Merchant Account for Tax Resolution Merchants
Tax resolution companies are deemed high risk, which leads to difficulties when these companies try to find a bank to open a merchant account for their business. As a result, they pay higher fees than usual simply to accept payments from their clients easily. Although the tax resolution industry is not the strongest one, it is still surviving.
The truth is that not many people from the working class know how to handle their taxes and those who do often find themselves behind on taxes because of inflation or many other financial reasons. Nevertheless, the need for tax resolution merchants can't be denied. These companies do not magically make your tax debt disappear, but they will provide guidance and counsel on how to deal with IRS and get the lowest amount and better payment so that your economic situation is not affected as much.
However, tax resolution merchants will find it difficult to get the right card processing service because of the high-risk status. It is important to get the best service possible if you are a tax resolution merchant and if you are a startup, the need for a good merchant account increases tenfold.
Denied by Other Credit Card Processors?
Getting denied by banks for a merchant account is common, especially if you are a high-risk business. This often leads to business owners settling for credit card processors that demand high rates and offer poor terms. Do not fall into that trap because there are services, just like this one, that provide affordable rates and good terms to even high-risk businesses.
In most cases, banks and credit card processors often reject applications due to the high-risk status despite offering assurances at first and making sure that the business owners pay hefty application fees.
All this denial and rejection can be very frustrating for tax resolution merchants, and it gets all the more difficult for startups that are looking to make a mark. But there is a solution: you can contact this service to get the ideal merchant account for your tax resolution business.
Risk Analysis of the Tax Resolution Industry
The fact is that the tax resolution industry is not the most stable one or in the strongest position, and its high-risk status only further endangers its survival. The total revenue of this industry is low, and the number of companies and firms offering tax resolution services is also low.
The high risk is associated with tax resolution merchants because customers come in with high expectations and do not often get the best deal, despite the best efforts of a tax resolution merchant. This leads to chargebacks, which banks do not like at all. The high-risk status is further elevated by the fact that not all tax resolution firms are offering genuine services.
Online tax resolution merchants and credit repair services are very common these days. Getting counsel online to resolve a tax debt or a bad credit situation is easy for people as they can contact these sites and obtain their professional services after directly paying their fees.
However, for tax resolution merchants to receive online payments from their customers, they need a virtual terminal first so that the customers can easily send their payments via credit cards and the merchant can receive them straightaway.
Whether your entire tax resolution business is based online or you are just looking to expand your services to the internet, having an online account is essential.
Type of Merchant Account Required
As discussed earlier, tax resolution companies are classified as high risk and have to opt for specialized services such as this one. However, they have to pick the right service for them so that their business runs smoothly. To give you a basic guide of how to do that, here are some of the features that you should look for in a merchant account before selecting the service.
Make sure that the service offers the feature of recurring billing because it is the most important service you need in the tax resolution industry. Recurring billing is essential to a tax resolution business because you can easily bill your clients on a monthly basis instead of calling them up for payment every month.
Paying hefty application or setup fees does not mean that your application will be accepted, so make sure you look for a service that charges no application fees and even if it does, it should be a small amount.
Make sure the application process is simple and easy. It is preferable that you are able to fill out the form online because it is safer and more secure.
Multiple underwriting banks are another great feature as it lets you operate and function continuously. Having just one bank would mean that your business's payment system would go offline in case the bank shuts down your services.
Domestic and Offshore Options
In most cases, an offshore account is unavoidable because even the most lenient underwriting guidelines can't accept some high-risk businesses and so, merchants have to select an offshore account to conduct their business.
However, a domestic account is the better option because you get to have more security and the rates are also lower than offshore accounts.
There are several choices that a tax resolution merchant has to make while picking out a merchant account for their business, which can be difficult. However, it is best to do the research and pick a service that suits your business well and that has experience of working with similar companies.
This service is one of them and you can get all the best features of credit processing service at the best possible rates. You can contact us for more details or any questions regarding our services.