The Best Merchant Accounts For Credit Repair Companies
If you’ve visited our business loans section, you know that credit scores still play a huge role in a merchant’s ability to get funding. Business owners with poor credit may find themselves locked out of some of the better sources of funding. Maybe you’ve decided to make helping business owners repair their credit your business. Now you’re looking for a merchant account for credit repair companies.
However, getting a credit repair merchant account can, itself, be a bit of a challenge. You’ll probably need to get a high-risk merchant account.
Read more below to learn why we chose these options.
Table of Contents
- Why Do You Need A High-Risk Merchant Account For Credit Repair Businesses?
- The 4 Best Credit Repair Merchant Accounts
- Looking For One Of These Merchant Accounts For Credit Repair Businesses
- 3 Tips To Help You Improve Chances Of Getting Approved For A Credit Repair Merchant Account
- How Do I Choose The Best Credit Repair Merchant Account For My Business?
- In Summary: The 4 Best Credit Repair Merchant Accounts
Why Do You Need A High-Risk Merchant Account For Credit Repair Businesses?
Banks, conservative lenders that they are, tend to be reluctant to extend much goodwill toward customers with poor credit. It just so happens that those customers are your clients. Their rationale works something like this: “If we can’t rely on those customers to pay us, why would we expect them to pay you?” In practice, this means that they view credit repair as a high-risk industry, especially prone to chargebacks and fraud.
For credit repair companies, this means that popular third-party processors like Square, PayPal, and Stripe are out, as are many of the most competitive merchant account providers. Instead, you’ll have to look at high-risk merchant services providers to get your credit repair merchant account.
Should You Get An Offshore Merchant Account For Credit Repair?
Offshore merchant accounts, provided by a bank located outside the U.S., are often touted as a way to do an end-run around the restrictions of domestic merchant account providers. This strategy can work, but it can be expensive–even more so than working with a domestic high-risk merchant account provider. Additionally, you may have a hard time resolving any legal disputes that arise.
One limiting factor for credit repair companies is that credit scores are a distinctly American phenomenon. You probably won’t have much of an international market for your services, which limits the amount of advantage you can reap from an offshore account.
The 4 Best Credit Repair Merchant Accounts
Merchant Maverick has found that the four best services offering the best credit repair merchant accounts are PaymentCloud, Soar Payments, Instabill, and eMerchantBroker.
High-risk merchant account providers can be among the shadier segments of the payment processors. That makes the reliable, transparent ones like PaymentCloud all the more valuable. In fact, many of the bigger “low-risk” payment services will refer businesses they can’t serve to PaymentCloud.
PaymentCloud offers a full set of features to its customers, including shopping cart integration, ACH processing, virtual terminals, support for POS systems. Gateway services are provided through a partnership with Authorize.Net. And you’ll be happy to hear you’re assigned a dedicated account manager who will advocate for you should you experience and pesky account freezes or holds.
PaymentCloud offers both tiered and interchange-plus pricing. As a general rule, we suggest you avoid the former when possible as it obfuscates a lot of your costs. This means you may have to directly request interchange-plus pricing. Harder to avoid are the contracts, which can last up to two years for high-risk merchants. That said, just about every aspect of PaymentCloud is negotiable, so it doesn’t hurt to check when and if you can be placed on a month-to-month agreement.
- No account setup fee
- Reasonable rates & fees
- Excellent customer support
- Free credit card terminal
- Terms can vary widely
- Contract may be required
2. Soar Payments
Being a high-risk business doesn’t mean you have to settle for second rate service. If you’re looking for a fully functional suite of payment processing features, you should consider Soar Payments.
Soar Payments offers eCommerce integrations, a payment gateway through Authorize.Net, ACH processing, and POS hardware–which covers just about all your bases. Additionally, it offers chargeback management and fraud prevention, which will help cut down on fraudulent chargebacks and other suspicious activity.
Pricing is typically tier-based for high-risk merchants, which isn’t ideal, nor is the two-year contract and hefty $495 termination fee. The good news is the early termination fee is only charged if you terminate your account, and the fee is removed after your initial term has been satisfied. Additionally, contract renewals are for one year after the initial two-year term.
- Automated custom price quoting
- Easy application process
- Fast underwriting
- Excellent customer service
- Only available to U.S.-based customers
- Untransparent tiered-pricing
- Initial high early termination fee
Not Yet Rated
We touched on overseas merchant accounts earlier as a viable option for high-risk merchants. One way to go about getting one is to go through Instabill, a service specializing in overseas merchant accounts.
