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Merchant account Bad Credit
 

Hi,

I have a pre-07 ebay account that I took over from a friend. I applied for several merchant accounts but got declined by all due to bad credit (foreclosure mainly) and no website. One also said they don't know how I took over someone else's Ebay account without written consent by Paypal?

Has anyone had luck with any merchant accounts with bad credit? I need Authorize.net as the gateway since it's for eBay.

My folks have 800+ credit, can I possibly use them as a cosigner to keep the IRS taxes under my name?

Dabbling with other people's info is always a rough one...was your friend's a personal account or business? You could upgrade it to business and submit documents for your registered business thereby avoiding all the use of your family and personal info...something worth thinking about.

Wait for other forum members to chime in - you will have more opinions and advice going.

It was a personal ebay account and I changed it to business.

Technically, eBay and PayPal accounts CAN be transferred, but you need their consent. So, when you tell a merchant account provider that you took over someone's account without eBay and PayPal's blessing, they are going to see red flags. Add the bad credit to that and it will likely be impossible to get a merchant account to attach to this eBay account. In fact, the questionability of the account alone will probably make it impossible.

One more thought... If you changed it to a business account, you could apply for the merchant account as a business. You would need some form of legal organization (corporation or LLC) and a business bank account. They may also question why your corporation or LLC is brand new and the account is older - but it might be worth a shot.

Either way, you would still be personally responsible for the account and they will still want to run your credit report. If the bad credit is in the past, you can probably qualify, at least with some providers. If the bad credit is current and/or ongoing, then it will be more difficult.

Only issue is that if eB and pp catch you with a transfer without all legal documents in place, you will be suspended/banned - no two ways about it.

You have to operate under the radar with this idea or be straight up with documentation

Re: Merchant account Bad Credit
 

This is tricky

Re: Merchant account Bad Credit
 

What have you tried franklucas? Experience is good to contribute.

Re: Merchant account Bad Credit
 

You can get a merchant acct with bad credit but you will pay much higher fees.

Re: Merchant account Bad Credit
 

I tried 3 or 4 merchant accounts but they all turned me down.

My next step is to set up a partnership with IRS with my dad, open a joint business bank account, and apply for a merchant account with the business name and his credit

Re: Merchant account Bad Credit
 

Yea that's what they told me but it was completely denied, partially due to it being an ebay account

Re: Merchant account Bad Credit
 

Make sure your dad is fully aware - tax reporting, etc. - good that you are serious and diligent with this.

Re: Merchant account Bad Credit
 

Yes he is aware.

Thanks, I think this is the only way. I'm approaching the Paypal $20,000/200 limit so I need to act fast

Re: Merchant account Bad Credit
 

I would stop selling on it and let it rest.

Should have multiple backups running to avoid this issue.

Keep your Dad out of it completely.

Re: Merchant account Bad Credit
 

The idea of multiple stealth accounts and spreading sales is very important for success - rotate sales

Re: Merchant account Bad Credit
 

When applying for a merchant account, underwriting will take many factors into account based on the financial and other supporting documentation you provide in your applicant package. If the only reason you are being declined is because of credit; then you should use a co-signer with good credit... if they are willing to sign for you. The co-signer may have to provide additional financial information including but not limited to personal checking account statements, tax returns, audited financials, etc. and the processor may require other supportive documentation such as an operating agreement, but that depends on business type, business model, billing model, products/services sold, etc...