Loan Modification Merchant Account

Loan Modification Merchant Accounts

Accept card and echeck payments quickly and easily with loan modification merchant accounts.

  • Fast Approvals. Start processing quickly to boost cash flow.
  • Competitive Rates. Contact us today for a no-obligation rate comparison.
  • Multiple Payment Methods. Accept payments online; phone / mail order (MOTO); mobile devices & apps; or batch upload files in bulk for processing.
  • High Volume Loan Modification Merchant Accounts. Get the processing capacity you need to manage & grow your business.
  • Single or Recurring Payments. Convenient for customers.  Profitable for you.
  • Verification & Chargeback Mitigation. Help keep returns and chargebacks under control.   
  • Secure Loan Modification Merchant Account Gateway. Protect your business with safe, compliant payment processing.
  • Superior Customer Service. Professional team dedicated to your success.

Loan modification merchant accounts are a great solution for companies offering all types of loan modifications including home loans; student loan / student debt relief; auto loans; and consumer loans.  Bankruptcy attorneys, tax attorneys, loan modification attorneys; civil attorneys and other professionals also benefit from loan modification merchant accounts.


 

What do Loan Modification Companies Do?

Loan modification firms help restructure terms and conditions of loans to make it possible for borrowers to continue to make payments rather than defaulting.  For instance, rates may be adjusted, or time-frames extended in order to give borrowers more flexibility in paying back the loan. 

Services offered by loan modification firms are important to borrowers.  Adjusting the conditions of secured loans help avoid foreclosures, repossessions, or penalties for non-payment.  Modifying the terms of unsecured loans can help avoid bankruptcy.  Establishing affordable pay-back plans may also help mitigate damages to credit scores and give the borrower the opportunity to reestablish financial stability.


 

What is a Loan Modification Merchant Account?

Borrowers pay loan modification companies for restructuring the terms & conditions of their loans. In order to accept payments efficiently, loan modification firms establish loan modification merchant accounts.

Loan modification merchant accounts give companies the ability to accept payments electronically.  Making it easier to accept payments is convenient for customers.  And enhances cash flow while streamlining business operations.

Cards and echecks are the most common electronic payment methods used by loan modification merchants.  Most loan modification companies accept cards and echecks because Americans use both payment methods.


 

Card Processing for Loan Modification Merchant Accounts

Debt cards are preferable over credit cards for loan modification merchants.  The reason is easy to understand.

The fact that borrowers are seeking loan modification means they are in financial trouble.  Therefore, credit cards are often unavailable or are maxed out.

Most importantly, a credit card payment can be charged back up to 6 months after the payment is made.  This puts both your cash flow and your merchant account at risk.  Borrowers often do not have money to pay and initiate a chargeback to avoid having to pay. 

For example, “friendly fraud” is common in the loan modification industry.  Here, a borrower seeks to avoid payment by claiming the service was not adequate, was not delivered as promised, or a myriad of other reasons.

Chargebacks are damaging in two ways.  First, you lose the money that is owed to you.  Secondly, high chargebacks can cause your merchant account to be terminated.  If this happens, it impacts your ability to obtain other card processing accounts.

Therefore, debit cards are the option of choice for most loan modification merchant accounts.  When a borrower pays you with a debit card, funds are deducted from the debtor’s bank account. 

Debit cards reduce payment risk.  Whereas credit cards increase risk because credit card payments are associated with borrowers’ already fragile lines of credit card with credit card issuing banks.


 

Echecks for Loan Modification Merchant Accounts

Electronic checks debit payments from your customers’ bank accounts.  Cleared funds are settled to your business bank account.

Echecks loan modification merchant accounts give you far greater flexibility for chargebacks and returned transactions than do card payments.  Electronic check processing is governed by the Uniform Commercial Code (UCC) and well-established US check guidelines.  Whereas card payments are controlled by the card brands.  

NationalACH is one of the only companies in the country that offers true electronic check processing.  Transactions clear through the processors’ account.  The processor assumes liability for revokes & returns.  Cleared funds are settled to your business bank account via an ACH credit.

This way of processing electronic checks gives you the ability to have significantly  higher returns and revokes (chargebacks) than either ACH or card processing.  ACH rules only allow 0.5% revoked transactions.  Credit card processing permits only 1% chargebacks.  As a result, echeck payment processing is the gold standard for loan modification merchants who experience high revoked and returned transactions.  .  

