Payment Processing - Personal Bad Credit

[business14]

Hi guys, good afternoon.

Trust you all had a lovely Christmas and are getting ready for the new years celebrations!

I was looking for some advice about obtaining a Merchant account for online payments, I've been developing our online shop for the past 4 months and have put a lot of time and money into it - due to unforeseen circumstances my credit file went from being great, to poor. This has now caused me a problem with my application with Barclaycard, they went through the application, wasn't happy regarding that and declined.

I have a Ltd company and the first accounts are due next month so this may help.

My question is would it help any application if I were to add a director to the company (friend or family) that has a good credit file and then seek a merchant account?

The shop is ready to launch but obviously, this is holding me back

Many thanks

 

[bharris]

If you are totally stuck you can probably still use PayPal. I would recommended having a PayPal payment facility available for your customers regardless of any other payment processing system you find.

 

[arnydnxluk]

Try a more modern card processor such as Stripe or Braintree, you might find they're more lenient on credit checks.

 

[business14]

Thanks, I have stripe for a service business. The only problem with Stripe is the payment clearing times and I've heard anti-fraud is not that great...

I'll have a look at PayPal regardless of their higher fees, eitherway seems like i have no other choice

I was wondering if adding another director with good credit would help?

 

[arnydnxluk]

I was wondering if adding another director with good credit would help?

Is it the company or yourself with a poor credit rating? If the former, adding a director won't help.

 

[business14]

When the company accounts will be submitted, they're relatively healthy for the first year of trading so that could help. Unfortunately, it's me that has the poor credit!

 

[Mr D]

When the company accounts will be submitted, they're relatively healthy for the first year of trading so that could help. Unfortunately, it's me that has the poor credit!

You having poor credit isn't impossible problem.
Your bank aren't keen - there are other companies.

 

[Natasha Bishop]

Banks check on the directors, not on the company (unless it's not in a good standing). Adding another person will not improve your score.

 

[Nochexman]

My question is would it help any application if I were to add a director to the company (friend or family) that has a good credit file and then seek a merchant account?

No, it won't help particularly with a bank.

Getting an internet merchant account is much easier and enables you to build up a favourable trading history that will make it more likely for you to get a bank merchant account later on.

 

[stuartm1962]

We use Nochex,pretty good rates and more likely to help you out. We used Paypal years ago, had a dispute and they held the money for 6 months. They were around double the price of Nochex too. I would apply under the limited company for an account.

 

[SYN]

If you do need instant availability of funds then Stripe isn't perfect but they've definitely improved their fraud detection which they call "Radar" and it works flawlessly.

 

[The Byre]

due to unforeseen circumstances my credit file went from being great, to poor.

What unforeseen circumstances?

 

[HC-Samuel]

What unforeseen circumstances?

Since its his personal credit file he may not want to share that on a public forum

 

[Haindiary]

PayPal is such a system that freezes your money without the possibility of withdrawing it, without explaining the reasons. Simply blokat often not justified. If you write to their support service, they respond with some sort of standard phrases, and no sense. They just take time and nerves from people. And why is it recommended not to withdraw right away, but to leave “always on the page 50-100 $”? So that they block it then? And so they “threw” millions of people. You can imagine how they have already profited. And for people who have frozen accounts, it was probably there not for one $ probably.

And so the system is not bad only for purchases