Credit scores reveal a lot about the financial health of an individual. A good credit score allows access to many financial products such as bank loans and credit cards where the terms are more favorable than if the consumer had a poor credit score.
A poor credit score can bring a host of problems. It could make it difficult to qualify for a car loan or a mortgage. It may even prevent you from qualifying for a new job or renting an apartment.
Sometimes, an individual’s credit score has errors that need to be corrected. This can occur if a creditor submits the wrong information to the credit bureau. An identity thief can also be the culprit behind the erroneous information if they have taken out credit by using the consumer’s name.
What Is A Credit Repair Merchant Account?
Consumers do not need to handle these errors alone. A credit repair service can assist them in correcting these issues.
In order to accept payments from your customers, you will need a credit repair merchant account. With a credit repair merchant account, you will be able to accept credit and debit card payments.
Another great option is that you can accept electronic checks as payment as well. This is a vital option since many of your customers will no longer have access to credit cards due to their poor credit status. However, most customers do have a bank account, which will enable them to pay you with an e-check.
A credit repair merchant account also has the capability of accepting recurring payments. Not only is this a convenient way for your customers to pay you, but you will also be able to benefit from the consistent cash flow each month.
Why Is Credit Repair High-Risk?
If you are looking to assist consumers in rectifying their credit, then you will need a credit repair merchant account. But local banks and other traditional providers will not provide you with a credit repair merchant account. The credit repair industry is categorized as a high-risk industry.
Why is it considered high-risk? The reason is the type of business model they use. Credit repair services work with financially vulnerable clients that may not be able to fulfill their financial obligation on a regular basis, or even in a timely manner.
Usually, recurrent payments are the way that clients pay the merchants, and this can inevitably cause a chargeback. If the merchant racks up too many chargebacks, their merchant account could be shut down.
Selecting The Best Credit Repair Merchant
If you are in the market to find a solid credit repair merchant account, you must select a provider that offers all the features that are right for your business. Some of the most important features to look for are:
- Multicurrency possibilities
- eCheck process (highly recommended)
- Top-tier customer service
- International merchant account provider
- Custom price quoting
- Rates and fees that are fair
- Quick underwriting
Keep in mind that high-risk merchant account providers have a well-founded reputation for operating more on the “shadier” side. Look for providers that are more transparent in their pricing and in their contracts. If you have any questions or doubts about the terms and conditions of your contract, do seek the expertise from a lawyer.
How To Get Approved For A Credit Repair Merchant Account
Although no provider can guarantee your approval, you can boost your chances of getting approved for a credit repair merchant account.
- Demonstrate a business plan: Put your provider at ease by having a solid business plan from the get-go. Show them what type of services you will be provided as well as demonstrate where your profits will be coming from. Indicate that the customers you do draw in will be the type to pay you on time, with little chance for chargebacks.
- Be honest: Always be open about the type of business you run and how you plan to operate it. This will increase the likelihood of getting your application for a credit repair merchant account approved. Be ready to show all of your credit card processing history and possible chargebacks that could be associated with the type of business you run.
- Protect your credit rating: Business, as well as personal credit ratings, are the ticket to financial products and services. Ensure that you take really good care of your credit rating in order to have the best outcomes in your merchant account application process.
- Have important documents ready: All providers will ask you to submit important and official documentation to supplement your application. Some of these documents may include three months of bank statements, personal identification, and if applicable, three months of credit card processing statements.
- Justifications for previous chargebacks: This all goes back to the importance of transparency. If you have had to deal with chargebacks in the past, you must demonstrate the documentation for all chargebacks. It will greatly improve your chances of getting approved.
- Be compliant: When it comes to operating a credit repair business, being in compliance is paramount. Follow all the best practices that are required by credit repair businesses. If any further information or documentation is requested, submit it as soon as possible. If there are any rules or regulations, simply follow them.
- Pay down your debt: If you happen to have a high amount of debt that is outstanding, demonstrate to the provider a game plan on how you plan to reduce them. Showing a strong balance also increases the chances of winning approval.
Get Your Credit Repair Merchant Account Today
To find the best credit repair merchant account provider, consider choosing one that has really done its “homework” on payments. Ensure that they specialize in the high-risk industry, and if possible, the credit repair industry.
Seeking a provider should be about forming a solid partnership that will assist you in both managing and growing your credit repair services business.