The document preparation merchant services industry is classified as high risk. So, you should find a respectable processor to work with so to get a document preparation merchant account without challenges. This article will tell you what to focus on when applying to a processor so you can find the right one for payment processing.
Document Preparation Merchant Services Are High Risk
The high risk nature of your business suggests you need to identify a suitable high risk payment processor if you wish to get a merchant account for your document preparation business. Search for the provider that’s the best fit for your business. Why? The account services you have will highly influence the way you make money.
So, only a processor with underwriting guidelines that allow accepting high risk businesses can secure account services for a document preparation company. The underwriting team is responsible for assessing the riskiness of your business from the perspective of the credit card processor.
Why are doc prep businesses labeled “high risk?” This is basically due to following reasons:
- Mail Order/Telephone Order (MoTo) Payments
Doc prep businesses accept their payments over the phone, via mail or email. These services are less secure methods of accepting credit card payments as compared to retail swiped (or chip) or via eCommerce.
- Large Average Tickets
Doc prep businesses typically require hundreds of dollars to deliver their services. Many of them have but a few dozen transactions on a monthly basis. Larger transactions often deal with “friendly fraud” by customers.
- Service-Based Nature
Businesses of this type often deal with chargebacks. Also, many doc prep businesses, especially in the finance field, assist customers with student loan consolidation, debt counseling, and other services. The latter services are typically meant for clientele with debt issues and often bad personal credit.
How to Find the Right Document Preparation Merchant Account Provider
Have you decided to apply for a doc prep merchant account? If yes, you’ll be required to include the following information in your application:
- A copy of the owner’s ID or driver’s license
- The owner’s social security number
- A copy of a voided business check
- The most recent 3 months of credit card processing statements (if you accepted credit cards in the past)
How to make sure you’ve found the right merchant account provider for your doc prep company?
1. Pay attention to unfavorable terms and hidden fees in the terms and conditions. Don’t fail to read the terms and conditions before signing any document.
2. Look for a true professional in the field. Only a reputable merchant account provider that specializes in the high risk industry can help you get the best deal for your business. Consider turning to eMerchantBroker.com, a respectable payment processor that’s considered the #1 high risk credit card processor in the US and boasts an A+ rating with the BBB.
EMB is focused on providing merchant accounts for businesses providing document preparation services relating to student loan consolidation, loan counseling, loan modification, debt negotiation and settlement, mortgage, tax preparation, legal and divorce services.
EMB talks to every single business owner to get to know his/her business and provide the right merchant services for his/her specific business needs.
3. Be prepared for the screening process. All legitimate merchant services providers require businesses to pass through a screening process. This will help providers figure out whether a business is credible to work with or not. So, you should have all the necessary business documents, financial statements, processing statements, and a cover letter to submit.
To get fast and easily approved for a document preparation merchant account, you should look for a provider that has a thorough understanding of every aspect of the industry. Only a merchant account provider that’s well versed in all the state legislation and restrictions affecting your business, can help you get the best for your business needs.