Helping others repair their credit has blossomed into a massive $4 billion industry. According to IBISWorld, as of January 2017, more than 90,000 such businesses opened. Businesses comprising that huge figure vary from the large corporations running TV ads to small businesses run as partnerships. Although the businesses provide a necessary service, banks and online payment gateways make obtaining the needed credit repair merchant account tough.
Ironically, it goes against most banks credit policies to provide a merchant account to a credit repair firm. Credit repair businesses experience a high volume of chargebacks, sometimes these can be in the double digits. A charge back refers to when a customer disputes a charge by calling the number on the back of their credit card.
Common payment facilitators like PayPal and Stripe don't offer merchant accounts to credit repair companies as they share the same tier one credit policy. This type of business violates their Terms of Service. A credit repair company may process neither credit card payments nor ACH Transfers using their services. If you have a credit repair agency and somehow managed to stay under the radar, just know you run the risk of termination and they can hold your funds until the chargeback liability period expires.
That leaves providing credit repair merchant processing to other financial institutions, like PaymentCloud. We're a merchant services company that specializes in providing merchant accounts to credit repair companies that are deemed high risk. With an account from us, you'll be able to accept credit cards and e-checks without worrying about getting shut down for your industry type.
We have relationships with banks that allow for credit repair agencies and that are comfortable with the business type. We also have charge back mitigation tools to help you maintain a healthy processing account so you don’t get shut down. Keeping your chargebacks in order is very important as banks have an acceptable chargeback ratio that merchants must adhere to, if the ratio is too high the account is deemed to risky and will be shut down.
Our application process is quite simple. We need to send an application to the bank along with the supporting documents listed to the right. Our trained account executives will hold your hand throughout the entire underwriting process and help expedite as much as they can. To get started simply call the number above or fill out the contact form.