What You Should Know About Credit Repair Merchant Accounts

Jun 16, 2017

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.

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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 on 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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