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Why Credit Matters
“But I’m not applying for credit. Why should the bank care about my credit score? I just want to accept Visa and MasterCard for my business.”
I have heard this statement countless times from customers who are in the process of applying for a merchant account. But in order to be setup for Credit Card Processing, the bank will consider your personal credit. So this raises the big question…
Why Does Credit Matter?
The bank deposits funds into your business bank account within 24-48 hours after you swipe a credit card. But in reality, the bank is really giving this money to you on a 30 day advance. After you swipe a Visa or Mastercard, it takes the bank up to 30 days to collect the funds from your customer’s bank. So in reality, the bank is extending every merchant up to a 30 day line of credit.
So what minimum credit score is required? The good news is your credit does not need to be perfect. A few bumps in the road, especially in these tough economic times, are certainly understandable.
In short, knowing your personal credit situation will help you be a more knowledgeable consumer when shopping for credit card services.