Best Credit Credit Repair Merchant Account

Credit repair businesses constitute a well-established industry of their own, estimated to see $3.4 billion in revenue in 2022.

The credit repair industry, however, is challenging in that its customers may be facing extreme financial hardships. It may be difficult to collect payment from them by nature.

Credit repair businesses often charge customers to attempt to remedy their credit reports or resolve some other issues relating to the credit bureaus. They perform these services at a fee and some customers will want to fulfill this by using a credit card.

A credit card processing company can give credit repair businesses the ability to accept credit cards as a form of payment.

Our Top Picks for Credit Repair Credit Card Processors:

Easy Pay Direct
Specializes in credit repair businesses and other high risk industries. Offers ‘Load Balancing’ to reduce risk.
Domestic accounts have zero early termination fees.
Variable contract terms.
High risk tolerance.
Single point of contact for multiple merchant accounts.
Public pricing is available.

summary

5/5

Best for

E-commerce companies, SaaS companies, "high-risk businesses", & established small/medium businesses ($500,000+ in annual sales)

Specializes in

Easy Pay Direct has unique gateway software and banking solutions to optimize payments for eCommerce, SaaS, information products, supplements, and CBD amongst other verticals.

Pricing Summary

Setup Fee:  $99

Monthly Fee: $24.95

Swipe Rate: 1.59% + $0.17

Keyed-in Rate:  2.39% + $0.29

Early Termination Fee: $0 (domestic accounts)

Contract Terms:

1 Year 3 Years
PaymentCloud
Offers chargeback protection management to help minimize and prevent chargebacks.
No setup fee.
No monthly fee.
Every business has a dedicated account manager to serve them.
Merchants have access to around the clock seven day a week support.
Account setup within twenty-four hours.

summary

4/5

Best for

High-Risk Merchants

Specializes in

High Risk

Pricing Summary

Setup Fee: None

Monthly Fee: None

Swipe Rate: Unknown

Keyed-in Rate: Unknown

Early Termination Fee: Unknown

Contract Terms:

eMerchantBroker
High risk specialists boasting quick approvals, reasonable rates, and access to business funding if needed.
Works with any size high risk business.
No setup fee.
Variable rates depending on the merchant's volume.
Merchants are notified whenever a fraud or chargeback occurs.
Checks are allowed to be accepted from customers.

summary

4/5

Best for

eMerchantBroker is best for any size business that is considered high-risk. It's considered one of the top payment processors for high-risk businesses that would otherwise have difficulty finding a standard merchant account provider. 

Specializes in

eMerchantBroker specializes in credit repair, collections agencies, adult websites, travel and timeshare, firearms and guns, bankruptcy and bad credit, online and in-person smoke shops. They also work with electronic cigarettes and other companies that fit into the high-risk merchant account category.

Pricing Summary

Setup Fee: $0

Monthly Fee: Undisclosed

Swipe Rate: 3.00% + $0.15

Keyed-in Rate: 4.00% + $0.25

Early Termination Fee: Up to $595

Contract Terms:

1 Year 3 Years

What is Credit Card Processing for Credit Repair Businesses?

Credit card processing gives a business the ability to accept additional forms of payments including:

  • All Major Credit Cards including Visa, Mastercard, American Express, and Discover
  • ACH and eChecks
  • Contactless payments
  • Digital wallet payments like Google Pay and Apple Pay

Providing a variety of payment methods adds convenience for your customers and helps you get paid faster.

Unfortunately, credit repair businesses are classified as high risk businesses by credit card processors. The most popular payment processors do not extend accounts to these types of businesses.

That doesn’t mean it is not possible for a credit repair business to process payments.

There are several reputable payment processors who are well established and provide excellent service to this market.

What Makes a Business High Risk?

There are several factors that go into determining the risk a business poses to a payment processor. Each company may use a unique formula to determine the actual risk.

There are common factors that credit repair companies share that typically categorize them as high risk.

Average Ticket Dollar Amount

Typically, credit repair businesses have a high average ticket dollar amount per transaction.

That means each transaction amount is higher on average compared to other businesses.

This makes a business more of a risk because if a cardholder initiates a dispute or chargeback and the credit repair business is unable to fund it, ultimately the payment processing company is on the hook for refunding that person.

Obviously, the larger the dollar amounts and total volume of charges, the more risk the payment processor is taking on.

High Number of Chargebacks

Chargebacks, or reversals of credit card transactions, tend to be more common in credit repair compared to other industries.

This is sometimes due to the fact that credit repair companies tend to have their customers set up a recurring billing plan and may cancel it shortly after a payment is collected.

Since the payment processing companies are aware of this chargeback statistic, they must account for it by charging higher rates to those clients.

Cardholders in Financial Distress

The customers of credit repair services are in need of these services due to unfavorable credit or financial situations and are looking for options to alleviate their situations.

These customers may not be completely honest or considered reliable to fulfill their debt obligations based on their past history.

They may be more likely to dispute charges than other industries’ customers.

These factors and more contribute to credit repair services being considered a high risk industry.

Things to Consider When Choosing a Payment Processor

Rates and Fees

We could dedicate an entire article to describing the different fees you may encounter when comparing payment processors.

As a business owner, you want to select the provider that makes the most sense financially while still meeting your business needs.

We suggest reviewing account requirements, and rate and fee schedules carefully to ensure you are aware of what to expect.

