The Best Student Loan Prep Merchant Accounts From EMB

Dec 07, 2016

This summer, Money magazine reported that “Graduates in the Class of 2016 are saddled with $37,172 in student loan debt, on average, while those in the Class of 2003 had an average of $18,271 to pay back upon graduation.”

Considering this, it’s safe to say there’s a need for student loan modification. With student loan debt increasing every year, more and more students are starting their professional life with an overwhelming burden. Many students want to pay their loans off as quickly as possible. Other students need their monthly payments to be decreased because they are unemployed or only working part-time.

A loan modification merchant is responsible for helping students do just that. However, if you work in this industry yourself, you know loan modification merchants have their work cut out for them. These merchants are deemed as high-risk ventures. Due to strict underwriting rules, they are typically rejected by credit card processors. The good news: you can receive a merchant account for your student loan modification firm.

Industry Risk Analysis

The truth is, the loan modification industry is simply not the most stable. Revenue is low, and so is the number of merchants and firms offering loan modification services. The fact that it is also categorized as high-risk makes things even more complicated. Clients typically come in with unrealistic expectations and do not always receive the best deals, even with the genuine efforts of the merchant. Thus, there are many chargebacks – a huge reason why credit card processors shy away. Dishonesty of some student loan modification merchants also elevates the risks involved.

Specialized Credit Card Processing Services

As a high-risk business, loan modification merchants have to secure specialized credit card processing services to operate. In order to choose the right option, there are several features you should look for from a merchant account provider. Most importantly, the application process should be simple. You preferably want to complete the application online as well, since it is more secure.

In addition to a hassle-free application process, make sure you’ll receive ACH check processing services. You want to provide as many options as possible for your customers to send payments. In addition to safe credit card processing, the provider must be able to handle high volume processing. With cyberattacks on the rise, it’s also critical that you inquire after the provider’s chargeback protection and prevention programs. Make sure that their services allow you to be notified immediately and be proactive in the process.

Choosing the Right Option

Unfortunately, the high-risk nature of the industry does not leave student loan merchants many options. To make sure you’ll receiving the best services, do your research and weigh all your options. The ideal provider will offer all the features you’re looking for, at affordable rates and with reliable support services. Consider our student loan prep merchant account services here at eMerchantBroker.com. Ideally, the service provider should have years of experience in dealing with your industry, like the team of experts here at EMB.

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 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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