Getting a merchant account is as simple as filling out their paperwork and waiting for the twenty-four to forty-eight-hour time period for an answer. Many of the nation’s businesses are listed under the high-risk designation, so if you have been placed there, don’t panic.
If you have chosen to be a credit repair business, don’t shy away from a merchant account. A credit repair merchant account will save you hours of time and help your customers stay in line for their payments.
An online business
Even if you are a storefront in some town on block 9, having your storefront online as well, only makes sense for you and your customers. The convenience it gives will help many customers restore their own credit, by paying their collections bills to you. You in turn pay down their debt and everyone wins.
24 hours a day
You can be collecting money from your clients. If your storefront is only open from nine am to five pm, then it severely handicaps your ability to collect money. It only makes sense to be open all the time with your storefront online. When you arrive in the mornings, you can assess what you have collected, place those payments in the appropriate areas, and credit those accounts. And it would make even more sense if you had a program that took care of it for you. Then the work would be done.
More information
As a high-risk account, you will need to have more information about the banks that work with the merchant account services. Likely they will want your driver’s license, three months of bank statements, three months of previous merchant account statements, a copy of customer contracts and/or agreements, and a copy of a voided check or a bank letter to verify that’s your account for deposits.
Reserve account
Since you are in the high-risk pool to do your credit repair merchant account, you will need to have a reserve account. That is to cover any chargeback issues that may arise. Your job will be to prevent any chargebacks and take care of your customers before it gets that far.
10%-20% of your daily transactions will be put into the reserve account. For a trial period of three to six months, that amount will be put aside. Make it a point to plan for that reduction in funds.
At the end of that period, and there are no chargebacks, that money will be returned to you in full.
Follow the rules
Keep things on the up and up, and keep your account clean. After your trial period is over, you should have smooth sailing ahead of you. Take those extra moments and check on the account and be certain all is well. Take care of your customers and do business the honest way. With a recipe like that, your business is on a road to success. Enjoy it while you can.
For more information, contact us today at 818-621-4893.