Bad credit is widespread, so more and more credit repair companies are surfacing to assist the victims. But it takes time to get a credit repair merchant account and quality accompanying services.
Credit repairing merchants are considered high-risk, which means your best shot is with modern account providers and not banks. Plus, you are looking for a vendor who will offer customized services to meet your firm’s demands.
What does Credit Repair Entail?
Credit fixing service providers aim to help people with bad credit improve their credit scores by spotting errors in your reports and disputing incorrect info with the relevant organizations. Customers who often seek these services are those with credit issues linked to bankruptcy or a change in lifestyle, e.g., a divorce.
The industry offers the following services to its clients:
- Credit re-building
- Settlement assistance
- Credit fixing consultation
- Cease & desist collections processing
- Dispute processing
What you need to get a credit repair merchant account
It is possible to get a credit repair merchant account today whether you run an online credit repair business or one in a physical location. Most contemporary account providers will ask you to begin by filling out an application and request you to submit or meet the following:
- A valid ID, e.g., driver’s license
- Bank statements for the last three months
- A bank letter or voided check
- Social Security Number or Employer Identification Number
- Below 2% of Chargeback ratios
- Fully operational and secure website (for online retailers)
What underwriters inspect during application
When in the process of searching for a merchant account, underwriters and processors insist on verifying that your credit repair business is legitimate. Underwriters assess the level of risk by checking for any red flags and ensuring they abide by all credit repair rules.
The risk is assessed by checking the merchant’s credit scores, bank statements, credit card processing history, and its official website. Underwriters also insist on a prominently posted strict privacy and refund policy. Remember, liability increases to the credit card processor if the retailer has a negative balance in their bank account, a history of multiple chargebacks, unsettled bills and late payments.
Therefore, preparing for an underwriter’s review means clearing all outstanding debts and bills, holding a substantial amount of money in the bank, and ensuring the stakeholder with the best credit history apply for the credit repair merchant account.
Wrapping Up
There you go; the easiest way to get a merchant account for your credit repair business. However, retailers must put side by side their options if the goal is to end up with the best offers in the marketplace.