Student Loan Merchant Accounts

Student Loan Merchant Accounts

Are you looking for a student loan merchant account?  You landed in the right place.    Quickly set up student loan payment processing accounts and watch your business grow.

  • Competitive Rates.  Top notch technology combined with low rates.  Contact us today for a no-obligation rate comparison.
  • Fast Approvals.  Most student loan merchant accounts are approved within 3 days.
  • Accept Payments Online.  Easily integrate student loan payment processing with your website and mobile apps.
  • Unlimited Virtual Terminals.  Securely accept mail /phone orders (MOTO).
  • Multiple Payment Methods.  Accept cards, ACH and electronic checks. 
  • High Chargeback Processing Solutions.  High chargebacks or returns?  No problem. Special solutions are available for you. 
  • High Volume Student Loan Merchant Accounts.  Obtain the processing capacity you need to grow your business.
  • One-time or Recurring Payments.  Accept single payments.  Or set up recurring billing plans to make it easy for customers to pay you over time.   
  • Verification & Chargeback Mitigation.  Help keep returns and chargebacks under control.   
  • Secure Student Loan Merchant Account Gateway.  Safeguard your business with safe, compliant student loan payment processing. 
  • Superior Customer Service.  Highly trained professionals.  Get the help you need when you need it.

Student loan merchant accounts are a great solution for companies and professional service providers offering any type of student loan or debt relief.


What are Student Loan and Student Debt Relief Services? 

Student loan debt relief services help restructure terms and conditions of loans, making it possible for borrowers to continue to make payments rather than defaulting.  For example, as part of student loan debit relief, rates may be adjusted, or time-frames extended in order to give borrowers greater flexibility in paying back the loan. 

Services offered by student loan debt relief firms are important.  Adjusting the conditions of student loans helps prevent foreclosures, repossessions, or penalties for non-payment.  Modifying the terms of student loans can help avoid bankruptcy.  Affordable pay-back plans mitigate damages to credit scores and give borrowers the opportunity to reestablish financial stability.

Is there a need for student loan debt relief?  You bet there is. 

Forbes reports that total US student debt stands at $1.52 trillion.  More than 44 million Americans owe money on student loans. 

The average college student has close to $40,000 in outstanding student loan debt upon graduation or withdrawal from college.  Many students owe much more. 

Students who graduate often find it to obtain jobs in their fields.  Without good jobs, people with student loans have difficulty keeping current on payments.  Creating a vicious circle of debt that negatively affects their lives.   


What is a Student Loan Merchant Account?

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

Student loan merchant accounts give businesses the ability to accept payments electronically.  Student loan payment processing accounts make it easy and convenient for borrowers to pay you.  While enhancing your cash flow and streamlining business operations.

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


Card Processing Loan Modification Merchant Accounts

Debt cards are preferable over credit cards for student loan merchants. Debit cards reduce payment risk and are the option of choice for most student loan merchant accounts.  When a borrower pays you with a debit card, funds are deducted from the debtor’s bank account. 

Accepting credit cards increases your student loan payment processing risk.  The reason is simple to understand. 

Credit card payments are associated with borrowers’ already fragile lines of credit. The fact that borrowers are seeking to restructure student loans means the borrowers are in financial trouble.  Therefore, credit cards are often unavailable or are credit is maxed out.

A credit card payment can be charged back up to 6 months after a payment is made.  Chargebacks negatively impact your cash flow.  And if credit card chargebacks exceed the ratios required by the card brands to stay in compliance, your student loan merchant account could be shut down.

If a borrower does not have the money to pay you, the borrower can initiate a chargeback to try to avoid paying.   “Friendly fraud” is common for student loan merchants.   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.

Credit cards can be accepted through student loan merchant accounts.  However, most student debt relief companies prefer to accept debit cards rather than credit cards. 


Special Electronic Check for Student Loan Merchant Accounts

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

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.

Special echeck student loan payment processing accounts are available for companies that need greater flexibility for returns & chargebacks. NationalACH is one of the only companies in the country to offer this special electronic check merchant account.  Allowing you much higher rates of chargebacks & returns than any other payment method.. 

All echeck payments are cleared through the payment processors’ account.  The processor assumes liability for chargebacks & returns.  Cleared funds are settled to your business bank account in a similar manner as card payments settle.


Echecks Superior to Cards for Recurring Billing

Student loan merchants often offer recurring billing plans to make it more convenient for borrowers to pay in installments rather than a lump sum.  Electronic checks provide compelling benefits over card payments for student loan merchants. 

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

Each year more than 20% of debit and credit cards are reissued due to expired dates or lost / stolen cards.  Another common reason for card re-issuance is due to data breaches that occur, as regularly reported in the news.   

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, recurring transactions decline.  And you lose the revenues 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 direct deposit of wages are linked to bank accounts.   

Bank accounts are extremely stable over time.  As a result, when a payment is made with an echeck, it is rarely necessary to update payment data. Recurring payments continue to flow without interruption or need for get updated payment information.   As a result, cash flow is stabilized, and recurring payments continue with no loss of revenue. 


Applying for Your Student Loan Merchant Account

Application for a student loan merchant account is always free, with no obligation. Our goals is for you to obtain fast approvals with the best possible rates and terms. 

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

Supporting documents include: ID for the signer on the account; current processing statements, if applicable; voided check for the bank account where processing funds will be settled; current bank statements and company formation documents.

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. 

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

Student loan merchants with online operations need to have fully-functioning, secure websites.  The underwriting team will check all pages to confirm pages load quickly and display properly.  The team also checks to see that  customer service contacts are clearly displayed along with privacy, refund & other polices.

Sometimes, 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 as promised.

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 student loan merchant accounts offer you greater flexibility for chargebacks than do card accounts.

It’s also common for the underwriters to conduct a google search for reviews of the company.   Do this yourself before applying so you’ll see what’s showing up. Of course, no company has top notch reviews all the time.  Still, if you do run into negative reviews, take a minute to respond in a polite and positive manner.  This shows you care about customer service and your online reputation.

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


Once the student loan merchant account is approved, your MID (merchant account ID number) is issued.  You’ll receive a secure message from the payment gateway giving you login credentials.  And you can start processing immediately.


Why Choose Nationalach For Your Student Loan Merchant Accounts?

Put our expertise in high risk processing to work for you.  Below are reasons student loan 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 student loan merchant 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 student loan 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 student loan 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.


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 855-562-ACH2