Apply for merchant account service to help your credit. If you want to run an online business, then you are going to have to apply for merchant account services. Your personal credit, your business credit, and the type of product you are selling all affect what kind of merchant account you may get approved for. If you have poor credit or you sell a product that concerns the merchant services vendor, then you may be directed to a high risk merchant account. A high risk merchant account is going to be more restrictive than a standard account. Some are going to more restrictive than others, so you will want to explore a variety of companies if you need this kind of account.
One of the most common restrictions on a high risk account is being denied immediate access to your funds. Most high risk accounts will have a holding period before they release funds from a sale to you. This hold helps protect the merchant services provider from losses, and it also helps to protect you too because if you can't pay back the provider for a transaction gone wrong it can lead to major problems. If you apply for merchant account services and you are told you need a high risk account, then you are going to need to run your business in a way that works around its restrictions. "Many new business owners end up with a high risk merchant services account, but if you take this as a learning experience instead of a penalty you will set your business up for success."
As long as you are willing to take reasonable steps to work around the restrictions of a high risk merchant account, there is no reason to fear that it is going to hurt your business. You will need to take steps so that the lack of immediately available funds after a sale isn't going to inhibit your business. This usually means having money set aside for shipping the product and other needs so that you can handle those things before the funds clear.
After you have been in business for a while, you can always try to apply for merchant account services with less restriction. Most companies will be willing to work with you if you prove yourself trustworthy. If you focus on good business practices now, you will likely reap the rewards later. Many people start out with high risk accounts, so there is no need to feel singled out. Online businesses have become a popular idea, and not everyone who tries to start one has the knowledge and skills for it. High risk accounts are just a way merchant services providers try to protect themselves from inexperienced business owners.
