Best Way to Accept Online Payments with Bad Credit??

12 replies
Hi fellow warriors!

I messed up some years back and ended up with two defaults on my credit file. I know I know...prevention is better than cure but I got really sick and was sick for a long time and so ignored these debts. I'm based in Australia and defaults are listed for 5 years before dropping off your credit file/report.

Anyway the good news is that these two defaults will be both gone by June 2017...so another 7 months from today and they will drop off the report.

My situation is that I'm planning to launch a eCommerce store where I drop ship the goods. I'm new and just starting out but I plan to launch more stores if successful.

So what is the best way for me to accept payments considering that:
1) I have bad credit
2) I'm just starting out?

Is a third party merchant like Paypal the most viable option?

I'm also planning on doing affiliate marketing and so is there any impact on accepting payments for that with bad credit?


Any advice is greatly appreciated!

Thanks
David
#accept #accepting payments #bad #bad credit #bad credit repair #credit #ecommerce advice #online #payments
  • Profile picture of the author pranavd2008
    Yes Paypal is indeed the best option out there...

    There are other options as well like skrill,payza & bitcoin But since you have mentioned that you'll be going into dropshipping business paypal is the best option for it
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  • Profile picture of the author onegoodman
    I don't believe your credit has anything to do with accepting payments. I am accepting credit cards, they didn't mention anything about running your credit. You should be fine with any payment processor
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  • Profile picture of the author namehero
    Personal credit doesn't matter. Go with someone like Stripe.com and as long as you don't get many chargebacks you'll be fine.

    If you want a little big "better" of a solution use Chase Payment Tech of BOA Merchant Services.
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  • Profile picture of the author JohnVianny
    *** [ WHAT THE HELL... ] ****

    Personal credit file or score or whatever HAS ANYTHING in common with ACCEPTING payments.

    You are not askin money, you are acceptin money. So the virtual processor is happy for commissions.
    Even the bank.

    Nothing in common, u can use whatever you want.

    Try Stripe.
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  • Profile picture of the author Kay King
    Direct answers to your question:
    https://www.cardfellow.com/personal-...hant-accounts/

    Using Paypal or similar payment processor wouldn't be a problem - but qualifying for a merchant acct could be. Just starting out - a Business Acct with Paypal should work for you...or Stripe if that is a better match.

    *** [ WHAT THE HELL... ] ****
    Not sure why the exclamation. It was a smart question to ask - good planning to know what your limitations/obstacles might be.
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    • Profile picture of the author David Richie
      Originally Posted by Kay King View Post

      Direct answers to your question:
      https://www.cardfellow.com/personal-...hant-accounts/

      Using Paypal or similar payment processor wouldn't be a problem - but qualifying for a merchant acct could be. Just starting out - a Business Acct with Paypal should work for you...or Stripe if that is a better match.



      Not sure why the exclamation. It was a smart question to ask - good planning to know what your limitations/obstacles might be.
      Thanks Kay. Yes maybe I didn't make it clear enough in my posting.

      I'm talking about getting a merchant account. Whether it be now or down the track.

      The article you have referred me and my research in Google to seems to indicate it could be a problem getting a merchant account with bad credit. Although they seem to mention other merchant account alternatives that might charge you a higher rate. An example of this is Durango Merchant Services.

      Also please note that that I'm based in Australia and considering opening the merchant account in the U.S (as that's where my business would operate). I came across the below article in Google but I'm not sure how old and relevant the article is to 2016.

      How to Obtain a Merchant Account With Bad Credit | Chron.com

      "Overseas Merchant processors
      If you have bad credit, consider opening a merchant processor overseas. Businesses in high-risk industries and those with poor credit tend to open merchant account overseas. Overseas merchant processors typically will not pull credit reports. Be prepared to pay higher startup fees and discount rates."

      "Business Structure
      If you are structured as a Limited Liability Company or a C-corporation with an employer identification number, merchant account processors may pull the business credit and not your personal credit. The merchant processor may check your credit to verify your identity if you own a corporation. Contact the Internal Revenue Service for an employer identification number as it may be a requirement for credit card processing."

      Thanks for all your responses!

      David
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  • Profile picture of the author agmccall
    If you want a merchant account you will need good credit. All those that say you do not are referring to 3rd party processors. If you have decent credit and get a merchant account on your own you will find you are paying much less in fees. If you have it stick with paypal and when you want a merchant account go with paypal payments pro with gateway.

