Is credit a factor in determining whether or not an application for merchant services will be approved?
Yes. Opening a merchant account is often compared to taking out an open-end line of credit. Once transactions are processed, and the business account has received credit for the proceeds from the sale, the funds are available to the business owner for use. A cardholder has the right to dispute a transaction that has posted to his or her account. If a dispute results in a chargeback to the merchant, the merchants account will be debited for the chargeback. In order to determine whether or not a merchant will have funds available to cover potential chargebacks, a credit check is required.
Related Questions
- When applying for a credit application for gas services, do I need to fill in the credit card information? If I include the credit card information does that mean I won receive a bill?
- When is time a factor in determining the coding level of the usual evaluation and management services (new and established patient office visits, consultations and hospital follow-ups)?
- Is credit a factor in determining whether or not an application for merchant services will be approved?
