If you’ve always wanted to help people reach their financial goals, starting your own credit repair business might just be the perfect niche for you. As with any new venture, one of your first priorities is to create a map to success with a business plan covering your financial, sales, marketing, and customer service goals. As you work to target your potential customer base, one of your most important considerations will be to find the best way to get paid.

Why is credit repair a high-risk industry?

Although your primary reason for starting your business may be to assist your clients in bettering their lives, you are also in this to make a profit. The same is true of the payment processing account provider you choose to partner with. As these vendors vet their potential clients, they work hard to find businesses that seem most likely to represent the lowest possible risk of fraud, chargebacks, and defaults.

As a credit repair company, you are, by definition, working with customers who have had difficulties in the past with credit card debt. As a result, your business automatically poses more of a risk than businesses in other sectors. Like it or not, this will mean that you will undergo more scrutiny and be subjected to slightly higher fees than some of your peers.

Finding the right high-risk merchant account provider.

As you search for the ideal payment processing company for your credit repair business, it is important to understand from the outset that conventional vendors, including Square and Stripe as well as larger banks, will most likely turn you down. Avoid wasting time and energy by immediately focusing on specialty payment processors who have experience working with credit repair businesses. These vendors have expertise in your specific field and are committed to your success.

What will a high-risk merchant account provider do for your business?

Many credit repair business owners make the mistake of signing up with an aggregate payment processor like Stripe or Square. While their application may initially be approved, accounts are generally terminated once the vendor’s underwriter recognizes the number of chargebacks the business is incurring. Without any warning, the merchant’s funds can be frozen and their merchant account suspended or terminated, resulting in stress, business interruption, and customer dissatisfaction.

Whether you operate from a physical storefront, online, or in a hybrid model, it is in your best interests to work with a proven payment processor for high-risk businesses. This company will work on your behalf to negotiate the lowest fees and best rates for a recurring billing merchant account, which will enable you to effectively serve your customers and make a profit at the same time. As you research high-risk providers, thoroughly discuss your unique business needs, making sure that the company has its own in-house underwriter. Some questions that you should consider asking include the following:

• What is your level of experience working specifically with credit repair businesses?

• Are you authorized to approve my type of company for a merchant account?

• What fees will I be expected to pay? Which are negotiable and which are set?

• What payment solutions do you offer? (credit cards, e-check, ACH, mobile payments, recurring billing, etc.)

• Do you offer tools to combat fraud and reduce chargebacks?

Inovio offers secure payment processing for so-called “high-risk” businesses, including credit repair companies. We make it easy for you to sign up and get approved for a merchant account so that you can quickly, securely, and affordably start processing payments. Even though your business operates in a high-risk environment, you still have choices. It is possible to provide financial assistance to your customers while simultaneously making a profit. You just need to have the right infrastructure in place! When you choose the right payment processing for credit repair businesses, both you and your clients can reap the rewards.