Merchant Accounts For Credit Repair
August 22, 2023
In a market where nearly everyone has access to credit, it is common to see individuals from all walks of life weighed down by poor credit. This keeps some people from accessing quality-of-life purchases such as vehicles and homes. As a way to remedy this problem, specialized credit consolidation and repair companies have begun to pop up across the industry. They remediate credit issues for individuals and entities across the world. Based on recent statistics by market firm IBISWorld, there are over 90,000 organizations that exist today servicing the credit repair sector – garnering nearly four billion in revenue. With the ever-increasing convenience of purchasing with cards, it’s an opportune time to get involved in the credit repair industry.
What Is Credit Repair?
In a nutshell, a credit repair business helps customers who are facing disastrous debt situations due to a variety of life circumstances. They may have had multiple credit cards with high amounts of debt or been faced with situational burdens. These could include life changes such as divorce, high-cost health issues, and other unexpected tragedies that rack up bills on credit. Commonly, filing for bankruptcy will damage an individual’s credit to a level that makes it impossible to access large purchases.
Credit repair companies help these individuals by providing services that seek to fix and restore their financial situations following these issues. They offer services such as credit report auditing and inaccurate information correction. Additionally, they consolidate debt and coach individuals. This is a major educational step some families need to improve their financial well-being.
For these companies to operate, they need merchants who can process their financial services. Debt consolidation companies increase each year, and many have taken note of this trend. Credit repair merchant accounts present a unique opportunity for businesses who know how to utilize them responsibly.
A Primer On Credit Repair Merchant Accounts
In order to access this growing market opportunity, it is necessary to have access to merchant account services that operate in debt consolidation. Only a small fraction of the credit repair businesses operating in the industry today are physical locations – the rest are online. While operating online provides flexibility and accessibility to a wider customer base, online-only credit repair merchants are considered “high risk” by larger financial institutions due to the present risk of “chargebacks”.
A chargeback occurs when a bank issues a reversal of a card payment – which means a loss of revenue for the merchant. Not only that, but excessive chargebacks due to poor business operations and standards can lead to a shutdown of the sponsoring merchant. Thus, it is vital that credit repair merchant accounts avoid chargebacks at all costs.
At PayKings, debt consolidation companies can utilize the merchant account services of a company with experience in a variety of high-risk fields, and continue to collect payments with the backing of a stable and reliable processor.
Understanding Credit Repair Merchant Account Codes
The Standard Industrial Classification (SIC) code system identifies and denotes credit repair merchant accounts in both the United States and other countries. These merchants most commonly operate under the following codes:
- 7299: Consumer Credit Counseling Services; Credit Counseling
- 7323: Credit Reporting Services
- 7389: Business Services
- 8748: Business Consulting Services
Those interested in learning more can find a full listing of all SIC codes and designations on the US Department of Labor website.
Credit Repair Merchant Account Services From PayKings
As seen above, there are a lot of opportunities in the credit repair merchant services. It’s a great vertical for those who are willing to understand the industry and operate in a higher-risk industry. If you want to know more about starting and operating a merchant account, our team can walk you through the steps of building a successful and stable account.
With PayKings, you can trust a company with years of experience across a variety of merchant account services, and the expertise required to set up an account service that will thrive in an unpredictable market. As long as companies exist to help individuals recover from financial disaster, there will be a need for processing payments. Don’t miss your opportunity to be part of building a growing industry that is helping individuals around the world. Contact us today to learn more.
August 22, 2023 | Merchants | Dustin