Student Loan Doc Prep Payment Gateway
Loan modification merchants are deemed as high-risk ventures, and that can lead to obstacles when they are looking for a merchant account to help increase their business and facilitate their customers. If you're also a loan modification merchant, you shouldn't have to pay higher rates than usual so that you can accept payments from your customers easily. Student loan modification dealers have a way out of all this as there are high-risk merchant accounts available.
The truth is that there is a need for student loan modification by many people. When students complete their education and enter professional life, they may want to get rid of their student loans as quickly as possible and that would require them paying extra, so loan modification becomes necessary. On the other hand, some students may want to decrease their monthly payments if they are not employed or are only working part-time. In any case, student loan modification merchants can help you fix your loan situation.
These loan modification merchants are not magicians and will not make your loans disappear, but they can give you more financial control and help you fix your student loan situation to the best of your preferences.
Denied by Other Credit Card Processors?
Many merchants get denied by banks and credit card processing services for a merchant account because of the prevalence of the fraudulent activities in high-risk businesses. This can lead to high-risk businesses such as student loan modification dealers to settle for high rates and get poor terms in return. You just don't want to fall into that trap because the truth that you will not get from these demanding credit card processors is that there are affordable rates and profitable terms available, even for student loan modification companies.
Due to strict underwriting rules, credit card processors end up rejecting dozens of applications on the grounds of the high-risk status of several industries. Sadly, loan modification is one such industry. Banks and credit card processors will offer you assurances at first so that you may pay expensive application fees only to have your application rejected later on.
However, you can get a merchant account for your student loan modification firm as there are high-risk merchant accounts available that are specialized in dealing with cases such as yours.
Risk Analysis of the Loan Modification Industry
The reality is that the loan modification industry is not in the most stable position or its strongest state, and the high-risk status further endangers the survival. Not only is its total revenue low, but the number of people employed as well as the number of merchants and firms offering loan modification services are also low.
The high risk associated with loan modification firms is because the clients come in with unrealistic expectations but do not always get the best deals despite the honest efforts of a loan modification merchant.
This mainly leads to chargeback, which is exactly what credit card processors despise. Their high-risk status is only further elevated by the reality that not every student loan modification dealer is offering a genuine service.
Phone / MOTO / Online Merchant Services
Online student loan modification services are also prevalent these days. You can get loan modification services online to improve your student loan situation so that you may be able to make payments that are more suited to your financial situation. You can get student loan modification services after you pay their fees directly.
However, this means that loan modification merchants will have to receive online payments from their clients and prospects. This requires a virtual terminal so that the customers can easily send the payments without disclosing their confidential details or providing a pin or sign on paper. A virtual terminal allows the online customers to send payments directly without having to submit any details or sign a form.
Whether your loan modification firm works online or you are just looking to improve the level of service you are currently offering, having a merchant account is of utmost importance.
Type of Merchant Account Required
As we discussed earlier on, loan modification merchants need specialized credit card processing services to operate because of the high-risk status, such as this one. However, to make sure you are picking the right option, you need to know what to look for in the merchant account that you are signing up for. So to make sure that your new merchant account offers all the services you are looking for, here is a list of features that your merchant account service should offer.
The application process should be simple, and it's preferable that you fill out an online form as it's more secure. The application or setup fees shouldn't be a part of the deal, and you should look for a service that accepts applications free of cost. If these fees are in the picture, they should be minimal.
Make sure you're getting ACH check processing services as well so that your customers get more options to send payments. Another feature to look for is the option of multiple underwriting banks. This ensures that your service is operational at all times. Fortunately we offer both ACH and credit card/debit card such as visa mastercard discover amex at multiple underwriting banks for increased volume and high volume processing.
Domestic and Offshore Options
In some cases, having an offshore merchant account becomes unavoidable. There are some high-risk businesses that even the softest of underwriting guidelines do not accept, so such merchants may have to set up an offshore merchant account to conduct their operation.
For loan modification merchants, having a domestic merchant account is preferable because you get better rates than the offshore account, and it is a much more secure option.
Options to Consider
There are not many choices available for student loan merchants when it comes to selecting a merchant account and finding the right one can be a difficult process. However, it is important to conduct some research and pick out the merchant account service that fits your bill and offers all the features, affordable rates, and a reliable service.
Make sure that the service has prior experience of dealing with your industry so that it understands exactly what services you require.