We are the unusual business account management provider able to partner with collection agencies. We work with high-risk companies to provide payment processing systems that are hard to find somewhere else.

We allow credit and debit card fees for debt collection agencies, debt buyers, corporate collection agencies, and other debt collection companies and industry segments.

We do so while still including a slew of incentives that aren’t available at any bank or merchant account service, such as:

• Quick approvals
• Approval rates are high
• Setup of a fee-free account
• Programs for chargeback security
• There are no purchase level limits

You get quick clearance, set up your shop quickly, and start taking credit, debit, and e-check payments in no time.

Why is it Difficult to Find Merchant Accounts for Collection Agencies?

Some market sectors are highly complex to gain clearance for merchant account services. Merchant account service providers typically are reluctant for companies who feel they are “high risk” to offer processing services.

Corporations that fall into the class include those who view or provide an increasingly complete and dangerous operation as part of their business model, like debt collection agencies, with a significant amount of credit or debit card transactions.

Risk of Debt Collection Agencies for Merchant Service Providers

Most credit card providers will not have merchant accounts to payment companies and immediately deny all debt collectors’ applications. These merchant account suppliers have a good reason: debt collection is a specialized industry with a high chance of failure. Credit card processors will often opt to eliminate this risk.

When customers make deposits for goods or services and later challenge the charges with their credit card provider, friendly fraud chargebacks occur. When a chargeback is accepted, the credit card issuer is liable for steep fines. As a result, many processors try to escape industries where friendly fraud chargebacks are popular.

Individuals who are in debt can have bad credit or a limited amount of cash on hand. As a result, it is not unprecedented for a delinquent to pay a debt collection service and then challenge the fee with their credit card provider. 

This strategy helps these people to keep their cash deposits and, in the near run, get the debt collectors off their backs. Since credit card firms are obliged by statute to reverse all contested charges until the retailer who billed the charges can justify their validity, the dishonest debtor often prevails throughout this case.

When charges rise, any organization is less lucrative to service a credit card processor. Credit card processors look for dealer accounts with a rate of two or lower chargeback in most cases. Processing companies mark and cancel “high risk” accounts with higher chargeback rates. Industries like debt collection have so many risky accounts that it is easy to locate merchant services.

The Importance of the Debt Collection Industry

Any consumers have difficulty paying on time. It is possible. Mainly when the economy is at a low level, it has become routine. Unfair debt or unpaid tax is inevitable, regardless of the market, and unpaid loans will hinder its growth because cash flow is significantly limited.

At some point in their life, all small and large companies have poor debts. While the latter can manage this scenario comfortably, smaller companies depend on debt reimbursement to thrive. The insufficient accumulation of debts will, in difficult situations, result in a company bankruptcy due to a lack of cash flow in critical operating phases.

In the debt collecting process, debt collection agencies play a vital role. They can save time and money, have good relationships with unpaid customers, and, most importantly, reduce debt risks to ensure your company’s longevity.

Merchant Accounts for Collection Agencies

A few processors can deal with debt collectors and even those who often select and choose according to company structure or reliability. It is challenging for start-up debt collectors to create commercial accounts because processors of credit cards tend to see payment records from high-risk enterprises like theirs.

Our application process is straightforward and less stringent, allowing you to obtain the authorization you require, especially though the company is new or takes on more risky debt. We are ready to take on even more risky customers in part due to our safeguards.

Chargeback Protection for Collection Agencies

Chargeback security services are vital to both the high-risk customers we represent and us. Credit card providers are required to reverse contested credit or debit charges until the merchant can provide evidence of validity.

The issue is that most companies lack the tools and know-how to track payments and keep an eye out for chargebacks. As a result, even though the merchant’s charges are entirely legal and the merchant can show their validity, the chargebacks can also go out without question, as most debt collection companies can.

These services help you detect transactions, challenge them, reduce transaction costs, and save you from the high fees that generally contribute to the termination of merchant accounts by credit card processors.