Some common rates and fees to look out for:

  • Transaction fees: Each payment processor has a different structure for how they collect fees per transaction. Most commonly a percentage of the transaction is assessed plus a small flat fee per transaction. Small differences in these rates can add up over time and impact the true cost of payment processing for your business.
  • Chargeback fees: Payment processors often assess a flat fee when a chargeback occurs. Some may add additional fees if you reach a certain amount of chargebacks.
  • Termination fees: If you are agreeing to a contract, which is often not short-term for credit repair companies, be sure to ask what termination fees would apply if you choose to cancel your contract.

Fees and rates should all be printed transparently for your review.

Recurring Billing

You may find it easier to set up customers on a recurring payment plan in order to streamline payment collection.

Of course, these systems are not foolproof as customers can cancel their payments but overall, you will see a higher rate of success in collecting payments.

Make sure that your payment processing company offers this feature so you can implement it if you choose.

This option is a bit more sophisticated than basic credit card processing and requires holding on to customer card information.

Security and Fraud

Piggybacking off the last point, credit repair services often experience higher levels of fraud compared to other industries. Since your business deals with customers’ personal information, it may be a target for cyber thieves.

When you are choosing a payment processor, inquire as to what safety measures they employ to protect your business’ data.

The Payment Card Industry Security Standards Council provides regular guidance on steps that card processors and businesses should follow in order to maintain security.

These best practices are known as PCI Security Standards.

These practices include using a point-to-point encryption solution (P2P) which makes data difficult to use even when stolen.

Another layer of security is making sure to maintain a secure network locally so outsiders cannot access the transaction information.

If a payment processor complies with these minimum standards they are said to be PCI Compliant.

Interestingly, credit card repair service businesses can also be fraudulent themselves.

The Consumer Financial Protection Bureau recently released a report where they detailed how this industry is subject to dishonest business owners who do not actually help repair customer credit and ultimately wind up with complaints against them.

In addition to this, the Bureau notes there are complaints against the credit unions for not responding to third party attempts to rectify credit errors.

Hopefully, additional measures will be taken to differentiate errors and allow credit repair services to be able to operate effectively.

In the meantime, choosing a payment processing provider that is well versed in the latest security measures is extremely important for the credit repair industry.

What to Expect when Applying for a Payment Processing Account

Every payment processor sets their own application process and they can vary greatly between companies.

Most companies have the ability to provide an online application but there may be additional steps required after the initial submission of basic information.

Application Documents

When applying for a high risk card processing account, you may be asked to provide some additional documents to verify your company’s financial history.

These may include:

  • Personal Identification
  • Bank Statements
  • Tax Returns
  • Past Transaction History/ Processing History (if applicable)
  • A Credit Check

Some companies boast a quick turnaround time for approval (or denial) so be sure to ask for the expected timeline.

There may be additional documents required so ask the processor what you need to gather before applying.

Application Fees

Sometimes a payment processor may charge an application fee to even have their business considered.

This is due to the nature of the additional time and resources needed to scrutinize a credit repair account.

There may alternatively be an approval fee. This is a fee that would only be collected in the event that your company is approved for an account.

There may also be no fees related to the application process at all!

Additional Tips and Considerations

A lot of factors go into deciding which company to work with. Ideally, whichever company you choose to work with will work closely with you and be an integral part of your business. Here are some additional tips to help you choose the right one.

Be Honest!

Since the credit repair industry is considered high risk, traditional payment processors will often not extend an account to these businesses.

We strongly advise against trying to deceive a payment processor when applying for an account. They will undoubtedly discover your misrepresentation very quickly after your account is established and ban you as a customer.

It may be tempting to conceal your company’s financial history or chargeback rate, but your financial patterns will be evident soon after your account is established.

Sometimes, providing a narrative or explanation for the history can help the company get a better picture of your business practices.

Customer Service is Key

If something goes wrong with payment processing, having someone in your corner will be invaluable to your business.

Whether you need someone to troubleshoot your system or help you dispute a chargeback, having a company that is easily reached is important.

Look for a company that offers access to live help during the hours you may need it.

Some companies offer 24/7 live help while others only are available during business hours.

You should also look for a company that has multiple ways to reach them. Some accomplish this through methods like phone, email, and live chat features online.

It is worth taking the time to do a quick Internet search to see if any recent reviews have been posted about the processor.

Sometimes reading through reviews can bring to light a factor or flaw that you may have not considered. Conversely, positive reviews can also be the determining factor in which company you decide to proceed with.

You can also check with the Better Business Bureau to see if the company has an established listing and if there are any current complaints against the processor.

Value-Added Features

In high risk credit card processing, some companies offer services that set themselves apart from others.

For example, Easy Pay Direct offers a unique feature called ‘Load Balancing’ in which instead of one large account, your transactions are diverted into a few accounts to spread out the risk.

In this way, the risk to the processor is reduced as each individual account has a lower dollar value limit.

Another processor PaymentCloud features Chargeback Protection Management in which their software allows the user to detect and manage disputes more easily.

Of course, experience is always a priceless added value. eMerchantBroker specializes in high risk accounts and can advise on the best solutions for a high risk card processing account.

Final Thoughts

Credit repair services are considered a high risk industry and business owners may find it challenging to establish a credit card processing account.

There are several processors who are experts in servicing these types of businesses and can help your business meet its needs.

When comparing companies you should consider rates and fees, features offered as well as the level of security offered by the processor.

Be transparent in your business practices and history to achieve the best results in an account that works for you.

Each processor may offer features geared toward assisting high risk businesses so you will need to explore what options are available.

Having a company that provides excellent customer service while also having an established record of working with businesses in this industry will be invaluable should any need for assistance arise.

It may be tempting to settle on the first processor that is willing to approve your business for an account but it is worth taking the time to compare options, rates, and services, especially since your business will rely heavily on this service.

We recommend these payment processors for credit repair service businesses:

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