Credit Repair Merchant Account
In the aftermath of the financial downturn of the previous decade, countless individuals and businesses found their credit scores in dire straits, making it difficult for them to secure any type of loan, rent housing, or even be hired for jobs. Sensing a need, the credit repair industry blossomed. However, alongside the legitimate businesses seeking to help people, numerous scam artists also came out of the woodwork to prey on the vulnerable. Largely because of these fraudsters, payment processing institutions now view credit repair merchant accounts as high-risk propositions – leaving honest entrepreneurs who genuinely want to help people with their credit problems to face higher fees, more restrictions, and a more difficult approval process.
Is it all bad news, then?
Not necessarily. As long as you keep in mind a couple of critical points, it’s still very possible to obtain a credit repair merchant account. What should you remember?
- The industry is what it is. Financial institutions that offer payment processing accounts for credit repair businesses are not going to change their minds overnight about the risks involved. A bunch of scammers promised the moon to a lot of desperate people and took thousands of dollars out of the pockets of those who could least afford it. You’re in this business to offer people real help, but you’re still operating within the industry as it currently stands. Similarly…
- Your business is what it is. Don’t try to sugar-coat your business model or offer euphemisms about the services you offer when you submit an application for a payment processing account. Also, be very wary of any merchant account provider who claims to be able to guarantee you a low rate for your credit repair card processing account – it’s likely that they intend to be less than honest with the financial institutions involved when it comes to the nature of your business. The problem is, this isn’t the sort of secret that keeps itself very well. All it takes is one random transaction audit – not exactly an uncommon occurrence – and the bank figures out what kind of service you really provide. What happens then?
Your account gets shut down. If there are any transactions that you haven’t received payment for yet, expect that to be held up for at least six months. If you’re lucky, it ends there – but more likely, you’d find yourself on an industry blacklist for merchant account providers, which would make it next to impossible for you to open up a merchant account for any sort of business in the future. In short, it’s a really bad idea to try to pretend your business is something it’s not.
Okay, so what should you do to help secure a Credit Repair Merchant Account?
You need to find a merchant account provider who is willing to work with businesses in high-risk industries like yours. You won’t find rates as beneficial for credit repair payment processing accounts as you might for merchant accounts in other types of businesses, but that’s simply because you’re operating in an environment where everyone has to be a little more careful. Over time, if you maintain low rates of chargebacks and other account issues, you may be able to prove to your credit repair merchant account provider that your company isn’t as much of a risk as some of your industry peers, and with some help, you may be able to adjust the terms of your merchant account to be less onerous. However – very much like you probably advise your credit repair clients – it will take some time and careful management before you see a real difference.
Durango Merchant Services is here to help secure your Credit Repair Merchant Account
Our dedicated team has negotiated on behalf of more than 12,000 clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of credit repair merchant accounts.
We know that there aren’t always easy answers. But remember, there is almost always a way forward and if you can make it through the first few years with a good track record, life will become much easier and your business will be better for it.