    You could also look into ccbill.com they specialize in providing merchant services to people with blemishes on their credit

    al
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  • Profile picture of the author dave_hermansen
    It is extremely difficult for anyone who is not a U.S. resident to get a U.S. merchant account. They require a U.S. bank to deposit to and you can usually only get one of those if you are in the USA. We have heard of some instances where a large U.S. bank has worldwide branches and people with a very good relationship with their bank's branch managers have managed to get a U.S. bank account at one of these banks set up for them through that branch manager.

    Other than that, your best bet is PayPal, for sure.

    Credit card companies definitely ask for personally identifiable information and run credit checks. This is necessary because people have up to 6 months to initiate a chargeback. They want to make sure the person they are allowing to process orders is in a financial position to be able to afford multiple chargebacks that may come months after the profits from those sales has been spent.
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    • Profile picture of the author David Richie
      Originally Posted by dave_hermansen View Post

      It is extremely difficult for anyone who is not a U.S. resident to get a U.S. merchant account. They require a U.S. bank to deposit to and you can usually only get one of those if you are in the USA. We have heard of some instances where a large U.S. bank has worldwide branches and people with a very good relationship with their bank's branch managers have managed to get a U.S. bank account at one of these banks set up for them through that branch manager.

      Other than that, your best bet is PayPal, for sure.

      Credit card companies definitely ask for personally identifiable information and run credit checks. This is necessary because people have up to 6 months to initiate a chargeback. They want to make sure the person they are allowing to process orders is in a financial position to be able to afford multiple chargebacks that may come months after the profits from those sales has been spent.
      Thanks for your advice Dave. I have seen your website and coaching course. It looks great. But I thought I came across information on your website that tells non U.S residents how to set up bank accounts in the U.S and everything else that is needed to drop ship to customers in the U.S? Is this not the case?

      Thanks
      David
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      • David,

        You have 2 options, and a lot of sub options under each one.
        ...
        These include getting a direct high risk merchant account for accepting international card payments online, or going with a third party processor.
        ...
        Note: Another way is to incorporate in the US (or in any other country with lots of options for high risk merchant accounts), get a US business bank account (or in the country where you intend to incorporate) and have more options when it comes to applying for direct high risk merchant accounts (still high risk because you won't have any processing history as a newly registered business) ...

        >> So, here are your options in more detail:

        A. High Risk Merchant Account Providers for Australian Merchants with Bad Credit

        https://www.cardpaymentoptions.com/c...unt-providers/

        B. Third Party Processors (possible for Australian Merchants with bad credit)

        1. Stripe in Australia

        https://stripe.com/blog/stripe-in-australia
        QUOTE:

        >> Starting today [this post was published in 2014], Australian businesses can instantly start accepting payments from anyone, anywhere in the world.

        >> All you need to bring is your bank account number.

        >> Pricing is simple and predictable: 1.75% + 30c for Australian cards and 2.9% + 30c for international and American Express cards.

        >> Were also bringing our full international currency support with us, allowing Aussie users to charge in 100+ currencies.

        >> Well sort out conversions for you, and transfer funds to your bank account in AUD.

        >> Volume pricing is available for businesses at scaleplease get in touch if you expect to process more than $40,000 a month.

        >> During our beta, we have been delighted to watch Australian businesses build world-class products, including Canva, LIFX, Sitepoint, BlueChilli, and Flightfox.

        /QUOTE

        2. Shopify Payments in Australia

        https://help.shopify.com/manual/paym...opify-payments
        QUOTE:

        >> Shopify Payments is available only to stores in the United States, Puerto Rico, Canada, the United Kingdom, Ireland, and Australia.

        >> Shopify Payments is the simplest way to accept payments online. It eliminates the hassle of setting up a third-party payment gateway and/or merchant account and having to input the credentials into Shopify. Shopify Payments comes fully integrated with your store ...

        >> With Shopify Payments:

        You're automatically set up to accept all major cards as soon as you create your Shopify store.

        Businesses in Canada, the United Kingdom, Ireland, and Australia can accept Visa, MasterCard, and American Express debit and credit cards.

        You can pick your card rate based on your Shopify plan, and you can change plans whenever you want.

