Debt Consolidation Merchant Accounts

Debt Consolidation Merchant Accounts

Need payment processing for your debt consolidation business?  You’ve come to the right place to obtain the processing capacity you need.  NationalACH provides high volume card and echeck processing services to debt consolidation merchants who want to increase profits while reducing payment processing risk.

  • Fast Approvals.  Speed time to market.
  • Competitive Rates & Great Service.  Contact us today for a no-obligation rate comparison.
  • Multiple Payment Methods.  Accept cards, echecks, and ACH.
  • Recurring Billing.  Unlimited customizable recurring payment plans.  Convenient for customers.  Profitable for you.
  • Level 1 PCI-DSS Payment Gateway.  Exceeds the most stringent requirements for secure payment processing.  Military grade encryption keeps your business & customers safe.
  • Extensive Bank Network.  Mitigate risk with high volume processing for debt consolidation merchants.
  • Accept Payments Online. Quick integration to websites and payment pages.
  • MOTO Payments.  Unlimited virtual terminals for processing mail & phone orders.
  • Bulk Processing.  Upload bulk payments in batches to secure servers.
  • Accept Payments from Mobile Devices.   And integrate payments with mobile apps.
  • Integrated with QuickBooks, CRM, and Shopping Carts..  Smooth exchange of processing data enhances productivity.

 

What is Debt Consolidation?

Debt consolidation combines multiple high interest loans into a single loan with lower rates.  All types of loans can be consolidated.  Loans can be unsecured, such as student loans, medical, installment, or credit card loans.  Or debt consolidation can be used for secured loans such as auto or mortgages.

Generally, funds from a debt consolidation loan are used to pay off the high interest loans.  Leaving the borrower with a single loan that has lower-interest and better terms.  Debt consolidation merchants help consumers reduce total debt and pay off loans quicker.  ‘

Debt consolidation merchant accounts can be established for all businesses offering the debt consolidation services including: debt refinancing, debt counseling, debt settlement, loan brokers, student loan relief, and student loan debt consolidation.  


 

Card Payment Processing for Debt Consolidation Merchants

Most debt consolidation merchants accept both card payments and echecks.  Offering as many payment options as possible makes good business sense in order to capture as many orders as possible. 

Card payments are important since cards are preferred by American consumers.  The majority of debt consolidation merchants find debit card payments preferable to credit cards.  Debit cards are tied to bank accounts so many consumers have access to debit cards.  Still, 30% of Americans who have bank accounts don’t use debit cards. 

Credit cards are correlated to credit scores, including past payment history.  Since many consumers looking for debt consolidation are already in financial difficulties, it is not unusual to discover existing credit cards are already maxed out.  And credit scores have been so negatively impacted by debt that no additional credit cards can be obtained. 

In addition, credit card transactions can be charged back up to 180 days after a purchase is made.  Many consumers know this and will dispute a transaction even if the reason for the dispute is not true. In addition to losing the money on the service provided, high chargebacks can negatively impact your debt consolidation merchant account.

Many debt consolidation merchants offer recurring payments, allowing customers to pay over time.  More than 20% of debit and credit cards are reissued each year due to expired dates, lost/stolen cards or data breaches. 

In order for a recurring payment to be approved, updated card information is necessary.  Updating card information is time consuming and expensive.  And no matter how hard you try, you still may not be able to obtain the updated card data.   And you lose the money for the recurring payments.


 

Echeck Debt Consolidation Merchant Accounts

Accepting electronic checks is the best payment option for debt consolidation companies. Electronic checks are a familiar and trusted payment method used by millions of US consumers on a regular basis. Many of your customers do not have cards or are maxed out on cards. Yet 95% of American households have checking accounts and can pay you with an echeck.  

ACH electronic checks are a good option for debt consolidation merchants with low returns & chargebacks.  However, most debt consolidation merchants find it challenging to comply with ACH rules with require revoked transactions (chargebacks) to stay under 0.5% and returns under 15%.  Additionally, many ACH processors will not accept debt consolidation businesses.   

Therefore, debit consolidation merchants are embracing echecks as the preferred payment method due to the far greater flexibility for returns & chargebacks offered by echecks.  In fact, echecks give you greater latitude for returns and revoked transactions than any other payment method.


