Credit repair services are considered high-risk, and this can be attributed to the fact that they often work with customers who may not be able to make their payments consistently or on time. This is why it can be difficult for credit repair merchants to obtain merchant accounts at banks and traditional credit card processors. PayDiverse is a provider of credit repair merchant accounts with practical, long-term solutions for credit repair merchants. It almost seems like an oxymoron that credit repair is equivalent to a high-risk merchant account.
However, this is because the people who use these services are considered high-risk by banks and credit card processors due to the high industry chargebacks. Those who are interested in entering this industry need a high-risk credit repair merchant account. First-tier banks are often unwilling to grant a merchant account for credit repair, as it is considered a high-risk industry. Credit repair merchants often struggle to obtain merchant accounts at banks and traditional credit card processors due to the notoriously high return rate that they are known for.
Most credit repair merchants in the United States are small businesses that manage excessively large cash flows, which is another reason why they are considered high-risk. Setting up payment processing for such a company can be difficult, as they are classified as “high-risk” by banks. Many processors won't even accept their request, and depending on the state, they may need to comply with certain credit repair or consumer protection laws beyond the CROA. It is important for credit repair companies to not advertise things that they can't be certain of, such as increasing a customer's credit rating by 50 points or removing 4 negative items from their report. Major publications have criticized the credit repair industry, and often denounce it as an industry that “takes advantage of people's desperation to find a quick solution”. Small business owners often don't work with a credit repair business account provider that offers chargeback alerts, meaning they can't effectively prevent or challenge their chargebacks. Companies need a merchant account to accept major credit cards through a static point-of-sale terminal, a mobile card reader or a virtual payment gateway.
As the website of the official trade association of credit repair merchants, NACSO offers accreditations, relevant educational articles and support to anyone in providing credit repair services. Regardless of the type of credit repair business you operate, you can trust that PaymentCloud will provide you with high-end merchant account services that will keep your customers satisfied. Your personal credit rating should be an asset, not a liability, when you take the necessary steps to open your merchant account. Credit repair merchants offer people with high consumer debt the opportunity to reduce their debts and improve their credit.