Merchant Account for Title Loans, Payday Loans, Loan Servicers, Real Estate Title Companies, Foreclosure relief
Any business needs some capital and good planning before it can succeed in a highly competitive world. Businesses need online merchant accounts for all kinds of payments these days. The money market is a risky business and some of these sectors are considered riskier than others. For example, payday loans or loans provided to prevent foreclosure of loans is a helpful and legit business for people in dire need of money. People take advantage of these systems when they need some loans immediately for a short period of time.
But the services providing these small loans and foreclosure relief are considered risky ventures for the following reasons:
People do not understand the complex system and may demand Chargebacks even before the loan is completely paid off.
In case of any other urgent need, they do not pay the recurring installments.
They try to avoid paying these small amounts without realizing the consequences.
Due to payments when the card is not present or payment without signatures on online websites.
They may try to cancel the payments midway if they want to shift to another lender.
Online terminals for all kinds of billing cycles
The small payments of loans lead to recurring billings every month. People have to be reminded electronically and payments may be deducted from their accounts at the set frequency. All this is not possible manually now. The virtual terminals and the proper system and website ensure streamlined operations. The system should be efficient enough to be able to take the load of frequent bills being paid. The merchant account should be completely safe and protected to ensure that their payment is not declined due to wrong chargebacks.
When many chargebacks are involved, large banks want a huge percentage of the amount to be kept as a rolling reserve –sometimes it may be as much as 25%, which is a big dent in the business capital of any company. You need an account that waives off rolling reserves. As long as the payments are happening regularly there should be no requirement of any kind of reserve. Additionally, the check clearing also helps in ensuring the liquidity status of the capital of the company. E-check processing and ACH helps quick funds to come into the account. You need an account provider that can help you in ACH- or automated check clearing even for high-risk credit card holders. The check drafting and similar services are easily available along with check clearing in electronic systems.
Most businesses are conducted online these days and the people who take loans pay through online terminals. The gateways should be able to accept payments from any credit or debit cards- all major cards like Visa, AmEx or Master and Diners club and many more. Ensure that all these services are provided through iPhone and Android apps to make it streamlined for the clients and you can control the operations from anywhere easily. Similarly, they should be able to capture data at the POS and provide virtual terminals for web payment processing.
You do not have to go to the bigger institutions and ask for setting an account and get declined. Do not go anywhere in search for setting up a merchant account as there are smaller companies who will help you in all the matters and you will see that the account is set up quickly without too many complex steps and completely free of charge.
Big banks deny services to risky businesses
Therefore, these businesses are considered risky. Though the merchant account processor has the responsibility of any kind of Chargebacks and the merchant account is accounted for such risky payments but the businesses in certain areas are still not given the merchant accounts by big banks and many financial institutions or they may even shut down the facility if the chargebacks are more than a certain percent.
It is not easy to find a solution of merchant account for businesses that deal in payday loans, or who provide foreclosure relief and are Loan servicers.
You need an account even if you have a risky business
Sometimes the big institutions do accept the application at very high charges and then suddenly stop the payment when they feel that the business is very risky or there are many chargebacks and even shut down the servers. Even if you have been denied or the payment has been shut off suddenly by major processors like PayPal or Stripe etc. Then also you need continuous support of merchant account solutions.
The major banks consider the businesses dealing in loan related small lender business concerns as very risky and refuse to underwrite the services. You require an innovative solution in the form of multiple small banks underwriting your merchant account for improved efficiency. This ensures continuous availability of funds to you even if one bank closes or shuts down the services.
The merchant account set up can be completely free, and in fact, the right company will not even charge any application fee as they realize the financial constraints that you work under. They can help you in setting up the website in the E-commerce world, whether you are a startup or well-established business with a good credit history. You will get the same services delivered to you even if the charges may be different depending on the history of the business.
Today the businesses are run using online websites and all the payments are done using cards and payment gateways. The online transactions mean that the peoples buying your services may not be present to sign the card payment receipt. Sometimes the card is presented in the form of its number and it is not visible in online transactions, whether the card is being used by the rightful owner. All these cases are treated risky instances and the merchant account may be declined by well-known payment gateways. The merchant account should help you set up the virtual terminal with all the major cards including Visa, Discover, and Master cards. The facility will help you in ensuring streamlined payments even when the card is presented in its virtual form without signatures.
Some bigger banks may deny assistance to companies that are registered in offshore countries due to license issues as these are considered high-risk ventures. As long as the company is registered and has a license in some country then they can get a merchant account even though they will be charged a bit more for of shore companies and less for domestic ones.