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Merchant Account for the Credit Repair Business


Debt reduction, credit counseling services, and credit repair companies are considered high risk by most of the merchant account and credit card processing service providers. This is the reason they have to pay high rates and fees just to accept payments. It's true that the credit repair industry isn't in a good condition. It's surprising considering the large amount of debt that an average US household is in. US consumers find themselves in $11.91 trillion of debt. Despite that, credit repair is on a low and the struggle the business has to go through to get a merchant account further adds to their woes.

However, for a credit repair business, finding the right credit card processing service can make a huge difference. If you also offer tax resolution, credit repair, and credit counseling services offline or online, you'll want to make sure that you're getting the best services possible for your merchant account. In case you're a startup and looking for a merchant account to start with, you'll want to read on.

Denied by Other Credit Card Processors?

This is a common occurrence considering the state of credit repair and the fact that it is deemed high risk by most credit card processors. This can lead a credit repair business to settle for a credit card processor that demands high rates and taxes and offers poor terms.

The lack of benefits and services that you face despite paying a lot to these credit card processors is another problem. In most cases, however, banks and credit card processors straight up reject the applications on the grounds of high risk, despite offering assurances and making you pay a hefty application fee.

All of this can be very frustrating for an ordinary credit repair business owner. There's a solution, however, and that solution is that you can reach out to a specialized service such as this to provide a merchant account for your high-risk business.

Risk Analysis of the Credit Repair Industry

The fact remains that the credit repair industry is not in the strongest position right now, which further adds to the risk involved in this business. The total annual revenue for the credit repair industry is just around $6 billion. The fact that there are only 135,701 employees spread over 123,010 companies shows that this industry is not blooming. In fact, the credit repair industry has shrunk by 5.2% in just the last five years.

Even in the existing industry, there are mostly only small businesses and no single company owns more than 5% of the revenue generated by the credit repair industry. However, the average US citizen pays 9% of their total income in interest every year.

All these statistics prove that the credit repair industry is not in the best shape and lacks even one publicly traded company. Even the largest companies only generate revenues in millions and are staffed below 100 people.

Online Merchants

Online credit repair services are not uncommon these days. It's fairly easy to get credit counseling online to fix your credit. These services will provide online help if you pay their fees.

For these credit repair businesses to receive online payments, they need a virtual terminal that online customers can send their payments to. That's where a merchant account comes in. If your startup is based online (which it should be because online is the way forward) or if you're looking to expand your services to the internet, having an online merchant account is a must. This service will provide you one at an affordable rate.

Type of Merchant Account Required

As discussed before, credit repair companies are considered high risk and often end up paying huge fees for their merchant accounts. That being said, it's important to understand that there are certain features that you need in your credit card processing service to ensure smooth running. In short, you need a particular type of merchant account for your credit repair startup.

Make sure your merchant account is capable of handling recurring billing. This is very important for running a successful credit repair business. Recurring billing will enable you to bill your clients on a monthly basis so that you don't have to call them every time. This service provides merchant accounts with this feature.

There are many services that offer merchant accounts without any application or setup fees. Even if you do pay these fees, make sure it's not a hefty amount.

A simple and easy application process will make your life easier. Make sure you're able to fill out all the basics online securely and safely.

The ability to make payments via ACH or check processing is another service you'd like to have as it's crucial for credit repair companies to receive payments.

Make sure you find a merchant account with several underwriting banks so that even if one bank stops providing its services, others will be able to ensure that your business keeps running.

Domestic and Offshore Options

In some cases, having an offshore account is necessary because even the most lenient of underwriting guidelines are unable to accept such high-risk businesses. In these cases, offshore serves as a good option.

However, having a domestic merchant account is a much better option because it provides more security and the rates are much better as compared to offshore. It's important to find a service that will provide you both options and recommend what's best for your business.


There are many merchant account options available and it can be difficult to find one that's ideal for your credit repair business. We recommend that if you're working in a high-risk industry such as credit repair, you should do your homework and find one that is the best for you.

Having worked with many credit repair merchants in the past, this service is well equipped to handle your business and its credit card processing needs. You can contact us for more information and ask us if you have any questions.

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