Be careful when shopping for echeck processors.  Some electronic check processors create substitute checks and send them to your business bank account to clear.  This never works out well for high risk merchants, such as loan modification companies.  Banks flag & then close business accounts when returns and revoked transactions run through an account on a regular basis. 

Surprisingly, many borrowers do not have debit cards.  Yet, more than 95% of US households have bank accounts & can pay you with echecks.  In addition, Americans often choose to pay bills with echecks rather than cards.


 

Echecks Superior to Cards for Recurring Billing

Loan modification merchants offer recurring payment plans to make it easier for borrowers to pay in installments rather than a lump sum.  Electronic checks provide compelling benefits over card payments for loan modification merchants. 

Why are echecks better than cards for recurring payments?  Consider these facts.

Each year more than 20% of cards are reissued due to expired dates or lost / stolen cards.  Another major reason for card re-issuance is due to data breaches that are becoming more & more common.    

When a card is reissued, you need to update card information before a recurring payment is approved.  The process of updating card information is labor and time intensive.  And despite all the effort, you may still not be able to obtain the necessary updated card data. 

If you are unable to get the updated card information, transactions will decline.  And you lose the revenues you would have received from the recurring payments.

Echecks are the most reliable method of processing repayments.  And expose you to less risk than card payments. 

The reason is simple.  Bank accounts rarely change.  It’s a major hassle to change a bank account.  Payments for household bills are frequently linked to the bank account.  And wages are direct deposited to bank accounts.    

Bank accounts are extremely stable over time.  As a result, when a payment is made with an electronic check, it is rarely necessary to update payment data. Recurring payments continue to flow with no interruption nor need for manual intervention.  As a result, cash flow is stabilized, and revenue leakage is prevented. 


 

Applying for Your Loan Modification Merchant Account

When you decide to move forward with an application, a dedicated loan modification merchant specialist is assigned to you to guide you through the process.  The goal is for you to get the quickest approval possible with the best possible rates and terms. 

Applying for a loan modification merchant account is a straight forward process.  You simply submit an application along with supporting documents.  .

Supporting documents include:  Incorporation or LLC information: ID for the signer on the account; 3-6 months of the most current processing statements, if applicable; voided check for the bank account where processing funds will be settled; and 3 months of the most current bank statements.

It’s a good idea to use a signer on the account with good personal credit.  Otherwise, consider adding a co-signer who does.  Have enough money in your business bank account to support the monthly processing volume you are requesting. 

A complete application package is important for a quick approval.  Account approvals can be as fast as 1 day although most approvals take 3-5 business days due to the high-risk classification associated with the industry . 


 

How Underwriters Review Loan Modification Merchant Account Applications

The first step in underwriting an account is a complete review of the application.  Information is verified for accuracy. 

Loan modification companies with online operations must have a fully-functioning, secure websites.  Before sending in the application, be sure all pages & links are operating correctly.  Ensure that customer service contacts are clearly displayed along with privacy, refund & other polices.

Often, underwriters will “cold call” or email customer service to see how inquiries are handled.  If phone calls are forwarded to voice mail, include your company name and when the caller can expect a response in the voice mail message.  If autoresponders are used for email, include the same information.  Then respond to all inquiries in a timely fashion.

Processing statements are reviewed with an eye to chargebacks.  If chargebacks are low, that’s great.  If they are edging up, it helps to include an explanation of the reason in the application file.  Echeck loan modification merchant accounts offer you greater flexibility for chargebacks than do card accounts.

It’s also common that the underwriting team will do a google search on your company.  Do this yourself before applying so you’ll see what’s showing up. Naturally, no company has top notch reviews all the time.  And this is especially true for high risk merchants.  Still, do the best you can to respond to any negative reviews in an upbeat and positive manner. 


 

Why Choose NationalACH For Your Loan Modification Merchant Accounts?

Put our expertise in high risk processing to work for you. Get approved fast Below are reasons loan modification merchants report for choosing us.

  • Fast approvals with competitive rates.
  • Free application with no obligation.
  • Extensive network of banks. Diversify processing to mitigate risk.
  • Superb customer service experience from highly trained account managers. 
  • High volume merchant account experts. Get the processing capacity you need.   
  • Fully compliant payment platform exceeds standards for secure transaction processing.
  • Free technical support. Get the help you need when you need it.
  • Unlimited customizable recurring billing plans. Recurring payments make it easier for debtors to pay you.
  • Verification services help returns & chargebacks low.
  • Fraud-fighting weapons & chargeback mitigation services safeguard your processing.

Contact us  today to set up your loan modification merchant account. 

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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Contact us at 702-323-5761