        You can track your pending payout balance and payout schedule from the Shopify admin.

        Payments are synced with their orders. This makes it easy to see how much you'll be paid out for an individual order, or charged in payment fees.

        You have the best chance of recovering lost sales from chargebacks using chargeback responsescompiled by Shopify for each affected order.

        When using Shopify Payments in the United States, Canada, the United Kingdom, and Australia, you pay no additional transaction fees above the card rate.

        /QUOTE

        3. PayPal Payflow Gateway in Australia

        https://developer.paypal.com/docs/cl...yflow-gateway/
        QUOTE:

        >> Payflow Gateway is available in Australia For fee structure, contact us

        >> Using the Payflow Gateway APIs, merchants can process debit and credit card payments, PayPal, PayPal Credit, authorizations, captures, and credit voids.

        Use almost any merchant account, bank, and processor, including PayPal.

        Integrate using any one of the many well-known shopping cart solutions that have pre-integrated Payflow.

        Accept all major debit and credit cards supported by their processor, including Visa, MasterCard, American Express, Discover, JCB, and Diners Club. Payflow Gateway also supports L2/L3 purchase cards, prepaid cards, foreign currencies, TeleCheck, and ACH.

        Add Express Checkout and PayPal Credit.

        Completely control and customize the checkout process using APIs.

        Merchants can host checkout pages on their website or let PayPal host the checkout on their secure servers.

        /QUOTE

        C. Getting a Registered US Business & US Bank Account Through Stripe Atlas
        Note: I haven't used them, but I could in the future if needed, though I already used MyCorporation to form a US-based LLC (I'm the non-resident control owner) and a Bank of America business checking account (had to go there and open it with a couple of my US resident partners) ...

        https://stripe.com/atlas
        QUOTE:

        >> With Stripe Atlas, entrepreneurs can easily incorporate a U.S. company, set up a U.S. bank account, and start accepting payments with Stripe.

        >> Its available to developers and entrepreneurs globally.

        >> Incorporate your company - Atlas helps you incorporate a U.S. Delaware company in a couple of days. You just fill out a simple form; we generate the necessary paperwork and handle the rest.

        >> Open a business bank account - Stripe Atlas opens a business bank account for you with Silicon Valley Bank, the worlds leading bank for tech companies. Theres no need to visit a bank branch in person to get set up.

        >> Accept payments with Stripe - We set up a Stripe account that you can use to start accepting payments from customers in 100+ currencies right away. You can take advantage of the complete Stripe product suite, including Connect and Relay.

        >> Get tax and legal guidance - Stripe Atlas entrepreneurs will have access to guidance on U.S. law and taxes from Orrick, the international tech law firm, and PwC, the global accounting firm. Every Atlas entrepreneur will be able to chatfor freewith a professional from PwC.

        /QUOTE

        Hope this helps!
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        • Profile picture of the author David Richie
          Originally Posted by Marx Vergel Melencio View Post

          David,

          You have 2 options, and a lot of sub options under each one.
          ...
          These include getting a direct high risk merchant account for accepting international card payments online, or going with a third party processor.
          ...
          Note: Another way is to incorporate in the US (or in any other country with lots of options for high risk merchant accounts), get a US business bank account (or in the country where you intend to incorporate) and have more options when it comes to applying for direct high risk merchant accounts (still high risk because you won't have any processing history as a newly registered business) ...

          >> So, here are your options in more detail:

          A. High Risk Merchant Account Providers for Australian Merchants with Bad Credit

          https://www.cardpaymentoptions.com/c...unt-providers/

          B. Third Party Processors (possible for Australian Merchants with bad credit)

          1. Stripe in Australia

          https://stripe.com/blog/stripe-in-australia
          QUOTE:

          >> Starting today [this post was published in 2014], Australian businesses can instantly start accepting payments from anyone, anywhere in the world.

          >> All you need to bring is your bank account number.

          >> Pricing is simple and predictable: 1.75% + 30c for Australian cards and 2.9% + 30c for international and American Express cards.

          >> Were also bringing our full international currency support with us, allowing Aussie users to charge in 100+ currencies.

          >> Well sort out conversions for you, and transfer funds to your bank account in AUD.

          >> Volume pricing is available for businesses at scaleplease get in touch if you expect to process more than $40,000 a month.