If your business proves too risky even for most high-risk payment processors, Instabill appears to be able to work with even the riskiest businesses (online gambling sites, for example). The feature suite isn’t the most complete, but you can get ACH processing and mobile EMV POS through integrations or Instabill’s partners. Credit card terminals are available through lease, which we generally recommend against.
Since Instabill is partnered with a number of banks throughout the world, there’s not much information available upfront about pricing. A big point in Instabill’s favor, however, is that there really aren’t that many customer complaints out there about them. Expect higher prices, but also competent customer service and complaint resolution.
- Will work with almost any industry
- Good customer service
- International merchant account provider
- Fees may vary greatly
- Limited features
eMerchantBroker is a simple, no-frills high-risk merchant account provider. If you’re just looking to sell online and don’t need a lot of hardware or bells and whistles, eMerchantBroker may be a good fit for your credit repair business.
As its name suggests, eMerchantBroker is focused on eCommerce; you won’t find any real support for POS or the associated hardware. The company does offer payment gateway service through Authorize.Net, a chargeback shield and, surprisingly, check processing services. They also offer merchant cash advances to customers, so if you’re the type of business that uses them, you won’t need to worry about switching payment processors.
Like the other services on this list, eMerchantBroker doesn’t disclose their pricing upfront. You should, however, expect tiered pricing, contracts, and early termination fees.
- Excellent customer service
- In-service financing available
- Paper check processing support
- Tiered pricing
- Undisclosed terms
- Limited features
Looking For One Of These Merchant Accounts For Credit Repair Businesses
We have one high-risk merchant services provider that didn’t make our list due to our having not yet put together a formal review. Overall, the company appears to be a processor worthy of consideration.
PayKings is a high-risk merchant services provider that serves some of the highest risk industries, including adult entertainment, firearms, and debt collection. So needless to say, credit repair should fall well within their acceptable parameters.
PayKings offers both eCommerce and POS payment processing with ACH support.
3 Tips To Help You Improve Chances Of Getting Approved For A Credit Repair Merchant Account
There’s no magic formula that guarantees approval, but there are some things you can do to increase your chances of being approved for a credit repair merchant account.
1. Have A Solid Business Plan
One thing you can do to ease the concerns of merchant services providers is to have a solid credit repair business plan. Make it look like you know what you’re doing, where your profits will come from, and the risks inherent to your business. In other words, make it look like the clients you do attract will be paying their bills regularly with little chance of chargebacks.
2. Have Good Credit
You may not have a lot of control over your industry’s reputation or those of your customers, but one thing you can directly impact is your own credit rating. As is the case with most things financial in the U.S., having a good credit rating will make it easier to get services. And really, if your business is credit repair, shouldn’t you have figured out how to repair your own?
3. Have The Necessary Document Ready
Your application process will go a lot more smoothly if you have the documents your service provider will request handy ahead of time. Typically this means valid personal identification, three months of bank statements, and three months of credit card processing statements if any. Note that overseas merchant accounts will likely need additional information, so check with the merchant services provider you’re applying to in advance to make sure you’ve got everything you need.
How Do I Choose The Best Credit Repair Merchant Account For My Business?
Being in a high-risk industry like credit repair may narrow your merchant account options, but that doesn’t mean you have to settle for just anything. Even among high-risk merchant accounts, there are good, reputable providers as well as sharks looking to take advantage of desperate businesses. With tiered pricing, the service that appears to offer the cheapest merchant account for credit repair business may not really offer you the most value for your money. Or even the cheapest rate, for that matter, as only certain transactions will be processed at the advertised low rate.
Need more info on high-risk merchant accounts? We can help.
- Do High-Risk Merchant Accounts With Instant Approval Exist?
- Why Tiered Pricing For Credit Card Processing Is The Most Expensive Option
- The Complete eCheck Payment Guide
- What Are High-Risk Business Loans & Where Do I Get One?
In Summary: The 4 Best Credit Repair Merchant Accounts
- PaymentCloud: Reliable high-risk merchant services provider with negotiable terms.
- Soar Payments: Fully featured high-risk merchant services provider with easy, automated processes.
- Instabill: Reputable international merchant account provider.
- eMerchantBroker: High-risk merchant account provider offering paper check support and merchant cash advances.