I need a merchant account with a U.S. bank.

I do not have a credit history, it seems to be a problem

[janny93]

Hello,
I am trying to open merchant account through bank. Right now, my website is operating with Cardservice, but I would like to switch to the merchant account provided by any american bank. However, I am in the business for long time, but I do not owe a credit card, so I dont have any credit history. I seems to be big problem :-( I apply for the account with US Bank and I was rejected, because no credit history. I offered them, that they can keep one week of my sales as deposit, instead of depositing my account the next day, i would even agreed with 5% rolling reserve for 6 months.
I need to go with bank, because my business is growing every month about 50 % and I need to have no limit on sale volume and also better rates and fees.
Please, write me your experiences and if there is any bank with different policies.
Thanks a lot

[lorax]

My initial thought is to go ahead and get a credit card. They're usually more than happy to give you one if you can prove your paycheck is good. Go buy something on the credit card and then pay the monthly payments - do not just pay it off entirely. This will establish that you can make payments. Then try to get another merchant account with the bank of your choice.

As to what bank to try? I've heard good things about Wells Fargo but I've never used them. And I have no idea what their policy is in dealing with a foreign company (if you this fits you).

[iamlost]

Many foreign (to the USA) banks have branches in the US. Make a list of your country's banks and see if any show up with a US office.

Also if an American based bank has an office in your country opening an account there may serve the same purpose.

At the least talk with your current banker and ask for their advice - there may be other avenues I haven't mentioned.

[alika]

Banks look for credit history when approving applications for merchant accounts. If you have none, your best bet would be to go to the bank where you already have a relationship -- especially if you have large deposits in the bank. Otherwise, it will be really hard to get one.

[lgn1]

What country are you from. In Canada you can get a US dollar credit card machine and a US dollar account from most major Canadian Banks.

[janny93]

I am in the US. Does somebody know how long does it take to establish credit history by paying off your debts from the credit card?

[Corey Bryant]

You are always going to have a limit. This protects the processor.

If you are hitting that limit, all you have to do is call your agent or CSI and ask them to raise the limit. If you have been with them for more than six month, contact your agent & ask him about reducing your discount rate. If you are selling $100,000 a month, he should not have any problem getting that reduced down to something like 2.2% or maybe even less.

-Corey

[alika]

If you are in the US and you have a credit card, most likely you have a credit history (but check with your credit card provider if they submit to the credit bureaus). What I think your real problem is -- that you have a less-than-satisfactory credit history.

Banks when giving merchant accounts are looking for good personal credit histories. Alas, a poor credit history cannot be repaired overnight. A poor credit history can haunt you for seven years -- and for 10 years in the case of tax liens and Chapter 7 and 11 bankruptcies. If your credit history is less than perfect, it may be worth a shot to include a note in your merchant application explaining what you’ve done to rectify some of the black marks in your credit history (e.g. repaying the debts, etc.)

[fiu88]

Try Valisinternational

[justgowithit]

Corey hit the nail on the head. Every processor will limit your processing volume. It's easier to request an increase from your current processor than to get a new account. CSI has processing history with you and will be able to conduct a factual review your account. If your chargeback ratio is acceptable and you have no other issues they should be able to raise your limit. Also, no credit = no merchant account. CSI is probably a good fit for you.

Processing rates are going to creep up over time; it's not a CSI conspiracy - that's just the way all merchant services are. Use your volume to bargain for better rates – it’s a lot easier than switching providers.

Side Note: If you're a new(er) online business CSI is probably a good processor for you to be with anyway. They're known to be a little more tolerant to higher-risk businesses. You’ll have less chance of holds and hassles with them than a lower-risk processor. That alone is usually worth the 2 or 3 percentage points you may save with another processor.

[janny93]

thanks for all replies!
Alika, I have seen my credit report today and I do have none credit history. I do not have anything negative. I will try to establish credit history now. I took a secure loan today for 12 months. So it is should help... but it will take some time.