Credit Repair Merchant Account

A few bad apples spoil the bunch. Unfortunately, that’s the case in the credit repair industry as well. Unscrupulous companies take advantage of people in vulnerable situations seeking credit repair. While the majority of these types of companies have been cleared out by Federal Trade Commission (FTC), the reputation of the credit repair industry is tarnished and these types of businesses are considered high risk by banks and other financial institutions.

Higher chargeback rates are another reason the credit repair industry is considered high risk. Traditional industries are allowed up to 1% chargeback ratios without causing concern to the banks or ISOs. High-risk credit repair merchant accounts are typically allowed to carry higher chargeback ratios depending on the particular bank or ISO without causing them concern. While high-risk merchant accounts get a little more leeway from banks and ISOs regarding chargeback rates due to the nature of these industries, the merchant fees are higher than more traditional merchants.