In today’s market, bad credit is a common issue. That’s why you can find many credit repair companies on the marketplace. If your business is in the credit repair industry, you could benefit from merchant accounts. Merchant accounts are a way for businesses to accept payments online. They allow you to take credit and debit card payments, as well as electronic checks. For many small businesses, a merchant account is essential for stable and secure online sales.
Credit repair merchant accounts can be very beneficial to your business. By using a merchant account, you can easily accept credit and debit card payments from your customers. This allows you to reduce the time it takes to receive payments, which can increase customer satisfaction. Additionally, accepting electronic checks through a merchant account can improve your security levels.
First, let’s check if your business can be categorized as part of the credit repair services industry.
Categorization of the Credit Repair Industry
The credit repair industry can be categorized into distinct sectors that offer varying levels of services to consumers. These range from credit education providers that teach about managing finances and credit to credit counseling agencies that develop financial management plans for clients in debt to law firms that specialize in credit litigation and dispute resolution. Regardless of the type of organization, they all exist to help improve a client’s financial standing by addressing issues with their credit reports or developing strategies for better money management.
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.
Facts about Credit Repair Businesses
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.
Credit repair merchant accounts are specialized payment processing solutions designed for businesses focused on offering credit repair services to their customers. While they can help these businesses improve their payment processing capabilities, it is important to understand that not all merchant account providers have experience dealing with the unique requirements of credit repair companies. For this reason, it is recommended that you partner with a reputable payment processor like EMB that has years of experience working with credit repair firms and understands the complexities of the industry. Factors like chargebacks and fraud protection should also be carefully considered when selecting a provider. By choosing the right credit repair merchant account, you’ll be able to streamline your payment processing while ensuring compliance with regulatory requirements in your field of business.
The North American Industry Classification System (NAICS) code for credit repair generally falls under two categories: 541990 for Other Professional, Scientific, and Technical Services, and 561450 for Credit Bureaus. Additionally, the code 541618 can be associated with Other Management Consulting Services relevant to the credit repair industry.
The Standard Industrial Classification (SIC) code for credit repair falls under several categories. Code 7299 is used for Consumer Credit Counseling and Credit Repair (i.e., counseling) services. Code 8748 signifies Business Consulting Services, and Code 7323 is for Credit Reporting Services. Code 7389 represents ‘Business Services, Not Elsewhere Categorized’, which can include credit repair services.
Credit repair consulting mainly involves providing advice and assistance to individuals or businesses who are seeking to improve their credit rating. Consultants analyze the client’s credit report, identify any errors or discrepancies, and challenge any negative entries. They also provide advice on debt management and strategies to improve credit health.
Yes, businesses that provide credit repair services generally use one of the following NAICS codes: 541990, which stands for Other Professional, Scientific, and Technical Services; 561450, which represents Credit Bureaus; and 541618, which signifies Other Management Consulting Services.
Credit repair software for small businesses is a tool that assists companies in managing their credit repair processes. The software helps in tracking credit reports, identifying errors, and disputing incorrect information with credit bureaus. It can also automate communication with clients and creditors, making the process more efficient.
Yes, credit repair businesses generally fall under several SIC codes – 7299 (Consumer Credit Counseling Services), 8748 (Business Consulting Services), 7323 (Credit Reporting Services), and 7389 (Business Services, Not Elsewhere Categorized). These codes are used to classify the type of services provided by the business.
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