In today’s market, bad credit is a common thing. That’s why you can find many credit repair companies on the marketplace. The credit repair industry mainly includes small businesses. No single company accounts for over 5.0% of credit repair industry revenue. Domestic (US) total annual revenue for the credit repair industry made up $6.0 billion in 2015.
Categorization of the Credit Repair Industry
Businesses in the credit repair industry generally fall into the following SIC (Standard Industrial Classification) codes:
- 7299: Consumer credit counseling services; Credit repair (i.e., counseling) services
- 8748: Business Consulting Services
- 7323: Credit Reporting Services
- 7389: Business Services, Not Elsewhere Categorized
Credit repair or credit consulting businesses generally use one of the following two NAICS (North American Industry Classification System) codes:
- 541990: Other Professional, Scientific, and Technical Services
- 561450: Credit Bureaus
- 541618: Other Management Consulting Services
Applying for a Credit Repair Merchant Account
When looking for a payment processor to get a credit repair merchant account, take the time to research well and find a reputable processor like emerchantbroker.com. EMB provides all-inclusive credit card processing services to credit repair merchants, including both startups and businesses processing millions of dollars per month, as well as DIY credit repair software providers and all-inclusive credit repair services.
Even if you are a new credit repair company and don’t have any processing history, EMB can work with you to set up your merchant account today.
Another important issue refers to credit repair companies being high risk and high volume. These are 2 unattractive qualities to traditional banks and financial institutions. Fortunately, being high risk is not a problem for EMB. Emerchantbroker.com is voted nation’s #1 high risk processor and boasts an A+ rating with the BBB. EMB is rated A by Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016.
Important to Know
The majority of credit repair businesses want to scale their business to $100.000 per month or more in sales. The thing is that their first merchant account is typically capped at somewhere $25.000 – $50.000. So how can credit repair companies increase their processing cap?
Just as in the case of a business loan, the track-record enables to obtain a larger line of credit. After 3 – 6 months of successful processing, which assumes a stable chargeback ratio, steady volume, predictable transaction sizes, etc., it’s possible to request to have your account reviewed and obtain a higher limit.
When it comes to an underwriter, the latter’s role is to ensure that the business is a good risk, from a chargeback and regulatory aspect, for the credit card processor.