Debt Collection Merchant Processor Services
Since debt collection agencies are collecting money from people with financial difficulties, you may be having a difficult time securing merchant services. Chargebacks are often the most important determinant of high-risk businesses so banks often deny debt collection businesses of crucial services, but not with Green Pay. For those in the debt collection industry, we have the solutions you need to process transactions and collect the money from those who owe it.
Once Green Pay confirms your collection agency is operating within state and federal laws, we will set you up with a merchant account that fits the needs of your debt collection company. Your business provides a valuable service and you need to accept credit cards to provide that service. Green Pay is here for you!
Benefits of Using Green Pay for Your Merchant Account:
Benefits of Using Green Pay for Your Merchant Account:
- Major credit & debit card acceptance
- Secure payment gateway and virtual terminal
- ACH & electronic check processing
- Great rates & FREE integration
- Same day funding
- 24/ Customer Relations and Tech Support
- Chargeback insurance available on all accounts
- SSL secured & PCI compliant solution
- & Much More
Finding a suitable merchant account provider for a collection agency
Talk about high risk businesses there are many that might come up on the list. Among them collection agencies are sure to be somewhere on the top of the list. These are the types of businesses that cannot run if there isn’t a reliable merchant account provider backing them up.
Why are collection agencies shutoff by other credit card processors?
When you plan to start a collection agency or if you already have one try approaching a bank or a conventional credit processor. These are great financing sources for any businesses but not for high risk businesses. When a high risk business owner approaches any of these financing sources there are few things that usually happen. The wait time might be too long. First the time taken for the loan to be approved might take days together. Once the loan is approved a background check would be done to check credit scores, the credibility of the business and to check for other risks involved. Risks like large chargebacks are all big turnoffs for conventional lenders. This is what makes it important to approach a suitable high risk merchant. Online merchants in general would have to consider investing on a good merchant account as most online transactions would be done with credit cards and a reliable partner in this would go a long way.
New Business and Startups Approved
For startups, no matter which industry they belong to, the credibility factor cannot be established. This is why startups require special finance sources that would be experts in handling new businesses. So if you are starting a debt collection agency it would be wise to approach a friendly merchant who:
- Offers easier and quicker application process
- Caters to startup/business in all categories
- Can handle large chargebacks
- Has experience in handling ecommerce businesses as these would involve large online transactions
- Can assist handling card not present/ Process over the Phone Merchants
Such features you might find only in some high risk merchant account providers and this is why choosing them can be beneficial for your business. Given the fact that these lenders are used to handling similar high risk businesses you would be able to focus on your business instead of worrying too much about the financial transactions.
High Chargebacks with Collection Agencies
Online merchants, those with payments made for future dated services, those with high chargebacks are all considered high risk. Chargebacks in the collection agency business might be large because of the following reasons: In rare cases there might be fraudulent transactions. This is not an uncommon scenario in collection agency business. These transactions might lead to increased chargebacks When there are credit card payments made then the card merchant provider would be held responsible for transactions. In the cases where a refund is requested the card merchant would also have to undergo additional expenses for the transactions.
If there are technical glitches and connectivity troubles again the credit card merchant would be in trouble. The transaction failure would have to be rectified on time. No matter where the money is held up due to the transaction failure the card merchant provider would have to initiate repayment. The various options and how to choose them: There are domestic options as well as offshore options for high risk merchants. When you have your business running globally an offshore merchant might appear to be a more convenient choice. In spite of the higher rates levied offshore merchants are preferred for some types of high risk businesses. But for a normal business any domestic high risk merchant provider with a good experience would be suitable. These merchant account providers would be offering lower rates which can be very useful for the startups and those businesses that are going through a rough phase. Another positive factor about choosing a domestic merchant is the security. The merchant account provider would be easy to get in touch with and this would make things simpler for the business. For the offshore options there would be some sales criteria to be met as well. Though the company location doesn’t really matter there might be other restrictions to be considered.
High risk merchant account provider for collection agencies
Most collection agencies look for those providers that charge no application fees, offer good discount rates and great approval rates. The processing time is another factor that is considered and a high risk merchant who can speed things up would make the whole process convenient for the business and the customers as well.
Contact one of our account executives to open a merchant account with Green Pay today.