Performance Card Service (PCS) specializes in high risk payment processing solutions. We have more than two decades of experience helping credit repair businesses apply for, secure, set up and maintain merchant accounts, as well as establish alternative payment methods. If you are in the credit repair business, you already understand the difficulties involved with finding the right merchant account — PCS will help you overcome the challenges.
Payment Processing Solutions for Credit Repair Service Providers
Why Credit Repair Businesses Are High Risk
Credit repair companies serve a very important function: helping individuals and businesses re-establish credit so they can move forward and be successful. Nevertheless, financial institutions look at credit repair as a high risk industry, and many top tier institutions are reluctant to approve credit repair companies for a merchant account. Several factors contribute to this, including:
- Credit repair companies, by the very nature of their business, deal with individuals and organizations with poor credit or no credit and are likely to have limited cash to pay bills. As a result, a credit repair company’s customers are more likely than average to cancel credit card purchases, dispute fees, or resort to other “games” or even outright fraud to avoid payment — all of which increases the chargeback rate well beyond the 2% chargeback ratio banks desire in a merchant account.
- Many credit repair companies use a recurring payment model, which produces a much higher than average rate of chargebacks. Customers often forget they had set up monthly billing, or find that their financial situations have deteriorated and they no longer have the ability to pay. Two important ways to reduce chargebacks on recurring payments: clearly identify the credit card charge that appears on customers’ credit card statements and have a detailed explanation of the cancellation process prominently visible on your website. If your customer isn’t sure what the charge is for, he or she will be far more likely to dispute it. If the customer thinks a chargeback is the only way out, that’s what the customer will do.
PCS Payment Processing Solutions for Credit Repair Companies
PCS will guide you through the rigorous merchant account application process and identify financial institutions likely to have an interest in working with you. Then, we will help you review merchant account offers and select the best option for your business needs. We will also work with you after your account is set up to make sure it is working properly, and you are making full use of all the account features at your disposal.
In addition to merchant accounts, we can help you set up alternative payment options. eChecks, or electronic checks, are very effective in the credit repair industry, since they offer excellent fraud protection and fast settlement, and are familiar to most customers.