In today’s marketplace obtaining a merchant account for debt collection businesses is next to impossible.
If you are in the debt collection industry then you know that there has been a shakeup in the banking policies that are making it very difficult to find a dependable merchant account to accept credit cards. So what is a debt collector, trying to help a client come good on a debt, to do when they are unable to get a debt collection merchant account to accept credit cards or ACH payments?
Rutherford B. Hayes once said “let every man, every corporation, and especially let every village, town, and city, every county and State, get out of debt and keep out of debt. It is the debtor that is ruined by hard times.” Ironically in order to pay off debt most consumers have to be empowered to make payments with credit cards, debit cards, or electronic checks.
Why is it so hard to get approved for a debt collection merchant account in the first place?
There are a few reasons that the debt collection industry is being persecuted as an extra high risk industry when it comes to accepting credit cards. Primarily the nature of the business and its clients have a large influence on this categorization. The combination of having a business that is often viewed as morally ambiguous and filled with potential for legal issues combined with the facts that:
- Payments accepted over the phone or online are much easier for consumers to dispute
- Often times consumers will make a payment just to get off the phone knowing that they can call into their bank and cancel the payment easily
- The nature of the customers whom debt collection agencies are collecting from are looked at by the banking system as undesirable or untrustworthy
- The debt collection industry as a whole has a relatively high ratio of chargebacks
These facts and opinions mixed with the fact that banks are becoming increasingly risk adverse leads to card brands and underwriting departments to rate the risk as greater than the reward and add debt collection to the growing list of prohibited merchant types.
Bankcard Brokers constantly monitors the pulse of the high risk payment processing industry. Although recent changes to card brand and banking policies are making it more and more difficult for debt collection agencies to accept credit cards – Bankcard Brokers has the dependable and transparent merchant account you have been looking for. Since 2007 Bankcard Brokers has been a leader in transparent and dependable high risk merchant services backed with world class service and have long established working relationships with domestic and international banks who are happy to work with the debt collection industry. If you have had your merchant account closed or are looking for a better more affordable merchant services provider for your debt collection business simply contact us today. We will have your collection agency merchant account set up quickly with incredibly competitive rates and the service that your business deserves!