An underwriter looking at a new high-risk business with no card sales yet asks for other papers in place of processing statements. The usual set is three months of bank statements, which can be the owner’s own statements when the business account is new. The rest of the set is the owner’s ID and credit, a tax ID, a working website and a clear account of what the business sells.
Each provider weighs those papers in its own way, and an account opened on a thin file often starts with lower limits and some money kept back. Whether to apply now or wait a few months comes down to how much of that set a business can already show.
What Does an Underwriter Ask For Without Processing Statements?
Bank Statements in Place of Card History
Bank statements do most of the work that processing statements would do, since they show money coming in and going out over time. PaymentCloud and SoarPay both say they will look at the owner’s personal statements for a new business. eMerchantBroker and SecureGlobalPay ask for three months of bank statements and want processing statements only if the business has them. Some providers keep card history on the list anyway. Finix.com’s high-risk guide tells applicants to have previous processing statements ready [1].
Owner Credit and a Documented Business
With no sales record to read, the underwriter looks more closely at the owner and the plan. SoarPay treats owner credit as a gate. eMerchantBroker asks for ID, a Social Security or employer tax number and a working website. Corepay puts weight on a clearly documented business model, meaning a written account of the product, the customer and the expected volume.
1. PaymentCloud
PaymentCloud suits a new business whose owner has personal banking history even though the company has none. A new business can send three months of the owner’s personal statements instead of company statements.
PaymentCloud places accounts with several partner banks, so its team has more than one bank to match a file with. It says more banks mean better approval odds, and that counts for most when the file is thin.
A new CBD business is the exception. For CBD, PaymentCloud requires three months of processing statements along with lab certificates and a supplier list, and a company with no sales can’t supply the first of those.
PaymentCloud’s prices come only in a quote.
2. Durango Merchant Services
Durango Merchant Services places high-risk accounts for small-business startups, and it doesn’t charge to process an application. Fifth Third Bank carries the account and sets the final terms.
Durango serves the United States along with Canada, the European Union, the United Kingdom and a few other regions, which suits a new business that plans to sell abroad early.
It’s less clear whether Durango takes a business with no processing history at all, so a business with no statements should ask before it applies.
International accounts also carry a $50,000 monthly minimum, a high bar for a company in its first months.
3. Corepay
Corepay [2] is the pick for a new business that can hand over a complete, well-documented file. Strong bank statements and a clear business model can make up for missing processing history there. Corepay reviews the file first and then sends it to the bank for the formal review. Corepay charges nothing to set up and has no monthly minimum.
Corepay is a registered ISO/MSP of North American Banking Company, and that bank makes the final decision.
Corepay now focuses on healthcare, telehealth, med spas and pharmacies, so a business outside healthcare may get less guidance here.
4. eMerchantBroker
eMerchantBroker [3] says outright that it approves merchants with no credit card processing history.
For CBD it asks for ID, three months of bank statements, three months of processing statements if the business has them, a tax number and a working website. There are no upfront setup fees.
A business that wants a rate before applying won’t get one here. eMerchantBroker prices partly on past card history, so a file without any is missing one of the inputs, and there’s no public rate to go on instead.
The bank makes the final call on approval, since eMerchantBroker works as a registered ISO/MSP of BMO Harris Bank.
5. SoarPay
SoarPay suits a new US business whose owner has a credit record. New businesses and startups can get approved there when the owner provides personal bank statements.
An owner without that record should look elsewhere. SoarPay says approval is unlikely with no credit history, a recent bankruptcy or a score below 600. It also serves only US businesses whose owners have a US Social Security number. Its accounts are carried by Commercial Bank of California, for which SoarPay is a registered ISO.
6. Finix
Finix takes on high-risk categories such as hemp-derived CBD, supplements and licensed online gaming, and it signs merchants without a long-term contract or an early termination fee. It sets no volume minimum either.
Finix falls short on the question this list is about. It doesn’t say whether it takes a business with no processing history, so a business with none should ask Finix before applying.
7. SecureGlobalPay
SecureGlobalPay takes startups with no established credit history. It asks for processing statements only if the business has them, along with three months of bank statements, so it fits a business that is short on both card history and credit history.
It’s an ISO that pairs merchants with acquiring banks, so the terms of a first account come from whichever bank takes the file.
What a First Account Usually Carries
A first high-risk account usually starts with a monthly volume limit. PaymentCloud suggests a startup begin at $5,000 or $10,000 a month. SoarPay tells new businesses to ask for $5,000 to $15,000.
Going over that limit has a cost. At PaymentCloud, extra funds may be kept for a short time, and at SoarPay the bank keeps volume over the limit for at least 90 days.
Many first accounts also carry a rolling reserve [4]. The bank keeps back a percentage of each day’s card sales for a fixed period, so money is on hand if chargebacks arrive later [5]. SoarPay puts its usual reserve at 5% to 10% of volume. Not every merchant needs one, and SoarPay reviews reserves every 60 to 90 days.
Most of the picks above are ISOs, so the sponsor bank’s review decides the limit and the reserve.
When Waiting Three Months Beats Applying Now
A business that already has three months of bank statements, an owner with a credit record and a working website with clear policies has most of what these providers ask for, and applying now makes sense. It should still expect the lower limit and the reserve described above for its first few months. A business whose bank account opened recently has less to show. Several providers above ask for three months of statements, so waiting until those months exist gives the underwriter a complete file. The wait is also a chance to finish the website, since a working site with clear policies is on nearly every list above.
References: [1] https://finix.com/, [2] https://corepay.net/, [3] https://emerchantbroker.com/, [4] https://www.businessnewsdaily.com/5037-credit-card-processing-services.html, [5] https://www.uschamber.com/co/run/finance/credit-card-processing-fees-chargebacks