 

How Electronic Check Payment Processing Works

NationalACH is one of the few companies in the country to offer true end-to-end electronic check processing.  Revokes & returns can be significantly higher with eCheck payments than with ACH or card transactions. 

There are 10 financial institutions integrated with the processing platform.  This ensures high volume processing capacity.  And mitigates the risk of depending on a single bank.  Once your echeck merchant account is approved, you have no caps on volume.  Safely and securely process all the volume you need.

All transactions clear through the processor’s account.  Cleared funds settle to debt consolidation merchants’ bank accounts via an ACH credit, similar to the way card payments settle. 

Echecks are great for recurring billing.  Unlimited customized payment plans are included in all echeck merchant accounts.  Bank accounts rarely change. Recurring payments continue interrupted without the need to update account information. 

Some companies offering echecks simply create “substitute checks” and submit them to your business bank for clearing.  This approach never works for high risk businesses such as debit consolidation merchants. 

Substitute checks have caused many high risk merchants to lose business operating accounts.  Red flags are raised when banks see revoked or returned transactions going through a business account. In addition, many banks refuse to honor substitute checks and will “Return to Maker”, driving up return rates even higher. 


 

Applying for a Debt Consolidation Merchant Account

Applying for debt consolidation merchant accounts is a straight forward process.  An application is submitted along with supporting documents.  Allow 3-5 days for account approvals due to the high risk classification associated with the industry

Supporting documents include:  Color copy of driver’s license or passport for the signer on the account; voided check from the bank to which processing funds will settle; 3 months business bank statements; 3-6 months of payment processing statements; and business formation documents such as Articles of Incorporation of LLC.

It is important that the signer on the account has good personal credit.  If credit is not good, consider adding a co-signer who has good credit to improve the likelihood of account approval.

Be sure that your business bank statements show positive cashflows. Confirm that bank accounts have enough money to support the processing volume being requested. 

Integration of payments to your site or payment page is simple using an API.  If you are taking payments via a website or payment page, be sure everything displays correctly. Test all links.  Confirm everything looks good well, with no glitches.  

Virtual terminals are a standard part of all debt consolidation merchant accounts.  Easily accept mail and phone orders (MOTO).  Bulk processing is also available through batch uploads to the secure banking network. 


 

Tips for Debt Consolidation Merchant Account Approvals

Adherence to the guidelines below help increase account approval.  Underwriters review applications with an eye for best practices, ensuring compliance with consumer protection laws. 

  • Include the right to a three-day cancellation in the contract
  • Initiate services prior to issuing a bill for services
  • Avoid false advertising
  • Do not ask for power of attorney from the consumer
  • Fully disclose fees
  • Give accurate information about the loan consolidation service 

Debit consolidation merchants & student debt relief companies serve a market need.  Debt consolidation helps many people get back on their feet and regain financial opportunities.    


 

Reasons Debt Consolidation Merchants Choose NationalACH

Here are some of the reasons debit consolidation merchants use our payment processing services.

  • Free application with no obligation.
  • Extensive network of banks ensures approval for debt consolidation merchant accounts.
  • Dedicated account manager committed to your success.
  • High volume merchant account specialists. Get the processing capacity you need for your debt consolidation business.
  • Accept payments on your website with an easy-to-install API.
  • Virtual terminal for fast entry of MOTO transactions.
  • Fully compliant processing platform safeguards your business.
  • Free technical support.
  • Verification services keeps returns low.
  • Chargeback mitigation services protect your accounts
  • Unlimited number of customizable recurring billing plans to meet the needs of your customers. While safeguarding cash flow from recurring payments.

Let Us Work for You

Your Success is Our Mission

At National ACH, we’ve done our homework on payments. Use our expertise to get the payment processing capacity you need to manage & grow your business. Our “niche” market is high risk & high volume payment processing. Yet, standard risk merchants also benefit from our services. We are always happy to talk with you, with no obligation. Discover top notch service along with the iron-clad secure processing solutions you are looking for. Payments power your business success.

CHOICE OF MERCHANT SERVICES

National ACH is a one-stop-shop for all your merchant service needs.

Debit Credit Card Processing

High Volume US & International merchant accounts

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ACH Processing

Auto debits your customers’ bank accounts.  Electronically settles funds  to you

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Same Day ACH Credits

Money sent today is received today

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Echecks Processing

More flexible than ACH for high risk merchants

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Want to see NationalACH in action?

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Contact us at 702-323-5761