Apr 04, 2014

How to find a Merchant Account for a Credit Repair Business

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Having a credit repair business can be financially rewarding. However, finding a merchant account processor that deals with credit repair businesses is difficult. Finding one that has reasonable fees is even more difficult, but with thorough research, it can be done.

Credit repair businesses are considered high-risk businesses, and many merchant account processors turn up their nose at businesses considered high risk. However, there are some merchant account processors who specialize in high-risk accounts. The majority charge higher rates, because high-risk companies come with a higher risk of failure. With careful consideration and research, you are sure to find that there is a merchant account processor that is right for you and your company.

When you decide on your chosen merchant account processor, you will have to provide information about yourself and your business. Basic information such as driver’s license information, copy of voided bank letter, customer contract sample, and previous months of account statements and bank statements are all normally asked for. If you are a startup company, a merchant account processor can also consider you. For a startup credit repair business, with no previous processing history, a reserve is usually required from the bank. A reserve account is an account set up by the bank to hold a percentage of your sales in “reserve” to pay for any possible chargebacks or disputes that may occur. These reserve payments are held for a few days, and then are returned back. It is a simple way for merchant account processors to check that you are truly a business.

Having a high-risk company such as a credit repair business can be a headache, but it can be well worth it. Not only are you helping yourself out financially, but you are also helping those in need of credit recovery help. While finding a merchant account processor may be tough, it can be done. Be sure to check out all of your options before you make a decision, as choosing the wrong company can hurt your business.

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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 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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