Debt Recovery Business Merchant Processor
Hassle Free& Recovery Guaranteed Merchant Account for Collection Agency. Merchant accounts became the utmost sought, after the wireless credit card terminal was introduced in the late 1990’s. Today the world of processing payments is as complicated as ever. It has become a standard practice for a merchant to accept credit cards even for simple transactions. Moreover, with customers shopping online, merchants have access to virtual payment processing gateways, which allow authorization of sales to be done instantaneously through an E-Commerce website.
Collection agency including a debt collector is a company who is hired to recover funds that have not been received from a customer who has borrowed from the lender but has defaulted payments on:
- Overdue Credit Card balances
- Mortgages and Home Expenses
- Phone bills
- Healthcare and Medical Expenses
- Auto loan payments
- NSF Checks
- First Party and Third Party Collections
Utility payments to name a few, the debt collection agency is entrusted to recover from above examples for delinquent bills. Between the unsavory merchants’ high rates and resorting to threats to the debtor to pay up, it is an open secret that the debt collection industry reputation is at stake. It is a business loaded with risk and its revenue depends on the percentage of debtors pay up and is undergoing lot of reforms. Debt Collection agency cannot function without a merchant account. The uphill task of getting one by these agencies is loaded with risk of rejections by banks. Traditional merchant accounts are not suitable for high risk businesses like the Debt Collection Agency. Hence, the requirement of specialist in the market is required who are willing to work with agencies.
High Risk Processor Options
Experienced High-Risk Merchant Account providers are better versed in dealing with this sector who withdraw credit card processing services once the business is operating. The number of merchant account services are not high in numbers, it is best to shop around and not just go to only one lender who provides services.
What to Look for When Choosing a Provider
Experience in this industry, specialized in debt collection, recovery, debt consolidation with clarity of the business is important. So that, the chances of withdrawing card processing supply are mitigated. Collection is a very tightly regulated business that is subject to stringent rules. It has to be made sure that the vendor chosen for account services is certified to the current standards in Payment Card Industry (PCI). A good 24/7 Customer support is very important. Being a High-risk industry customer dispute resulting in Chargeback’s and refund cases are high. Resolutions to queries and issues of customers are essential.
Investing time to evaluate the best provider services which suits the business is essential. Once the account is set up along with credit card processing and checks solutions via a virtual terminal and payment gateway, the provider offers services including getting payments via phones, grant access to virtual terminal from the acquiring bank.
Merchant portfolios processed and underwritten by banks routinely have a pool between high risk and low risk which are pruned the moment any flag of high risk is raised. Once the Merchant provider like First Data, PayPal discover that the business is of financial in nature and are into Credit restoration, there are chances that the services are ended abruptly and your account is closed. There are ways to get a good customized payment processing gateway that is friendly and suits your business. It is important to choose a merchant service provider who has a variety of companies and businesses similar to your classification.
Get Approved for Your Business Type Fast
An up & running credit card processing account can be activated within 3-5 business days by the credit restoration company. The supply of banks underwriting and supporting credit repair companies is limited as there is always a demand and supply cause in play. This holds good for startup business that have no previous track of credit history. It is imperative for the new business to come up with a business model which has a negotiating power. Documentation with all the necessary approvals will be essential to get a provider for a startup.
Majority of payment processors offer a variety of services. Businesses can apply for a Domestic or Offshore model which best suits their requirement. While the domestic merchant accounts come with a pricing structure which are low, and the time required to process the documents is shorter which gives the business the flexibility to operate more effectively. However, there is always a risk of being shut down or pose limitations in your operations. Offshore model has the benefit of multiple currency processors which increases the customer base for collection agency. Some offshore merchant account holders are potential tax saving as they do not have to pay government fees and taxes using international processing with banks overseas.
Advantage of having merchant account service providers with low cost, ability to accept credit cards, e-checks and virtually all kinds of payments with a good customer service support is a definite yes to increase sales and profit in a competitive market where customer demand payment flexibility.