          >> During our beta, we have been delighted to watch Australian businesses build world-class products, including Canva, LIFX, Sitepoint, BlueChilli, and Flightfox.

          /QUOTE

          2. Shopify Payments in Australia

          https://help.shopify.com/manual/paym...opify-payments
          QUOTE:

          >> Shopify Payments is available only to stores in the United States, Puerto Rico, Canada, the United Kingdom, Ireland, and Australia.

          >> Shopify Payments is the simplest way to accept payments online. It eliminates the hassle of setting up a third-party payment gateway and/or merchant account and having to input the credentials into Shopify. Shopify Payments comes fully integrated with your store ...

          >> With Shopify Payments:

          You're automatically set up to accept all major cards as soon as you create your Shopify store.

          Businesses in Canada, the United Kingdom, Ireland, and Australia can accept Visa, MasterCard, and American Express debit and credit cards.

          You can pick your card rate based on your Shopify plan, and you can change plans whenever you want.

          You can track your pending payout balance and payout schedule from the Shopify admin.

          Payments are synced with their orders. This makes it easy to see how much you'll be paid out for an individual order, or charged in payment fees.

          You have the best chance of recovering lost sales from chargebacks using chargeback responsescompiled by Shopify for each affected order.

          When using Shopify Payments in the United States, Canada, the United Kingdom, and Australia, you pay no additional transaction fees above the card rate.

          /QUOTE

          3. PayPal Payflow Gateway in Australia

          https://developer.paypal.com/docs/cl...yflow-gateway/
          QUOTE:

          >> Payflow Gateway is available in Australia For fee structure, contact us

          >> Using the Payflow Gateway APIs, merchants can process debit and credit card payments, PayPal, PayPal Credit, authorizations, captures, and credit voids.

          Use almost any merchant account, bank, and processor, including PayPal.

          Integrate using any one of the many well-known shopping cart solutions that have pre-integrated Payflow.

          Accept all major debit and credit cards supported by their processor, including Visa, MasterCard, American Express, Discover, JCB, and Diners Club. Payflow Gateway also supports L2/L3 purchase cards, prepaid cards, foreign currencies, TeleCheck, and ACH.

          Add Express Checkout and PayPal Credit.

          Completely control and customize the checkout process using APIs.

          Merchants can host checkout pages on their website or let PayPal host the checkout on their secure servers.

          /QUOTE

          C. Getting a Registered US Business & US Bank Account Through Stripe Atlas
          Note: I haven't used them, but I could in the future if needed, though I already used MyCorporation to form a US-based LLC (I'm the non-resident control owner) and a Bank of America business checking account (had to go there and open it with a couple of my US resident partners) ...

          https://stripe.com/atlas
          QUOTE:

          >> With Stripe Atlas, entrepreneurs can easily incorporate a U.S. company, set up a U.S. bank account, and start accepting payments with Stripe.

          >> Its available to developers and entrepreneurs globally.

          >> Incorporate your company - Atlas helps you incorporate a U.S. Delaware company in a couple of days. You just fill out a simple form; we generate the necessary paperwork and handle the rest.

          >> Open a business bank account - Stripe Atlas opens a business bank account for you with Silicon Valley Bank, the worlds leading bank for tech companies. Theres no need to visit a bank branch in person to get set up.

          >> Accept payments with Stripe - We set up a Stripe account that you can use to start accepting payments from customers in 100+ currencies right away. You can take advantage of the complete Stripe product suite, including Connect and Relay.

          >> Get tax and legal guidance - Stripe Atlas entrepreneurs will have access to guidance on U.S. law and taxes from Orrick, the international tech law firm, and PwC, the global accounting firm. Every Atlas entrepreneur will be able to chatfor freewith a professional from PwC.

          /QUOTE

          Hope this helps!
          Thanks a lot for this Marx! This is incredibly helpful. It's great to know I still have options as I was getting worried about my bad credit. Now I just need to digest this information and decide which route to go. I think I will just go with the KISS principle until my store is successful. So I might just start with paypal!

          Thanks
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  • Profile picture of the author aizaku
    paypal all the way..

    ive heard some horror stories of people getting their accounts frozen but it hasn't happen to me..

    ...yet..

    so far though, im very happy with them

    -Ike Paz
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