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Top 3 Reasons Why Your Credit Repair Business Needs A Money Back Guarantee!

By: Daniel Rosen Last updated: February 7, 2017

Credit Repair Business Needs A Money Back Guarantee.jpgAs a credit repair specialist, you cannot guarantee that all of your client’s negative items will magically vanish from their report, so it’s important to explain this clearly to your clients and to offer them a money back guarantee. Many newbies just starting are terrified at the thought of giving refunds. If that’s you, relax and have an open mind, and you’ll see how this idea is beneficial to the well-being of your business.

We asked Roger Chlowitz, Director of Business Development at Payment Cloud, the biggest provider of merchant accounts for credit repair companies, for his expert perspective on money back guarantees. Here’s what he had to say:

“We recommend that credit repair companies have a refund policy. It’s way better to offer a money back guarantee than get chargebacks, which will cost you your merchant account."
-- Roger Chlowitz, Payment Cloud

Here are the top 3 reasons why your credit repair business needs a money back guarantee:

  1. Promoting a money back guarantee will bring you more signups and greatly increase your revenue.

    With a Money Back Guarantee, potential clients will feel more comfortable to sign up for your service. Because they feel comfortable at having no risk, they are far more likely to sign up. This is how you grow and scale your business (and your client list) faster.
  2. An angry client will get their money back anyway.

    An angry customer can file a complaint at their credit card company with 1 phone call (or 1 click). This is called a chargeback. When a chargeback is filed, the customer’s bank takes the money from you and gives it back to the client. It doesn’t matter if you’ve had them sign an agreement or a charge authorization. All they need to do is say a few magic words to their bank, like “This was not authorized” or even worse “The product was damaged and not as described.” When you receive a chargeback, that money gets taken from you without notice and your payment gateway charges you a fine (ouch!). And even worse, if you get too many chargebacks, you will lose your merchant account and be out of business. In a chargeback situation, your client will always win, so it’s far better (and less costly) to just give a refund rather than argue with them.
  3. Refunds save time, remove stress and improve your reputation.

    Most “normal” people will never ask for a refund, but there are those one-off pain in-the-butt customers who are just looking for trouble and it's always best to just give a refund them immediately so they go away peacefully without bashing your business or filing a chargeback with their credit card company. Sure it’s painful, especially if you’re a new business, but the good will you create will come back to you 1000%. Your reputation is everything (and so is protecting your merchant account)..

You’re not alone.  Bad customers and chargebacks happen to EVERY business


My friend is the manager of a fancy hotel in Bel Air, California, the elite area that’s next to Beverly Hills (but much fancier). His hotel caters to movie stars and billionaires. 

One day we began to talk about Chargebacks and I was shocked to hear that he gets them, too!

Hotel guests will file chargebacks for their hotel room charges and for their lobster meals in the restaurant, giving them a free vacation. But before you start to get ideas that this is how to live like a king for free, remember that there is also the rule of Karma. (i.e. If you do bad things, then bad things will happen to you — but if you’re good and nice, the universe will always reward you). 

The good news is...

Having a money back guarantee and a refund policy are good and important for your business, your merchant account...and goodwill. If you take care of your clients, communicate well and try your best to give awesome service, your business will grow and  your chargebacks and refunds will be under 1%.

When a client asks for their money back, don’t take it personally. Give it to them immediately, wish them well, shake it off, take a deep breath and focus back on growing your business and being awesome!

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