and fraud checks as part of the application
Please note that credit checks are only done at the
end once we receive all the documents back from you and we know we can
help. We don't want to be affecting peoples credit scores unnecessarily.
here for more information on the checks preformed as part of the application
Why do I get credit checked when I'm not taking out credit
Merchants typically collect payment in advance of
providing the product or service as well as providing some sort of quality
assurance (e.g. will be delivered, can be returned, satisfaction guarantee,
etc.). Therefore, the risk born by an acquirer is similar to providing
a line of credit. If a merchant acts poorly and the business can't or
won't remedy the situation, the merchant account provider is then liable
for all the chargebacks and losses.
My credit rating isn't the best. Can you still help?
In most cases, yes. However, this does depend on what type of credit
history it is. Please note that if you were a director of a business that
went into administration, or you had your merchant facility terminated
(TMF) this makes it much harder (but not always impossible) to help. Therefore
you may be offered a different account - such as a high risk one - or
offered different terms.
Business credit history check
Unfortunately we often come across cases where a director of a
company, who has bad credit, will start a new company without settling
old debts in the hope of acquiring merchant status (known as a Phoenix
company). Even though limited companies have limited liability,
we will still need to check the credit history of the business and
also each partner.
Personal credit history check
If you have certain on-going credit issues or have even come out
of bankruptcy, we can often still help. It all depends on how many
defaults you have, how old they are, how far apart they are, how
much you owe and if they have been settled. If, however, you have
more than one CCJ and /or an IVA in place, we unfortunately can
Depending on credit history (and business type), following a full risk
assessment of an application, in order to increase the merchant's chance
of obtaining a facility with one of our sponsor banks, we may sometimes
increase two specific elements:
1. the settlement period and / or
2. the rolling reserve
Indeed a longer settlement period and a larger rolling reserve are more
likely to reassure our processing bank that we have taken sufficient steps
to mitigate the risk exposure on an account.
As you can imagine we are unable to tell who will have
their settlement period and rolling reserve increased until an application
has been put in and is being processed. Please be reassured that you are
under no obligation to continue with the application
if the new terms offered no longer meet your requirements. If this is
the case than simply reply to the relevant email and your application
will be terminated.