topic Re: Need a credit card and payment processor in Credit Cards

Need a credit card and payment processor

vizon — Fri, 03 Feb 2012 02:44:51 GMT

Long story short my credit had 2 charge offs and a collection that I was no liable for. I own a small business, signed up for a program to accept credit cards and was denied. They did a hard pull TWICE. The irony, 2 weeks later all 3 accounts have since been deleted and are reflected on my new credit report.

So now, I have a generally good credit score. There are two 30 days lates 1.5 years ago, and that is it. ALL I HAVE are two credit cards. Both have $0 balances.

So now, I do not know if I should re apply for the payment processor as that would be a 3rd hard pull from them in a month. Ridiculous, I am trying to figure out how to get around this one.

Last, I want a Chase Freedom CC. I am going to be purchasing a vehicle this Spring/Summer and I think it would be best to apply now. I want a new card to build up and get the rewards. How bad will these things affect my credit?

Also, after getting an auto loan, does ones credit score drop dramatically?

Re: Need a credit card and payment processor

bichonmom — Fri, 03 Feb 2012 03:12:41 GMT

I'd app for the cc first, tho you could always explain the inq in a recon. Then I'd call the merchant co and see if they'd be willing to do a SP. if not, then you don't have much of a choice. Though, I'd also see if they might be able to remove one of the HPs. Did they give you a reason for 2 HPs? It's tough to get them off, but worth a try.

Re: Need a credit card and payment processor

bostonte — Fri, 03 Feb 2012 04:07:28 GMT

Are you sure those were the only problems?

Two charge offs and a collection shouldn't have precluded a merchant processing approval.

Have you verified that was the reason for the denial? Or did you just assume?

You aren't in the TMF, are you?

Re: Need a credit card and payment processor

Anonymous — Fri, 03 Feb 2012 04:35:47 GMT

@vizon wrote:
Long story short my credit had 2 charge offs and a collection that I was no liable for. I own a small business, signed up for a program to accept credit cards and was denied. They did a hard pull TWICE. The irony, 2 weeks later all 3 accounts have since been deleted and are reflected on my new credit report.

So now, I have a generally good credit score. There are two 30 days lates 1.5 years ago, and that is it. ALL I HAVE are two credit cards. Both have $0 balances.

So now, I do not know if I should re apply for the payment processor as that would be a 3rd hard pull from them in a month. Ridiculous, I am trying to figure out how to get around this one.

Last, I want a Chase Freedom CC. I am going to be purchasing a vehicle this Spring/Summer and I think it would be best to apply now. I want a new card to build up and get the rewards. How bad will these things affect my credit?

Also, after getting an auto loan, does ones credit score drop dramatically?

What kind of small business do you have and what merchant processor did you apply with?

Re: Need a credit card and payment processor

vizon — Fri, 03 Feb 2012 04:39:25 GMT

My account manager told me the only reason for denial was credit reasons. I was approved for a merchant account that holds 30% of our money for each quarter. We really cannot profit that way and receiving only 70% for that long isn't an option.

I do not know what TMF is. But, I was denied access to the stricter group because of my credit failing requirement.

Re: Need a credit card and payment processor

Creditdreamer — Fri, 03 Feb 2012 04:45:23 GMT

Don't know who you applied with for that service but Square is awesome and very easy to use.

Re: Need a credit card and payment processor

pipeguy — Fri, 03 Feb 2012 04:56:29 GMT

I closed my business several years ago, so I'm not 100% up to date on current terms, but I had merchant accounts with MC/V and AE for over 20 years. There are many options today for merchant accounts. You can try local banks, most offer merchant accounts as long as you use them for a business checking account. I believe Costco offers merchant accounts for small business and I think you can run MC/V and AE through a PayPal based Merchant account.

There are other online options that include "shopping carts" with local charge options. I used JAC http://www.justaddcommerce.com/Home.html for my online sales - they can set up a merchant processing account. There are many other shopping carts online and in-store on screen that allow for direct processing through your merchant account. Depending on your type of business, MC/V/AE offer on screen direct charging and end of day batch processing which can also issue invoices, etc.

Keep in mind that a MC/V merchant account is easier to get than an AmEx and I would think Discover is not hard to get (like MC/V). To start, you'll probably pay more in fees, set up and discount rates (per sale percentage), but with a bit of history in business, you can re-bid your rates. I have never heard of any merchant account "holding" 30% of your sales as security, frankly I would never put up with any merchant account that required a hold of my money.

I think you need to talk to a different "sales rep".

Re: Need a credit card and payment processor

vizon — Fri, 03 Feb 2012 06:07:49 GMT

I applied with paypal. Their regular rates are 2.9% + 30 cent transaction fee. No setup fees, and only a $5 monthly charge. I am a paypal advantage member (meaning we do such a high volume) I get top tier customer support. Basically all the horror stories you hear about them, I get the polar opposite. Seriously, the best customer service of ANYTHING I have ever experienced. Then again, you have to earn your way into the program.

