As a collection agency, you may have noticed that it’s difficult to find a merchant account provider who is willing to work with you. Why is this?
Well, credit card processing for collection agencies is considered high risk for a number of reasons. First, the industry as a whole has a higher-than-average chargeback rate. This is because people often dispute charges when they receive calls from debt collectors.
Furthermore, collection agencies tend to deal with high-risk customers – those who are behind on their payments and may be more likely to default on their debt. This increases the chances that the merchant account provider will suffer financial losses.
Finally, many banks and credit card issuers are simply unwilling to work with collection agencies because of the negative stigma attached to the industry.
Despite the challenges, there are a number of merchant account providers who are willing to work with collection agencies. In this article, we’ll discuss the best merchant accounts for collection agencies and debt collectors.
First, it’s important to understand that there are two main types of collection agencies: first-party and third-party.
Types of Collection Agencies
First-party collection agencies are typically affiliated with the original creditor – e.g., they may be an in-house department of a credit card company or bank.
Third-party collection agencies, on the other hand, are independent businesses that specialize in collecting debts from delinquent borrowers.
Generally speaking, first-party collection agencies are seen as being more reputable than third-party agencies. This is because they’re usually associated with major financial institutions and have established relationships with the original creditors. As a result, they’re often able to collect debts more effectively.
That said, there are a number of high-quality third-party collection agencies out there. And many of them are able to provide excellent service and results for their clients.
When you’re looking for a merchant account provider, it’s important to find one that specializes in working with high-risk businesses. This will increase your chances of getting approved for an account and ensure that you’re getting the best possible terms.
No matter what type of business you run, there’s a merchant account provider that’s right for you. If you’re having trouble finding a traditional merchant account provider, be sure to check out one of the specialized high-risk providers listed above.
Merchant Account Providers for Collection Agencies
Here are some of the best merchant account providers for collection agencies:
– Merchant One:
Merchant One is one of the leading merchant account providers for high-risk businesses. They offer several features and benefits that are ideal for collection agencies, including low fees, high approval rates, and fast funding times.
– Durango Merchant Services:
Durango Merchant Services is another great option for collection agencies. They offer a variety of features designed to help high-risk businesses succeed, including chargeback protection, fraud prevention tools, and quick funding times.
eMerchantBroker is one of the most popular merchant account providers in the industry. They’re known for their high approval rates, low fees, and fast funding times. They also offer a number of other features that can be helpful for collection agencies, such as chargeback protection and fraud prevention tools.
– Payline Data:
Payline Data is a merchant account provider that offers a number of features designed to help high-risk businesses succeed. These include low fees, fast funding times, and chargeback protection. They also offer a free payment gateway and virtual terminal to their clients.
These are just a few of the best merchant account providers for collection agencies. If you’re looking for a provider that can help you grow your business and succeed, be sure to check out these options.
When choosing a merchant account provider for your collection agency, there are a few things to consider.
Things to Consider When Choosing a Merchant Account Provider
Choosing a merchant account provider is a critical decision for any collection agency or debt collector. The right provider can save you money on transaction fees, offer features that streamline your operations and provide excellent customer service. The wrong provider can cost you money, cause headaches and make it difficult to run your business effectively.
Here are some tips to help you choose the best merchant account provider for your collection agency or debt collector business:
- Make sure the provider offers good rates and fees. Collection agencies and debt collectors typically have higher than average transaction volumes and may be charged higher fees by some providers. Be sure to compare rates and fees from several providers before making a decision.
- Look for a provider that offers features that will streamline your operations. Some merchant account providers offer features like automated payment processing, online reporting and customer management tools. These features can save you time and money by making it easier to run your business.
- Choose a provider with excellent customer service. You should be able to reach customer service representatives easily and they should be knowledgeable and helpful. Ideally, the provider should offer 24/7 customer support.
- Make sure the provider is reputable and has a good reputation in the industry. Check out online reviews and contact other collection agencies or debt collectors to get their opinions on different merchant account providers.
- Be sure to read the fine print before signing up with a merchant account provider. Make sure you understand all the terms and conditions, including any fees or charges that may apply.
By following these tips, you can be sure to choose the best merchant account provider for your collection agency or debt collector business. By working with a reputable and affordable provider, you can save money and streamline your operations, making it easier to run your business effectively.
If you are looking for a merchant account provider for your business Balanced Processing Partners are here to assist you in finding the right fit for your business. We offer high-risk merchant accounts as well as other credit card processing options for your business.