It is increasingly difficult for collection agencies to obtain a merchant account due to the high risk assessment associated with the debt collection industry. General processing companies such as PayPal won’t accept high risk clients at all. At Painless Processing, we believe as a collection agency you should be able to process electronic checks and credit card payments through a merchant account, just like any other business, even if your company is brand new and you’re exploring your options for the first time. It’s important to know what type of collection business we are able to accept for this type of account.

Eligible Businesses

  • Any collection agency that has contracts with corporations to collect delinquent accounts regardless of whether those accounts are private individuals or businesses.
  • Attorneys and law firms collecting on their clients behalf are also eligible.
  • A processing history works in your favor but is not absolutely necessary.
  • Our collection agency merchant accounts are not available for companies that purchase charged-off debt and are attempting to collect these debts.

Important features to look for in a High Risk Merchant Account Provider

  • ISO/MSP Registration – An ISO (Independent Sales Organization) or MSP (Member Service Provider) is not a bank, but independently registered and accredited by banks and credit card companies to be able to process card payments.
  • A high Better Business Bureau rating that reflects good business practices and a minimal amount of registered complaints.
  • PCI compliance ensures the highest safety standards concerning credit card and personal information. Your merchant account provider should give you all the information and support you need to bring your business into PCI compliance.
  • Check for competitive rates and fees. While fees for a high risk merchant account may be greater than for a regular one, it is still possible to find reasonable rates even in these business areas.
  • A Painless Processing Merchant account offers you these benefits:
  • Guaranteed approval to all US based qualified collection agencies.
  • Rapid processing of check 21 and ACH collections. A quick turn around time helps keep your business rolling.
  • State of the art virtual terminals and gateways make online business easy. We help you accept all major credit cards as payment options online as easily as by phone.
  • Advanced, PCI compliant security features. Our gateways are secure and fully PCI compliant. In addition we can help you achieve PCI compliance at your end as well. This helps secure your information as well as that of the debtors you work with.
  • Check verification as protection against financially distressed debtors. Check guarantees that protect your assets.

Collecting debts by charging credit cards or utilizing electronic check transfers can expedite the collection process and streamline your business flow. With more solutions available to you, the potential of collecting debts successfully also increases. You do not have to rely solely on check collection anymore.


Obtaining a merchant account as a collection agency or law firm should not be an unsurmountable obstacle. There are plenty of options available to you and we offer competitive solutions at Painless Processing. Please contact our payment processing experts today to apply for your collection agency merchant account.

Click To Find Out What The Bank REALLY Requires!