If you’re a debt collection agency operating without a collection agency merchant account, chances are you’re probably losing money. Accepting alternate forms of payments, like credit cards, can help increase collection efforts. In some cases, when collecting an old debt, people may already have some of their credit restored, and is the only way they can satisfy that debt to prevent further credit damage / litigation. In other cases, someone may lend them money or choose to help them but with a credit card. Applying for a collection agency merchant account can help boost your company’s profitability and help streamline the collection process. Non-legitimate companies striving to collect old debt will find it difficult to obtain such an account. However, legitimate companies that meet all the legal requirements will find it easy to be approved for, and maintain a successful collection agency merchant account. The onus is on you to find a reputable merchant service provider that can approve, and host your collection agency merchant account.
Why These Account Types are So Difficult to Obtain
- Banks and merchant service providers would usually group a collection agency merchant account with all the other high risk merchant account types.
- Payment processors find it difficult to grasp the idea of a delinquent party paying off a debt with a credit card, as credit cards are usually not issued to parties with a bad credit rating.
- In the event that a debt-collecting merchant is approved for such an account, credit card collections usually mean elevated fees and rates. However, this is not the case with Painless, as we offer merchants some of the lowest rates in the industry.
- If a collection agency is a start-up company with little to no processing history, they usually also find it difficult to get approved for a collection agency account.
Some Pointers When Looking for an Excellent Merchant Provider
- Find a provider that can differentiate between a low and high-risk merchant. They should provide beneficial services like coping with an extensive amount of charge backs and possible fraud.
- Since time is of the essence when collecting old debt, you should opt for a service provider where you’d be able to start processing immediately. Select a provider that offers a walk through and speedy installation.
- Choose a collection agency merchant account service provider that keeps cancelation fees to a minimal. A good service provider should also strive to resolve an issue instead of having you cancel your contract with them.
- The sooner you obtain a collection agency merchant account, the better, so opt for a provider that has a fast turnaround time for account approvals. A great merchant provider will usually take no longer than 3 days to process a normal application. In complicated cases, it should not take longer than 5 days.
- Find a provider that performs credit checks. This is an indication that they deal with reputable financially stable merchant partners.
Painless is a reputable merchant service provider that offers collection agency accounts to qualifying applicants. You’ll be able to conduct credit card processing, check by phone or electronic check processing, and ACH processing if you obtain an account with us.