Starting a credit repair company can be a lucrative business that will ultimately help a great number of people. However, collecting payment for services rendered can be difficult due to the fact credit repair companies are issued a high risk merchant account status. High risk accounts will have higher fees that can eat up profits, but trying to circumvent the system by falsifying an application for a merchant account is not an option. It can cost a lot of time and money in the long run. The following are 5 steps for new credit repair companies 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 who have promised credit repair services, taken a client’s money and then disappeared. This has made it difficult for legitimate companies, especially new ones.
2-Take the time to find at least three companies that offer services for a high risk merchant account. Compare fees and get ready to do some research on each company. Do not 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 current clients of the company and ask how they feel the merchant account service is.
4-Once a company has been chosen, it is time to start the application process. The application is fairly straight forward. However, a good credit rating helps ensure a new credit repair company will be granted credit processing services. It can take several weeks or months for the approval to come through. Follow-up phone calls and emails may be necessary to check on the status of an application for a high risk merchant account.
5-Before signing any documents, read every word. Make sure the payout dates and frequency of payouts are explained clearly. Understand there may be a longer holding time for applicants with a newly established business or an applicant who has less than stellar credit.
The process can be expedited by ensuring all the necessary documents are sent in with the application. Recommendation letters may be required for some applicants. It is a good idea to get these done as soon as possible. Do not let the difficulty in obtaining a high risk merchant account deter you from starting a credit repair business.