Credit Repair Merchant Account – Merchant Stronghold
Let’s accept it. Credit repair companies require merchant accounts. So far you often have a tough time acquiring or containing the payment processing volume required to run and expand your business.
Now, life is uncomplicated. Rapidly procure credit repair merchant accounts and see your business flourish.
Various payment processing techniques are obtainable in the credit repair industry. Counting demonstrates solutions to exercise payments even when remit or chargebacks are towering than permitted by the card or ACH networks.
All credit repair merchant accounts in cooperate limitless recurring billing plans. Recurring payments make it easy and bearable for consumers to pay you. Enlarging your profits and steady your cash flow.
In this blog, you will get to know about the positives and negatives of various types of payment processing obtainable to credit repair merchants.
The assistance of Card Processing for Credit Repair Merchants
Card processing credit repair merchant accounts give you the capacity to receive both credit and debit cards.
Cards are the most usable and popular medium of payment for Americans. That is why it is a perfect purpose for credit repair merchants to receive cards.
Still, receiving debit cards, at any moment is attainable, instead of credit cards, which is a great scheme for credit repair merchants on 2 grounds.
Initially, consumers who want help with credit repair often have reached out to their current credit cards and are certified for additional cards.
Secondly thing, both debit and credit cards can be fielded to chargebacks, it is tougher to start a chargeback on a debit card than on a credit card transaction.
The drawback of Card Processing for Credit Repair Merchants
As we have discussed above, both debit and credit card transactions can be chargedbacked. Consumers who are using credit repair companies are mostly in financial crisis. And the desire simply to call the card-issuing bank to start a dispute to neglect having to pay can be considerable.
Too many chargebacks can threaten your card processing merchant accounts. If credit repair merchants cannot stay below the low chargeback ratios placed by the card brands, your account can be abandoned.
Over the top, for recurring billing transactions, both debit and credit card payments need card data to be up-to-date for a recurring payment to be sanctioned. The root cause is that above than 20% of all cards are reprinted each year. Meaning card data needs to be upgraded before the recurring payment is ratified.
Card updating services can be very helpful. If a card is turned down, the updating service naturally communicates the issuing bank to get the most recent info. Apart from this portable tool, only 70-80% of cards can be upgraded. Leaving behind a huge gap in recurring billing revenues.
If a card cannot be automatically upgraded, your customer service staff has to communicate with the consumer for upgraded payment data. Which are time and labor rigorous. And in spite of all the efforts, you still will misplace recurring billing income because you will not be able to get upgrade information on each and every card.
ACH Credit Repair Merchant Accounts
ACH is the best option for recurring billing. Bank accounts rarely change. It is too much of a bother for a consumer to change bank accounts since the straight deposit of wages and payments of household bills are connected to the bank account.
ACH debits are the cheapest method of accepting payments. Rates are 50-80% lesser than card processing since there are no “interchange” rates placed by the ACH network as there are with card brands.
Less cost and recurring billing steadiness are good causes to use ACH over cards. Still, there are problems attached with ACH payments for credit repair merchants.
The ACH network allows reverse (the ACH similar to a card chargeback) to be near about 0.5%. This is just the half amount of chargebacks permitted by the card brands. Making it very tough to gainful continuing a credit repair ACH merchant account.
In addition to it, the ACH network needs that reversed transactions (for example, non-sufficient funds) to be under 15%. Given the nature of the credit repair business, it can be
High Chargebacks or Returns?
How can credit repair merchants that cannot observe card or ACH ratios for chargebacks and returns continue to accept payments while securing existing card & ACH merchant accounts?
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Echecks are the perfect answer. Yet echecks are only valuable when processed accurately to meet the need of the credit repair industry.
The term echecks is used typically to explain the different methods of debiting payments from consumers’ bank accounts. Many processors declare
Sd./s’process echecks for credit repair merchants really cannot. Which in the end causes major effects and injury, which includes loss of revenue, to credit repair merchants.
Lots of companies advertising echecks as a payment method for credit repair merchants simply create “replacement” checks. The substitute or replacement checks go through scanning, couriering, mailing, or sending through express delivery to the merchant’s own bank account for clearing. This doesn’t have good working for credit repair merchants.
Banks do not like to see reversals and returns running through a business account. When this takes place, the accounts are warned and closed. Which makes it a nightmare for credit repair merchants as they disorganize to immediately look for a new operating account with another bank.
Amazing Method for Credit Repair Merchants to Process Echecks
What is the perfect method for credit repair merchant account with high cancelations and returns to accept electronic checks? The best answer and solution is to process payments with an echeck processor who assume liability for returns & revokes.
Cleared funds are resolved to the credit repair merchant’s bank account through an ACH credit, like the way card transactions resolve. Securing your business bank operating account.
Because echecks are processed outside of the ACH or card brand networks, there is specifically good sufferance for high revokes and returns. Providing credit repair merchants the capacity to take more payments without taking tension about putting that on risk with card and ACH merchant accounts.
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How to Utilize Echecks to Secure Your Card & ACH Merchant Accounts
The towering risk for chargebacks, reverse and returns happen for the first time a consumer reimburses you. For recurring billing, the risks are significant for the first recurring billing transactions.
Credit repair merchants can evaluate new customers by accepting echecks for a few start-up payments from a customer. Once the customer is evaluated and the credit repair merchant gives confirmation there are no chargebacks, revokes or returns, the customer can be transformed either to card or ACH payments.
More Benefits of Accepting Echecks
Card and ACH merchant account suppliers set up monthly caps on volume, restricting the dollar amount that can be processed and suffocating growth. Echecks rejects these hurdles.
When your check credit repair merchant account is sanctioned, unlimited processing capacity is accessible to you. More than ten banks are linked to echeck platform.
There are important advantages to you of having many banks on the back end.
Multiple banks make sure you always have processing backup. If a single bank takes a decision to exit the high-risk ground, there are many other banks linked with the echeck payment processing stage. Processing runs consistently, with near about no risk to your account.
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Merchant Stronghold is one of the only merchant account providers in the country that gives out credit repair merchants multiple payment options to boost profits, decrease risk, and secure processing accounts. Including a Demonstrated way to deduct the risk of high chargebacks, revokes, and returned transactions.