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No Credit Check Merchant Accounts: Your Guide

Some payment processors aren't as strict when it comes to businesses with poor credit  

What is a Merchant Account?

A merchant account is a special type of business bank account that allows you to securely accept credit and debit payments. It acts as a middleman between your business's bank and the bank your customer uses to make their card purchases. 

 

A merchant account is needed to facilitate the movement of money from your customer's bank account to your bank account so, if you want to take electronic payments, you need to get yourself a merchant account.

No Credit Check Merchant Accounts

Merchant accounts come in all kinds of shapes and sizes. Some are designed for small businesses and some for large businesses. Recently, some companies have emerged offering alternatives to conventional merchant accounts, whereby they process your payments and send the money to you without ever using one. Companies like Square and PayPal have dominated this area of the market and have become popular choices amongst small businesses across the country, this is largely due to their simplicity and lack of background checks.  

 

While not merchant accounts in the traditional sense, companies like these do still operate like merchant accounts in that they process your payments and pass them along to you minus a transaction fee. Their lack of credit checks, or commitment to work with as many businesses as possible, makes them viable options for both businesses that are just starting out, and those that have a poor credit history. 

 

Many of the traditional payment processors are likely to turn down applications that come from businesses with a bad credit history so, for these reasons and more, businesses often look to the alternatives available.  

Does Your Business Have Poor Credit?

If your business has a poor credit history, you may be better off looking for a payment processor that won't do a credit check. There are, as you will see below, several providers who are happy to give you a merchant account like this, and choosing the best one for your business is an important decision. 

 

The fees a payment processor charges will be your main consideration, but other factors like ease of use, trustworthiness, and suitability should also be high on your list of considerations. We've chosen just four payment processors for you to explore; these are by no means the best four available, they're just to give you an idea of what's available.

PayPal For Business

Easy to make, easy to manage, and easy for customers to trust.

With PayPal for Business, you're able to connect with millions of PayPal users and give them an easy way to pay. Much like Amazon Pay (which is explored further down this page) Paypal for Business can be integrated with your website's checkout page and allow customers to pay you via PayPal. The takings then go through PayPal's own platform before they're transferred to your bank account. Its wide range of digital payment options, which includes direct card processing, Apple Pay and Google Pay, means your customers can check out in a way that suits them. 

 

Unlike Amazon Pay, PayPal for Business also offers physical ways to pay with its Zettle card reader. So you can take payments both online and in-person with one simple PayPal account. It's easy to create a PayPal business account and equally easy to manage it. PayPal's brand also means people are likely to trust your payment process, so you can retain a strong and trusting relationship with your customers while putting their personal choices at the heart of your checkout process.   

Square

No credit check, no monthly cost, and no start-up fee

Square strives to make things simple for its customers which, by extension, means it makes things simple for yours. With Square, you can take payments in-store using its wireless card reader that supports payments through smartphones as well as credit and debit cards.  The payments are then processed with Square's app and sent to your bank account as soon as the next working day or, for a small fee, instantly. 

 

Its alternative way of taking payments means that, if you use Square, you don't require any form of conventional merchant account. It's great for small businesses who are looking to start taking digital payments without committing to long-term contracts. Square's lack of background checks, no monthly cost, and no start-up fee make it one the simplest, cheapest, and easiest ways for businesses to take electronic payments. If you have a small physical start-up business and want to take card and digital payments, without using a conventional merchant account, Square could be for you.  

Amazon Pay

Website integration that offers an easy way for customers to pay online

Amazon Pay offers your customers the option to pay you using the shipping and payment information that's stored on their Amazon account. Amazon Pay is integrated with your website, making it an easy and secure process for your customers.  The system also supports a broad range of business models, including deferred payments and subscriptions, so your customers have a choice in how they pay. It's easy to set up and Amazon's trustworthiness means your customers will be happy for Amazon to process their payments.  

 

With Amazon being one of the world's biggest brands, there's a reasonable chance that your website users already have what they need to use Amazon Pay, so you can be confident that your customers will be able to use it. This means you don't necessarily need to offer any other payment method, which saves you hassle in the long run. While it offers great integration and ease of use to your customers, Amazon Pay is an online system, so if you do most of your business from a physical shop, it's not for you.  

Nochex

Simpler alternative to more traditional merchant accounts

Nochex offers a simpler alternative to the more traditional merchant accounts. Where a merchant account usually involves a payment gateway and processor, Nochex incorporates all of these into one simple solution. The company considers all the applications it receives and is committed to not declining applications due to a bad credit history. Due to its all-in-one package, you can send invoices, collect subscriptions and accept payment online and over the phone all with one online merchant account. 

 

Setting up is easy too; you can create your merchant account and start taking payments all within one day of sending your application through.  

 

One thing to remember is Nochex doesn't allow you to take payments face-to-face, so they're only really suitable if your business operates solely online. If your business does operate online, and you're looking for a merchant account that covers all bases, then Nochex could offer exactly what you're looking for.  

Find the Merchant Account for You

Now you've read the above, and you know that a bad credit score doesn't mean you can't get a merchant account, it's time to take the next step.

 

Making that next step has never been easier. Just provide us with some basic information about your business, and we can do the hard work for you. We collect some quotes together from various merchant account providers so you can choose the one that best suits you. 

FAQs: Your Questions Answered

Though many merchant accounts are free to set up, they will come with a basic fee that they charge for transactions. This will be a certain percentage of the purchase price and may change depending on the volume of transactions. 

 

The fee a merchant account charges is an important consideration when it comes to choosing the merchant account for you. 

A merchant account is a special type of business bank account that allows you to securely accept credit and debit payments. 

 

A merchant account is needed to facilitate the movement of money from your customer's bank account to your bank account so, if you want to take electronic payments, you need to get yourself a merchant account.

No. While most merchant account providers will do a credit check on your business, some don't have this as a requirement. Though you should do your own research to find the best merchant account for your business, here are some to get you started:

  • PayPal 
  • Nochex
  • Square
  • Amazon Pay

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Our Partners
  • Barclays Bank PLC
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  • FirmEU BV
  • Fiserv (Europe) Limited
  • Handepay Limited
  • ResQ Limited
  • SumUp Payments Limited
  • Take Payments Limited
  • Teya Services Limited
  • The Redwood Group and Associates Limited
  • Tide Platform Limited
  • WorldPay (UK) Limited
  • Yotta Digital Ltd
Our Products
  • Business Accountancy
  • Business Epos Systems
  • Business Telephone Systems
  • Commercial Waste Collection
  • Digital Marketing
  • Fleet Tracking
  • Invoice Finance
  • Merchant Accounts
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