5 Steps to a High-Risk Merchant Account for New Credit Repair Businesses
Starting a credit repair company can be a lucrative business that will ultimately help a large number of people. However, collecting payment for services rendered can be difficult because credit repair companies are given a high-risk business statement. High-risk accounts will have higher fees that can eat away at profits, but trying to circumvent the system by faking an application for a merchant account is not an option. It can cost a lot of time and money in the long run. Here are 5 steps new credit repair companies need to take to get a merchant account.
1-Set aside some money before starting the business to cover the high fees associated with a high risk account. Unfortunately, there have been too many companies in the past that promised credit repair services, took a customer’s money, and then disappeared. This has made things difficult for legitimate businesses, especially new ones.
2-Take the time to find at least three companies that offer services for a high-risk merchant account. Compare rates and be prepared to do some research on each company. Don’t automatically sign up with the one that offers the lowest rates.
3-Research each company on the Internet and check with the Better Business Bureau. Whenever possible, consider contacting the company’s current customers and asking them how they feel about the merchant account service.
4-Once a company has been chosen, it is time to start the application process. The application is quite simple. However, a good credit rating helps ensure that a new credit repair company receives credit processing services. Approval can take several weeks or months. Follow-up phone calls and emails may be required to check the status of an application for a high-risk merchant account.
5-Before signing any document, read every word. Make sure payment dates and frequency of payments are clearly explained. Please understand that there may be a longer wait time for applicants with a newly established business or an applicant who has less than stellar credit.
The process can be expedited by ensuring that all necessary documents are submitted with the application. Letters of recommendation may be required for some applicants. It is a good idea to do it as soon as possible. Don’t let the difficulty of obtaining a high-risk merchant account stop you from starting a credit repair business.
