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Credit repair: How to accept payments

Why are credit repair merchant accounts considered “high-risk”?

Because we offer payment gateways and recommend vetted credit card processing solutions we are often asked why those in the credit repair industry often have such a hard time accepting payments and why we have had success placing them with providers that fit their business. If you have been in the business for a while, it isn’t hard to understand why the credit repair industry is considered “high risk” by most merchant account providers. If you are new to the credit repair business, you may have been surprised when you first learned that it is actually very difficult to set up a reasonably priced, credible, payment gateway merchant account for your website.

In some part, it is because credit repair is an industry full of varying regulation depending on regional laws, and is even further complicated by the perception of rampant fraudulent activities. Because your clientele tends to be struggling, or they would not need credit repair in the first place, regulators are often very sympathetic and serious when it comes to penalizing those who take advantage of people simply looking to improve their credit. Credit card processors are hesitant to involve themselves in an industry that has a reputation, right or wrong, for preying on those folks who have had financial misfortune. Even though it is unfair to the thousands of honest, hardworking people who have dedicated themselves to helping people with their client’s genuine credit repair needs. This is where our recommendations, based on experience, come in so handy.

In addition to reputational fears, the risk of chargebacks and refunds are significant and that gives the processors great pause. Credit repair has, by its very nature, the potential to cause dissatisfaction. There are no guarantees of success and client happiness especially when you, as the credit repair company, depend on participation from your client to succeed. If for some reason your clients are dissatisfied then the processor is on the hook for chargebacks or refunds should you not be able to satisfy your obligations.

Appropriate gateway and processor recommendations are very important

Processors are understandably wary of this risk.  Even with all these obstacles, there are many brave souls like you still see a profitable business market with the ability to help many consumers improve their credit. Luckily, there are payment gateway and merchant account solutions that are credit repair friendly – if you know the players in the industry like we do. The processors and providers we recommend understand the business they are getting into, and they appreciate it.

Need a payment processing recommendation for your credit repair business?

Just starting out?

Check local and federal law before choosing a location

Are you starting a new credit repair or monitoring website? First, you must decide where you will be operating. As mentioned, regional laws vary greatly from state to state and county to county. We found a website that gives you a sense of each state’s laws, but if you are seriously interested please make sure you call a legal expert in your area and confirm the necessary steps to open and laws to regulate your credit repair business.

The state laws link above is for reference purposes only, we cannot vouch for its accuracy, we are in the e-commerce business, not the business of “lawyering.”

In addition, you must comply with the Credit Repair Organizations Act and other federal regulations, which are detailed here, and again please contact a legal expert in addition to any reading you do online. Remember, once you have established your business in one region, you can always create new programs for other regions, as long as you comply with the laws of that region.

Get certified and brand yourself for credit repair

Now that we have the legalities out of the way, here are some other things you should have before opening the virtual doors to your business service. Take some courses and certifications before working in the credit repair industry, not that it is always legally necessary, but these courses will add a lot of value to you. Because knowing as much as you can about your industry is the best course of action in any business, and in credit repair especially knowledge is key.

With that in mind, know your industry and choose a business name that is easy to brand in that industry, and check trademarks carefully.  Marketability is a necessary step to running any successful business and the last thing you need is a cease and desist telling you that you can no longer use a name you have spent time and money branding.

Choose a URL, pick your software, and set up payment processing

As soon as you decide on a name, register the URL. It’s cheap and easy, so there is hardly any cheaper insurance against disappointment than registering a great URL when you see it. With a solid name in mind, it’s time to incorporate your business or start an LLC. This is the best way to protect your personal assets from your business liabilities. It also gives you a professional image to your potential clients who will want to hire a credit repair specialist they feel like they can trust.

Now with your business ready to move forward, it’s time to build a website. We have a plethora of software spotlights for you to browse which may help you find a platform for your website that suits all of your needs. In addition to being great software platforms, they are also compatible with our high-risk payment gateways and merchant account recommendations. It’s important to be able to process credit cards and accept payment online, but being in a “high-risk” industry can make that complicated.

We can help you by recommending a payment gateway and a merchant account that fits your business.  Please contact us if you have any questions about payment gateways or merchant accounts and need help setting up payment processing on your website.