Credit Repair Merchant Account Solutions

Feb 20, 2018

U.S. credit card debt hit $764 billion in the first quarter of 2017, according to the statistics released from the Center for Microeconomic Data for the Federal Reserve Bank of New York. Those these numbers are high they are better than the $870 billion in credit debt that Americans hit during the Great Recession.

The financial downturn of the previous decade not only left many individuals and businesses swimming in debt with plummeting credit scores, credit repair businesses got a bad name in the industry. As individuals found it increasingly more difficult to secure a loan, rent an apartment, or buy a car, the credit repair industry progressed. Though many legitimate businesses stood up to help those trying to get their credit back on track, other scam artists preyed on the vulnerable. The rampant fraud in the industry led to banks classifying credit repair businesses has high risk. Carrying that label means a business has a more difficult time getting approved for a credit repair merchant account, which is required for any business that wants to accept and process credit cards. Credit card processing is necessary for any online or any business that wants to be more profitable and marketable.

Though credit repair businesses have an uphill battle, obtaining a merchant account is not impossible. If you know the process and what to expect, you can get an account and begin efficiently and safely accepting and processing credit card payments.

Factors that Impact Getting an Account

Many credit repair businesses and other high-risk businesses get turned down for a merchant account or are subjected to higher fees and stricter restrictions simply due to the nature of their businesses. Traditional financial institutions turn down many high-risk businesses because of their increased chances of excessive chargebacks, which are when a consumer disputes a charge and the merchant refunds it. Merchants also end up paying a fee for a chargeback. Too many chargebacks in a single month can result in lender terminating a merchant account.

In addition to chargebacks, merchants get turned down if they have poor or inconclusive sales projections and bad credit. A previously terminated merchant account also can negatively impact a business’ chances of obtaining a credit repair merchant account.

Find the Right Provider

When it’s time to find a merchant account provider, look for one that is willing to ignore the stigma surrounding the industry. It is key that you find a provider that will make a decision based on your business’ individual merits. Also, make sure the provider you choose has a history working with businesses in the credit restoration or repair industry. If they have worked with these businesses in the past, they will know the challenges to expect and can help you plan for them.

Be Honest

Some may think it is smart to be vague or call your business something it’s not in order to just get a merchant account open. By calling your business, “consulting” or “business services” you may end up getting approved for a credit repair business, but then, you can expect some trouble later. When you lie about transaction volumes or the services you provide, your provider can shut down your account and hold any funds that are in your account.

If you tell the truth and give a provider an accurate picture of what you do and the business you expect to bring in, a merchant account service agent can be upfront about costs and other factors. Taking this approach paves the way for you successfully accepting credit card payments in the future.

In Conclusion

As consumers continue to choose paying for transactions with credit cards over cash, there is a good chance that they will continue to carry a significant amount of debt. Carrying too much debt creates a need for top-notch credit repair businesses. Responsible, valid businesses that want to help people dispute incorrect information on their credit reports and help them boost their credit scores must people able to accept credit cards for payments for their services.

When it’s time to obtain a credit repair merchant account, turn to a merchant account service provider that has experience and expertise to provide you with services that match your needs. Applying for a merchant account is simple and fast.

To learn more about applying for a credit repair merchant account, contact (EMB). We are a trusted, reliable payment solutions provider that specializes in offering merchant accounts to all type of merchants, including high-risk businesses.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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