Credit Card Merchant Accounts?
High Risk & Low Risk Merchat Services

Credit Card Merchant Accounts?

Question by DMG: Credit Card Merchant Accounts?
I recently submitted an application for a business credit card merchant account. It is an existing business with an existing merchant account with another company. This new provider wants me to give them my social security number even though the company has its own EIN/tax ID. Why would they want my social? Does this open me up to financial liabilities of the company? I know if they hard pull my credit information, this has a negative impact on my personal credit rating. The other option is to jump through hoops of sending several years tax returns and months of bank statements. What is the best course of action?
We have been in business for almost 7 years so it is not from lack of history.
This is not for a business credit card, it is for a merchant account to process credit cards.

Best answer:

Answer by RIP LUCY
Just give them your social. Sounds like they will approve your application, based upon your credit. One inquiry isn’t that harmfull and this way is way easier.

Know better? Leave your own answer in the comments!

Comment (4)

  • They want your SSN because they consider your business history to short. The decision to issue your company credit will be dependent on YOUR credit history. If it is good you get the account if questionable you will not. YOU are financially liable unless you have consulted and Atty and formed the proper business entity to protect your personal assets.

  • mangokdkat - February 14, 2014

    Most business credit cards will be secured or at least rated against your personal credit, especially if the business has inadequate credit history for the credit card company to make a judgement on.

    They *may* ask you to secure the card personally, in the event that the business closes, you can be held liable personally for any debt incurred by the business. Some loans will require you to do this, to prevent you making money in the business, pulling it out, then declaring the business bankrupt when there is unpaid debt.

    It’s up to you as to what you want to do; it’s a business decision like any other.

  • helpmerchants - February 14, 2014

    It’s up to you whether you want to get all the history statements instead of 9 digits. The reason they want a social is because there is a “Personal Guarantee” attached to every merchant account being set-up domestically.

    It is a risk for a bank to open an account, or for a processor to open a merchant account. In other words, the bank risks losing money. If the business closes or moves unexpectedly, they want to have someone on file to hold accountable for any chargeback or other amount owed.

    Typically, cc companies ask the majority owner of the company to sign the merchant account application.

    Lastly, lease or buy your equipment and find a processor you can trust.

  • When a merchant applies for a merchant account, there are a number of documents that he or she will have to submit. Whether your business is new or an existing one, the application process is the same.

    As far as credit history is concerned, a review of the business’ financial performance will almost certainly be done during the application process. A typical request a card processing company will make is to see the business’ financial statements for the latest two years. The organization’s principals will also be scrutinized and they are usually required to provide their tax returns for the latest two years. If not satisfied by the information in the tax returns, the merchant services provider will pull their credit files. Either way, SSN must be provided. You need to understand that banks view a merchant account as a form of a line of credit and the application process is designed accordingly.