Us What You Think

1 User Reviews

  • Richardbennett

    It has been very hard for me to get a merchant bank to process my credit card orders from clients. I am in direct marketting industry for over 30 years . I just want to use credit cards to pay for mailing lists we sell.

    It has been gphard everyone says we are high risk.

    We are small, but we treat all,our client s well and have a bpnice following my credit is fair have no bankruptcy, no tax liens etc have a valid corporation with web site ,

    All I want is to be able to take credit cards in payment

    Who is a good company for me to go to and will give me a opportunity to show. Our quality I am even willing to,pay a little more in beginning even set up a cash back account to hold some funds aside etc

    Please can you recommend a few or even a person I can go to, pay a fee, to get me a merchant processor

    Thanks so much
    Richard Bennett [email protected]

Tell Us How They Treated You

Sharing your experience influences our rating and helps other business owners make informed decisions. Promotional content and contact information will not be published. Please provide a detailed summary of your experience.


Copyright © 2024, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.