Having a merchant account to accept credit cards in the payday loan and check cashing industry can make the difference between staying in business or not! However, a vast majority of the acquiring banks that fund credit card transactions will not offer merchant accounts to the payday loan industry. For the payday loan industry, merchant accounts, are notoriously difficult to attain, very expensive, and unreliable. The great news is that Bankcard Brokers is out to change all that by providing merchant accounts to the payday loan industry that are stable, affordable, and provide the famous world class service your business deserves!
First, Why is it so hard to get a merchant account for payday loans?
Well, banks (even those specializing in high risk payment processing) are a conservative bunch. For them payday loans, cash advance services, and title loans are considered to be at the extreme end of high risk due to the industry’s history of default, its exposure to government regulation, and the fact that payday loan businesses customer base tends to be financially unstable. Combine this with some of the poor press that the industry has had in recent years and risk analysts tend to steer away from the industry. These opinions can make it next to impossible for unsecured loan providers to find a merchant account provider willing to work with them regardless of the number of years they have been in business, their ethical standards, and willingness to work with the system. For many banks the perceived risk of the industry is simply too high for them to want to be apart of it and the potential liability.
What liability does the bank carry on a PayDay Loan Merchant Account?
After all you are the one lending out the money so what’s the big deal? Well, according to the Cards Brand’s rules (Visa, MasterCard, etc…) the card payment processing banks, also known as acquiring banks, hold 100% of the liability for all merchant transactions. In other words in the event there are a large number of chargebacks or the state decides a payday loan merchant acts illegally and closes the business the processing bank could be liable for hundreds of thousands of dollars.
Another reason most banks choose to not provide credit card processing services to the payday loan industry is that they consider it a public relations issue to work with high risk businesses such as Payday Loans or other industries such as Adult, Forex, or eCigarette businesses as it may conflict with investors views of what is morally appropriate.
All these “high risk” processing issues and more play into the fact that it can be incredibly difficult to find a dependable merchant account, with good service, and at acceptable rates. In today’s fast paced world being able to accept credit cards is paramount to success so it is important that your business gets the best payday loan merchant account available.
Bankcard Brokers A+ Rated Payday Loan Merchant Accounts are dependable and affordable.
Bankcard Brokers believes in working with full transparency and never misleading or hiding fees. We respect your time as a business owner and work to help you succeed by offering merchant accounts to accept credit cards, debit cards, and ACH payments. With clearly defined and fixed rates on your merchant account for the PayDay Loan, Check Cashing, and Title Loan business we guarantee there will be no surprises when you open your bill. We can even offer our chargeback protection service so you can avoid chargebacks before they even happen. If you would like more information on our chargeback protection program check our BLOG HERE.
Why Bankcard Brokers for your High Risk Payday Loan Merchant Account?
Bankcard Brokers is not just another “high risk merchant account provider”. With over a decade of experience, a fully ETA – CPP (Electronic Transactions Association – Certified Payment Professional) certified staff, transparent rates, and world class service we have earned our outstanding reputation as the industry’s clear leader in high quality, dependable, and affordable merchant accounts. We make the process of getting approved for a payday loan merchant account painless and fast. If you are looking for a merchant account to accept credit, debit, and/or ACH payments at your PayDay Loan business give us a call or Click on the button below and let one of our experienced staff assist you. Whether you are just getting started, a seasoned veteran of the payday loan industry, or trying to re-establish your merchant account after having it closed – Bankcard Brokers has the solution you have been looking for!