Why Should a Credit Repair Company be Considered High Risk?

Feb 13, 2015

It almost seems like an oxymoron. Credit repair equals a high risk merchant account. How can someone who is trying to help an individual repair his credit be considered a high risk business? It is not that the business owner is high risk. It is more that the individuals he has as clients are considered a high risk. Those entertaining getting into this industry need a high risk credit repair merchant account.

You could say it’s the old adage about a tiger never losing his stripes. Once and tiger, always a tiger. Once a deadbeat, always a deadbeat. This is really cruel saying that just because a person got into financial trouble he will always be in financial trouble. This is the way the card associations see it.

Plus there is another anomaly in the credit repair business. Clients will begin the program with the best of intentions. Then after several service payments have been taken from his checking account he gets buyer’s remorse. He calls his bank and says he never authorized the ACH deductions. Thus, the credit repair company will receive a lot of chargebacks.

If someone asked what is the number one reason a merchant account is considered it would be because of a high number of chargebacks. There are a lot of unscrupulous people out there, unfortunately. The risk of fraud arises when an illicit telemarketer or online merchant obtains a consumer’s checking account information and initiates an ACH debit transfer that may not be authorized by the consumer. In the case of an ACH debit, when a consumer receives a refund for an unauthorized debit, ACH rules permit the consumer’s financial institution to recover the amount of the unauthorized payment by returning the debit item to the originating financial institution. This is where the high risk comes in and every financial institution hates it.

With eMerchantBroker.com, credit repair merchant accounts need to remain under a 3% chargeback threshold. EMB also has insurance and programs which help eliminate some of the chargebacks saving the merchant thousands of dollars each year. There is never an application fee and rates are some of the lowest in the high risk industry.

Let us help you get a high risk merchant account today!

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