High Risk Payment Processing for Doc Prep Merchants

Document preparation merchant accounts.  Accept payments quickly and easily.  Fast approvals.

Who are Document Preparation Merchants?

A lot of paperwork is required to apply for student loans, loan rate reductions, loan modifications, debt relief and debt consolidation, Many consumers do not have the time nor skills necessary to prepare the documents in the correct form. 

Document preparation merchants are companies with the specialized knowledge needed to correctly complete required documents.  Consumers engage doc prep merchants to assure that the paperwork is prepared accurately and precisely.   

Why Doc Prep Merchants are Classified as High Risk

Document preparation merchants are classified as high risk by acquiring banks and processors.  There are two main reasons for the high risk classification.

First, consumers who are applying for student loans, loan reductions, debt relief, modifications and consolidations often have money challenges.  When monetarily stressed, consumers look for relief. 

As a result, consumers initiate chargebacks even if the service was performed as promised by the doc prep merchant.  This is known as “friendly fraud”, although it is certainly not friendly. Rather, the consumer is attempting to get out of paying for the service and get it for free.

Card issuing banks frequently side with consumers over doc prep merchants when a chargeback is initiated.  After all, the consumer is the customer of the bank and the bank makes lots of money from the consumers who use cards for payments, particularly on the interest earned on unpaid balances.

The second reason for a high risk classification is that document preparation merchants often accept payments by phone.  MOTO (mail / phone orders) transactions statistically have higher chargeback ratios than payments initiated online or payments that have written authorization. 

Echeck processing for Doc Prep Merchants

Because document preparation merchants often have high chargebacks, maintaining the low chargeback ratios required by the card brands and ACH network is extremely challenging.  Despite the best efforts, many doc prep merchants exceed the chargeback rate required by the card brands and the ACH network.

In these cases, our special platform for processing electronic checks is of great value.  The platform allows for significantly higher chargebacks than any other form of payment. 

All transactions clear through the echeck processor.  Cleared funds settle to your bank account through an ACH credit.  Chargebacks can be 3-6x higher than what is permitted by the card brands or ACH network. 

Once your echeck account is approved, you can process as much volume as you need.  There are no caps on volumes.  Unlimited processing capacity means you can grow your business with no worries about payment processing.

Debit Card Processing for Doc Prep Merchants

Most Americans have a debit card associated with their bank account.  In fact, debit cards are used twice as often than credit cards by US consumers.

Depending on the network through which debit cards are processed, cards can still be charged back.  Some issuing banks will treat a debit card dispute in the same way as a credit card and initiate a credit to the consumers’ account.

Other banks have stricter requirements for chargebacks against debit cards. If a debit card holder calls the issuing bank within 2 days, liability is limited to $50 or $500 if the consumer disputes a payment within 60 days.  After 60 days the debit card holder is responsible for the payment with no recourse.

In these cases, it is much difficult to chargeback a debit card transaction than a credit card.  A great deal of documentation is required.  The chargeback process is time-consuming since it is up to the consumer to prove that a transaction was not authorized, or the service was not delivered.  

ACH Payments for Doc Prep Merchants

ACH is the lowest cost method of accepting payments for document preparation merchants.  There is no “interchange” involved in ACH processing as there is with card payments.  Therefore, rates for ACH merchant accounts are 50-80% less than card payments. 

The downside of ACH payments for doc prep merchants is that the ACH network has an extremely low tolerance for revokes (the ACH equivalent of a card chargeback) and returns.  Revokes must be less than 0.5% and returns less than 15%. These low ratios make it challenging for doc prep merchants to successfully obtain or maintain ACH processing accounts. 

In addition, many ACH providers do not accept document preparation merchants due to industry type.

Credit Card Processing for Doc Prep Merchants

Credit card processing is the least effective method of accepting payments for doc prep merchants.  It’s so easy to chargeback a credit card transaction that chargebacks can quickly endanger credit card processing accounts. 

Many document preparation merchants work with customers who have financial issues.  Therefore, the temptation to initiate a chargeback is strong.    

Obtaining and retaining credit card processing is challenging.  Few banks are willing to take on doc prep merchants.  And if they are willing, high monthly volumes are required.  And fees are higher than other types of payment processing.

Conclusion

Doc prep merchants can certainly obtain processing. 

Processing payments through our specialized echeck platform allows for higher chargebacks and returns than any other form of payments.  Unlimited processing capacity makes it easy to grow your business

Debit cards are helpful to accept since Americans do love to pay with cards.  Still, depending on how the card is processed, chargebacks can still be an issue.

ACH is a good option if you can keep chargebacks and returns low.  This may be difficult for some doc prep merchants.

Credit card accounts are the least effective payment method for doc prep merchants.  The ease of charging back a credit card transaction can result in chargeback rates that exceed the card brand ratios.  And ultimately endanger your credit card merchant account.

Why Choose NationalACH For Your Doc Prep Merchant Accounts?

Put our expertise in high risk processing to work for you.  Below are reasons document preparation merchants choose us.

• Competitive rates with fast approvals.
• Free application with no obligation.
• Extensive network of banks. Set up a single account.  Or diversify processing with multiple accounts. 
• Superb customer from highly trained account managers dedicated to your success. 
• High volume merchant account specialists. Get the processing capacity you need.  
• Fully compliant document preparation payment processing gateway exceeds standards for secure transaction processing. Military grade encryption protects your business and your customers. 
• Free technical support. Get the help you need when you need it.
• Unlimited customizable recurring billing plans. Recurring payments are a convenient way for customers to pay you.
• Verification services help keep chargebacks and returns low.
• Fraud-fighting weapons & chargeback mitigation services safeguard your processing.

Contact us  today to set up your doc prep merchant account.