Collection Agency Merchant Account Services

Merchant Account for COLLECTION AGENCY / Debt Collection Debt Brokers

The ability to accept multiple payment methods is one of the biggest advantages of having a merchant account. In the case of debt collection agencies, the job is tough. The money here would have to be extracted from parties who failed to payback their loan instalments on time. So, the chances of getting timely payments are low. The transaction size tends to be quite high in most cases. Money management is made simple for the debt collection agencies if there is a dependable merchant account created.

Collection Merchants, Commercial, Medical, Credit Card, Payday Loans

Debt collections agencies operate online or some of them have a physical office. Online merchants in general, no matter which industry they belong to, are seen as high risk bets by most of the banks and credit card processors. The online businesses that have turned out to be scams have caused a bad reputation to the industry on the whole. Debt collection business itself is seen to be a highly risky unstable one. There are large debts from bad clients that are being dealt with by the debt collection agencies. The history of higher chargeback rates is very common in this business.

There have been a few debt collection agencies that are known to resort to unethical ways to extorting the debt amount. These handful companies, lead to a bad reputation for the industry on the whole and just another factor that makes the credit card processors reject the merchant application of such businesses.

There are plenty of cases where the credit card payments made by the debtor doesn’t get through. This is also a situation where the chargeback rates are high and to safeguard the debt collection agency from the losses the credit card provider works with multiple underwriting banks to take care of the transaction and to tally the losses.

Do not give up if a credit card processor shuts you off

When you are trying to open a merchant account for the first time, for your debt collection business be ready to face rejections. You would be surprised to know that most of the popular credit card processing companies, no matter how big they are, refuse to work with debt collection businesses. Sometimes they prolong their processing time or even come up with massively exaggerated rates for the merchant account. This can turn out to be a costly decision especially if you have just started your business. Sometimes, if the credit card processing company does get you through the application procedure, the account might then be shut down if any risky business transaction takes place. This is when your account would be locked till further processing is done and you would have to face the losses and also lose the credibility of your business. Remember that the High Risk vs Low Risk labelling might also vary based on the business type and the Rates Vary by Startup vs History of your business. To tackle all such roadblocks come the high risk merchant providers.

We are happy to assist startups

High risk merchant account providers are those who have plenty of experience handling debt collection agencies and other similar businesses who are deemed high risks. They can easily handle any size of chargeback without imposing very high rates on the debt collection company. Even if there is a startup with no credit history or a debt collection company with bad credit performance in the past or high chargeback situations the high risk merchant would be able to take up the application. The high risk merchant service provider will also assist you in integrating the ACH Processing/Check Processing transactions besides handling the conventional Visa/Mastercard/Discover/Amex and other payments. To begin with, you would be able to complete the application process in a few simple steps with a little amount of paperwork and without any hiccups. As there are no setup fees you can save money in this place. Once the application submission is complete, you can make use of the friendly customer service option to make the best use of your merchant account and to tap the features of the account. You would be able to get support on the gateway setup so as to channelize secure transactions for your business and avoid the cases of transaction failures that lead to losses. Finally, based on the size of your business and the location where your business operates, you would be able to choose between domestic and offshore accounts.

Domestic accounts vs. offshore accounts- making a decision

There are various jurisdictions that are different in different countries for the same type of business. This means that based on the laws the rates charged for the merchant account and the ability of easily establishing a merchant account also varies from one country to another. Whether it is for this purpose or for the purpose of diversifying your business account risks by relying on multiple banks used in offshore accounts, you would be able to find plenty of advantages in using an offshore account. With a domestic account, on the other hand, the structure and the process are very simple. Any new business and small business owner would find domestic accounts to be cheaper to open and also more convenient and secure to work with. There is also the option of extending your account and opening an offshore merchant account later on when your business transactions call for it.

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And, Yes...Nothing Upfront No Setup Fees!

Sign up for our credit card processing service and UBC will provide you with a merchant account and payment gateway for no setup fees, free of arge!

Your High Risk Merchant Service will be setup with banks that are friendly towards your industry. No need to worry about getting closed for a prohibited business type. We are 100% upfront with the bank and they will review your company, account and business profile before approving it.