I would like to stay with them, plus our shopping cart is Magento (a product of eBay) and PayPal is owned by eBay. It all falls together so nicely and seamlessly.

The only other option would be a Authorize.net reseller but they all want yearly fees + have higher per transaction fees.

[Edited to remove a link to a personal business website, the posting of which is not permitted by the FICO Forums Terms of Service.]

Re: Need a credit card and payment processor

Anonymous — Fri, 03 Feb 2012 06:08:11 GMT

@vizon wrote:
I applied with paypal. Their regular rates are 2.9% + 30 cent transaction fee. No setup fees, and only a $5 monthly charge. I am a paypal advantage member (meaning we do such a high volume) I get top tier customer support. Basically all the horror stories you hear about them, I get the polar opposite. Seriously, the best customer service of ANYTHING I have ever experienced. Then again, you have to earn your way into the program.

I would like to stay with them, plus our shopping cart is Magento (a product of eBay) and PayPal is owned by eBay. It all falls together so nicely and seamlessly.

The only other option would be a Authorize.net reseller but they all want yearly fees + have higher per transaction fees.

[Edited to remove a link to a personal business website, the posting of which is not permitted by the FICO Forums Terms of Service.]

Thanks for sharing but why switch if you are happy with Paypal's merchant processing setup? Btw cool looking site...like the layout. Something I noticed that is lacking is the social aspect (facebook, twitter, google+)

Re: Need a credit card and payment processor

pipeguy — Fri, 03 Feb 2012 06:08:39 GMT

[Edited to remove a link to a personal business website, the posting of which is not permitted by the FICO Forums Terms of Service.]

Are you an online business only? If so, the classic B&M merchant account is not what you need and that is probably why your "sales rep" offered such bad terms. Traditional merchant accounts do not look kindly on internet only "businesses" due to higher charge backs, lower average sales, higher fraud rates and greater chance of business failure. If you are online only, credit card processing through PayPal Merchant Services is all you need, in my opinion.

Re: Need a credit card and payment processor

vizon — Fri, 03 Feb 2012 14:54:09 GMT

Because, PayPal is for payments, but we have a seperate PayPal merchant services account that wants to retain 30% of our sales for 4 months... let me put it this way.

-PayPal account for main company (other funds for other businesses) - We get money 100% right away

---PayPal merchant account for Mod Cut- because this processes cards, they hold 30% of funds 90 days

The PayPal account for Mod Cut processes credit cards. In return it wants to retain 30% of all fee's.. even transactions WITHOUT credit cards. So we are not using it right now, its not worth it to me. I am trying to get my rates into the PayPal Advanced program which is the exact same as I listed in the above post without the 30% reserve fee. (The reserve is because of my credit issue, that was cleared up.)The merchant services account is a child account under the main parent account. Our main account deals with other finances of my business etc. The child account would be for Mod Cut only and cash out into the parent account at the end of the day.

Because customer service is COMPLETELY different at merchant services, I must call the same sales lady anytime I need anything. SHE IS AWFUL and never returns calls, etc. Since I have the Advantage support team on the parent account I am going to try and have them pull some strings and connect me with someone who can help (the advantage support team will literally do anything and can make anything happen, but they DO NOT do merchant services).

I just dont want a 3rd hardpull in a months time.

As for social networking, you are correct. I am a one man team here, so everything is done by me. I did the full website (I do web development) and have been investing my time in the new site which is coming soon. That is on the to do list. Keep in mind I only launched Mod Cut independent website this past November. Its only like 3 monhts old.

Thanks so much for the advice everyone. Here is what I am going to do: next week, when my credit report updates, apply for a Chase Freedom. THEN I will do another hard for PayPal IF I MUST.

As for the car situation, when taking out a car loan how much will my credit score go down? I am right around a dozen points from 700 and I am assuming this has to do with only 3 years of credit history on my report. Like I said there are 2 30 days lates which will be 2 years old soon. Everything else is perfect. Maybe an auto loan would even help?

Re: Need a credit card and payment processor

pipeguy — Fri, 03 Feb 2012 06:41:16 GMT

Ah okay, it's PayPal that wants to hold 30% - doesn't surprise me. Like I said, I would not put up with anyone holding 30% of my funds for any period of time other than normal processing times (AmEx has programs that hold 7 days at a lower rate or 2 days, that kind of thing is ok IMO). I'd look into various shopping cart programs that link to online merchant accounts or look into direct merchant accounts through Costco (I think they still offer them). Use PayPal as a usual payment option, but forget their Mega-Merchant (whatever it is) with their 30 percent hold.

I've heard a lot of horror stories about PayPal doing 30 day holds for no reason and always giving refunds even if someone returns an empty box. Of course if you are just trying to get your foot in the door to start taking cards until you can upgrade your merchant accounts later, then any port in a storm, go with whoever you can get ASAP.