merchant accounts for bad credit

Best Merchant Accounts for Bad Credit

If you have bad credit, it’s not the end of the world. There are many merchant accounts for bad credit out there that will work with you and give you access to a large selection of payment options. In this article, we’ll take a look at some of these options so that you can decide which one is best for your business needs.

What are Merchant Accounts For Bad Credit?

A merchant account for bad credit is a type of merchant account that can be used by small businesses that have poor personal or business credit scores. The goal of these types of merchant accounts is to help you accept credit card payments, but they don’t always come with the same perks as other types of merchant accounts.

If you’re interested in getting one of these accounts, here are some things to consider:

  • The fees are higher than those associated with other types of the merchant accounts (like ACH). This may make them less attractive if your business doesn’t plan on accepting cards very often.
  • The approval process is more difficult than with other types of merchant accounts. Some providers may not even offer bad credit merchant accounts at all. If you do find one, your application may take longer to process and be subject to additional scrutiny because of the risk associated with this type of account.
  • The card processors that work with bad credit merchant accounts are usually less reliable than those who deal in other types of accounts. They may also have fewer resources at their disposal to help you out if something goes wrong with your account. There’s no guarantee that the provider will continue to offer this service in the future.
  • If you have bad credit, you may have a harder time finding a merchant account than someone with good credit does. The reason for this is that the risk associated with accepting debit cards from customers with bad credit histories is higher.

Best Merchant Accounts For Bad Credit

There are plenty of options for those with bad credit to get a merchant account that processes credit/debit cards. These we have discussed below. Another option is an online payment processor that specializes in working with businesses that have bad credit. This will be a more expensive route but it’s worth the investment if you want to start accepting payments today.

There are also some payment processors that will offer you a free merchant account. These are generally with large banks and credit unions and may have restrictions on what types of businesses can use them.

Payline Data

payline data
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Payline Data is a credit card processing company that helps small businesses get started with credit card processing. It has a free trial period, so you can try out the service before committing to it.

The benefits of using Payline Data include:

  • A simple user interface that’s easy to navigate and understand
  • Free consultations with their team of experts who will help you choose a solution based on your needs, budget and goals

PayPal Pro

setup paypal business account

PayPal Pro is a payment solution for online sellers. It’s the most popular payment solution for online sellers, and it has an annual fee of just $0.30 per month (or $20 annually). There is no credit check therefore this is an excellent option for those who want to start accepting payments with PayPal Pro.

PayPal Pro offers several features that make it easy to get started:

  • No setup fees or monthly fees when starting up your merchant account
  • No minimum order volume requirements or transaction limits
  • No credit check

First American Payment Systems, Inc. (First American)

first american

First American Payment Systems, Inc. (First American) is a subsidiary of First Data Corporation that provides payment processing services to small businesses with bad credit. The company offers an assortment of products and services related to merchant accounts for those who are unable to obtain one on their own.

First American has its roots in the late 19th century when James Dreyfus opened his first location in New York City’s Lower East Side neighborhood with the intention of selling dry goods at affordable prices to working-class families.

Over time, he expanded beyond just selling groceries; he also started offering other services such as savings plans or loans which allowed customers access to money they otherwise wouldn’t have had access to.

Paragon Payment Solutions (Paragon)


Paragon Payment Solutions (Paragon) is a provider of payment processing services. Paragon offers merchant accounts for small businesses, including bad credit customers.

Paragon is a subsidiary of First Data Corporation, which has been in business since 1854 and was founded by one man, who later became president of the company and named it after his hometown—the city of Cincinnati, Ohio.

First Data is a global leader in commerce-enabling technology, serving over 6 million business locations across 100 countries. The company’s core processing network, which includes the STAR Network and Maestro, is one of the largest globally and enables more than $1 trillion in annual transactions. First Data also provides innovative solutions that support digital marketing channels and help businesses better connect with their customers.

Intuit Merchant Services

intuit quickbooks payments review

You can use this account management system to view merchant statements and manage your business’s accounts. You can also set up recurring billing, track sales by product or service, and get email notifications when new transactions are processed. Intuit Merchant Services offers a number of special features for small businesses, including A free card reader that allows you to swipe credit cards right from your smartphone or tablet An app store where you can find apps that help you run your business

Benefits of Intuit.

  • Intuit Merchant Services is a good option for businesses with bad credit.
  • Intuit Merchant Services offers a wide range of payment-processing solutions, including:
    • A standard merchant account with no annual fee
    • A transaction fee that depends on how much you sell (see below)
  • The company also has an online account management system that’s free to use, as well as fraud prevention services.



2Pay is a payment processor that specializes in credit card processing for small businesses. It offers a variety of payment options, including EMV chip technology and recurring billing, so you can easily set up your merchant account and start accepting payments.

The company also has a low monthly fee and no setup costs.


There are many options available for those with bad credit to get a merchant account. You can choose from one of the companies above, or even one of our top recommended providers. If you’re interested in learning more about any of these companies and what they have to offer, feel free to visit their websites!

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