Having bad credit is common in the current market. However, navigating this economy with a bad credit is not the most ideal option anymore. To improve their credit history and over-come financial difficulty, consumers then seek credit repair companies.
Credit Repair Industry is often referred to as a ‘Disputed’ industry. Most credit repair businesses accept payments through online transactions rather than in-person which lead to a high probability of theft and frauds. Also, by taking on the responsibility of cleaning a client’s bad credit history, the company itself is at risk of the client defaulting on payments again. Reasons such as these have caused financial institutions to label the industry as high-risk.
Looking for a Merchant Account Provider for your Credit Repair business?
Similar to various other businesses categorized under high-risks, a major reason banks decline to take on the risk that comes with any credit repair related business, are excessive chargebacks.
Hence despite of being an efficient billion-dollar industry, most financial institutions refuse to process payments for these companies.
As one of the fastest growing industries, the ability to accept credit cards has become an absolute requirement for this business. But obtaining a merchant account for processing credit cards is a difficult task.
If you are a credit repair merchant you will find banks and merchant account providers reluctant to accept your application for a merchant account. As mentioned, high chargebacks and high processing volumes prove to be a deterrent for traditional banks and institutions.
While some providers may outright deny you at first glance, others may put you through a lengthy and complicated process for weeks at times, with no guarantee of an approval.
High Risk Merchant Account Solutions for Credit Repair
With the industry being labeled as high-risk, High Risk Merchant Account providers are an ideal solution for credit repair businesses.
Of course you can always go with basic merchant account processors that are willing to take on your business. But you need to be careful in such cases since there is a chance they may offer limited solutions not entirely suited for your business or provide spotty service or straight-out decline your application after a tedious application process.
– Opting for high risk merchant account provider is beneficial because they evaluate and understand the associated risks and challenges that come with the high risk tag.
– Look for a reputable merchant account provider that has previously worked with businesses related to your industry. These providers will know your requirements and offer you the right solutions. They are also well-prepared for any challenges you may face.
– While applying for a merchant account, always be honest about the details of your business. It will prompt the merchant account provider to be upfront about any extra costs or other factors related to your business. You may get approved by being vague during the application process but there is a serious risk of your account getting terminated if the provider finds any discrepancies later on.
Although it is an uphill task, as long as you are a legitimate and responsible business, you will end up finding the right merchant account provider!