US Business Finance Corp.

Finance Resources

Accepting Credit Cards Expands Business

Credit card purchases account for most retail sales - accepting credit cards is a business opportunity. US Business Finance Corp places all types of accounts: retail, mail order, telephone order, Internet, or government.

Apply For Merchant Account

Apply for a merchant credit card processing service account with US Business Finance - we help business owners with low risk to high risk accounts.

Alternative Financing for New Businesses

US Business Finance specializes in helping new business accounts quickly raise capital with cash advances.

Merchant Credit Card Application Form - Download & Fax

Credit card purchases account for most small business and retail sales. Accepting credit cards is a business opportunity to allow more orders and larger orders than a buyer's monthly budget allows. US Business Finance Corp has years of experience helping business owners apply for merchant credit card accounts and placing all types of accounts: retail, mail order, telephone order, Internet, or government with various financial institutions.

download pdf application

Fax Application to 1-303-688-8842

Expert Help in Your Merchant Account Application

Securing your merchant credit card account is one of your best financial business moves. The experienced US Business Finance Corp team can help you each step of the way to obtaining your merchant VISA/MasterCard processing service. Our experts guide you in the necessary steps to take as well as help you steer clear of pitfalls in the merchant account process. If you have any questions, please contact us at your earliest convenience.

Credit Card Processors

Ninety-five percent of all merchant business owners who wish to accept credit cards for their products and services will enter into a contract with a credit card processor. This third party processor provides all the services necessary to allow a merchant to accept credit card payments in their day-to-day business, including processing equipment. Credit card transactions are managed by credit card processors.

Depending on their specific business situation, most small businesses can pick and choose the credit card processors with whom they will work. Credit card processors all have different rates, package deals, or other perks that you will want to review and compare before you make a decision. Since the majority of payments made to a business owner are through the use of credit cards, choosing a processor should be taken very seriously.

How does process work?

Currently there are several hundred credit card processor throughout the country. This provides connectivity between you the merchant through a small piece of hardware known as a terminal or Point-of-Sales equipment (POS). This equipment communicates with several different computers to determine if the card holder has enough credit on their card to accommodate the potential sales transaction.

Each time a person swipes a credit or debit card to pay for a meal, buy clothing, or to handle the costs of any range of services, a series of events occurs:

  1. Initially, the transaction is sent to the processor via a secure channel.
  2. From the processor, the data is sent to a bank where the transaction is approved and the money is then sent to the processor, who sends it (minus any applicable fees) to the merchant.
  3. The transaction is then shown as a debt to the balance or limit on the customer's card.

How does a credit card processor work with a Business Cash Advance organization?

The funding company will review all of the current credit card transactions activity and determine, with the business owner, how much they will need to return back to the funding company to repay for the Advance accepted by the Merchant.

It is also important to note that you can often switch processors if you discover a better deal, or need to make adjustments. Switching your processor may or may not require additional hardware or software, but in most cases, it is very quick and easy to accommodate.

We work with several leading credit card processors to provide the level of service and competitive rates our customers demand. Through our unique funding products and our processor relationships, we are able to provide the working capital many small business owners need to be competitive.

Evaluating Risk Criteria of Merchant Credit Card Accounts

Applying for a merchant credit card processing service account is essentially the same as applying for an unsecured credit line. Because of this, a merchant account is subject to underwriting. Underwriting is essentially the process by which financial institutions evaluate the risk posed by a particular merchant, determine whether they will assume that risk, and if so, at what rate. The theory behind underwriting accounts is actually fairly simple to understand. Knowing the levels of risk that underwriters position businesses helps merchants understand how financial institutions view their business.

There are three basic levels of risk in underwriting: low, medium, and high risk.

Level 1 - Low Risk Merchant Credit Card Accounts

Low risk swiped transaction accounts are merchant businesses where the client will pay and receive the merchandise or service at the same time. The client signs a receipt and leaves with the merchandise or has the service performed before leaving. Should there be any conflict on price or product, the merchant has the opportunity to resolve the issue before the consumer or patron leaves the store or office. Some examples of low risk accounts are:

  • Restaurants
  • Grocery Stores
  • Department Stores
  • Dry Cleaners
  • Cigar Stores
  • Book Stores
  • CafĂ©'s, and
  • Movie Theaters

In most cases, low risk businesses have small to medium size sales receipts, usually under $100.00. The smaller receipt size lowers risk since it is less likely a consumer will take the time to dispute a smaller transaction. However, fine dining establishments may often have larger tickets, but are still considered low risk because the buyer and merchant will almost always resolve any dispute before the buyer leaves the establishment. Accounts that fall into the low risk category are preferable, and will be approved in nearly every circumstance, unless US Business Finance Corp's underwriting process uncovers a history of fraud or other situation that increases the risk factor.

Level 2 - Medium Risk Merchant Credit Card Accounts

Medium risk swiped transaction accounts are large ticket category merchants. Historically with these transactions, there is a greater chance of consumer dispute after the buyer has paid the merchant. In the case of auto or home repair, there can be significant concerns about potential faulty workmanship, which could cause a dispute and result in a charge back to the merchant. This category also includes stores that are more of a target for fraud, such as computer and appliance stores. US Business Finance Corp employs a higher degree of scrutiny in the underwriting process for these accounts.

Some examples are:

  • Auto Service
  • Furniture Stores
  • Home Repair
  • Carpet Stores
  • Bridal shops
  • Computer Stores
  • Replacement Door/Windows and
  • Appliance Stores

Medium risk merchants represent acceptable businesses to US Business Finance Corporation, but they require additional due diligence in the evaluation process and are more carefully monitored after acceptance. We require medium risk merchants to send additional information, such as return policies, business credit rating and business history. In addition, a site survey might be necessary in order to secure the merchant's credit card account approval.

Level 3 - High Risk Merchant Credit Card Accounts

High risk swiped transaction accounts are businesses that have all the factors of a medium risk business, but may have a higher average sales receipts. Other high risk merchants may have poor credit history or less financial capability. Some examples are:

  • Used car dealers
  • Sales at Seminars
  • Art Dealers
  • Jewelry Stores
  • Weight Loss Centers
  • Travel and Tour Businesses

In order to accept these kinds of accounts, US Business Finance Corporation requires the same level of due diligence as with the medium risk accounts, plus phone interviews with the merchant. The approval process for high risk accounts may take significantly longer and may involve a higher cost to the merchant.

Other considerations regarding evaluation criteria are:
Product liability issues, overspending on impulse purchases, and transactions where payment disputes often arise. On some purchases, the consumer has the right, should they regret a purchase or change their mind about a purchase within a certain number of days, to return the product. A merchant that is subject to these liability and return problems may be evaluated as a medium or high-risk account.

Finally, merchants that operate using "keyed transactions", such as those that result from mail, telephone, and/or Internet orders, may also be required to provide additional information on a case-by-case basis in order to be approved.