Thursday, November 21st, 2019
Credit repair companies provide important services to help fix the credit scores of people all over the world, enabling them to take advantage of the perks of having a higher credit score, such as purchasing a home, car or qualifying for loans to grow their own business.
Credit repair companies help customers to review their credit reports to look for errors and dispute them to raise their credit scores. Errors are such a common occurrence that the Federal Trade Commission stated in 2017 that approximately 20% of adults had errors on their reports.
In a world where people are finding it more difficult to stay on top of their credit scores despite their intrinsic importance, credit repair services come as an invaluable saving grace. But, in order to provide this aid to clients, businesses need to have a dependable merchant account that offers services that help make their job possible.
Even though credit repair companies’ services are important and well sought after, traditional banks often won’t provide them with merchant accounts because they are considered high risk. They’re considered high risk because credit repair businesses often sell more expensive services and usually on a recurring billing plan. Both of these attributes make them susceptible to becoming victims of chargebacks, where customers dispute the charges and the merchants are forced to issue a refund and pay for secondary processing fees.
They’re also classified as high risk because they often accept payments through virtual terminals. Because the transactions take place online and the business cannot verify the identity of the card user, this increases the likelihood of fraud.
Credit repair companies are also subject to consumer protection regulations because of the sensitive information that they are handling. This requires an extra level of underwriting due diligence from the company’s credit card processor.
Merchant accounts are an absolute requirement in order to do business in today’s economy. Your business requires a seamless terminal to accept payments from clients so that you can get to work for them as soon as possible.
In order to do this, credit repair businesses will need to apply for a high-risk credit repair merchant account.
Best Payment Providers works with credit repair merchants that offer the following services:
- Cease and desist collections processing
- Credit re-establishment
- Credit repair consultation
- Dispute processing
- Settlement assistance
In order to apply for an account, processors and underwriters require information to prove that you are running a legitimate business and are making money while doing it. As part of your application, they will look for any red flags that might imply otherwise.
In order to apply, you simply require the following:
- A valid, government-issued ID, such as a driver’s license
- A bank letter or a pre-printed voided check
- 3 months of the most recent bank statements
- 3 months of the most recent processing statements, if applicable
- An SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargeback ratios less than 2%
- A secure, functional website
Even if your credit repair business is small or new, there are credit repair merchant accounts available for you to ensure that you have the tools for success.