There are millions of United States residents that do not have a social security number. Of those millions, many of them own their own businesses. Can these business owners get a merchant account without ssn? With most credit card processors, probably not, but there are execptions.
Business owners that don’t have a social security number can open up a bank account, get a driver’s license, and get a business license. When it comes to getting a merchant account without social security number, it seems like an impossible task. Why all the fuss? It all comes down to two words: Risk Tolerance.
When you apply for a new personal credit card, issuing banks will check your personal credit score in order to determine if you’re a good candidate for the card. They will evaluate your credit history, credit usage and a few other things to decide if they’ll issue you a new line of credit. (Check out our friends at Credit Knocks if you need to improve your credit score. A better credit score makes it easier to get a merchant account, and they’ll show you the way.)
Many merchant processing companies have a pre-determined algorithm stating that each business is worth a set amount of money to their company. To the processor, the reward (money you pay them to accept payments) has to be worth the risk. If they decide to give a merchant account without ssn to a business owner, they may ask them to pay extra upfront or double their processing fees. It’s all about risk mitigation. They may ask for a long term contract and add in extra annual fees to make the account more valuable.
Here at Shift Processing, we don’t believe that a merchant account without ssn should cost any more than a business that has a social security number. So, what do you need to set up an account without a social security number? Here are the details to help you get started.
Make sure when you look at the many options that are available for your business, you ask these simple questions. Am I paying more for a merchant account without ssn than someone who has a social security number? Are they making me sign up for a long term contract? Do I have to pay extra fees upfront? If you don’t like the answer you receive, you’re most likely working with the wrong processing partner.