In case you run or are starting a debt collection business you need a reliable credit card processor at low cost rates. unfortunately, that’s turning into increasingly more difficult to do.
in case you’ve been within the enterprise for any time, the everyday cycle for a debt collection employer to undergo with respect to their credit card processing needs is to first go through an aggregator like Stripe or PayPal. The advantage to these agencies is that they carry out very little underwriting, so even though they do now not quite simply receive debt consolidation businesses, you can usually get regular and accepted quickly. The disadvantage, but, to the use of that aggregator kind money owed is that after you unavoidably have a chargeback, or develop your business beyond say, $20,000 according to month, those aggregators will start to investigate your commercial enterprise. when they do, their most common response is to freeze all of your funds, for a hundred and twenty days, and that they offer little customer service during the interim.
That is when debt collection businesses start seeking out a real direct MID Merchant Account service provider. After calling a number of low risk providers and being turned down or rejected, they’ll understand they need a High Risk merchant account, otherwise, they’ll fall into the same cycle of getting to inform half of-truths to the credit card processor, getting found, and having funds frozen. if you’ve commenced the quest for a high-threat processor that accepts debt consolidation corporations, you’ve found out that there simply aren’t many, or even fewer that offer dependable credit card processing at less costly charges.
Why is Debt Collection Considered High-Risk?
this is due to the fact the debt collection enterprise is appeared as extraordinarily high Risk, due to the enterprise’s traditionally high chargeback rate. The purpose for this, is fold: (1) the inherent nature of the business is that humans are paying cash they’d as an alternative now not be paying. some of the ones people will always initiate a chargeback, and (2) a few debt collection corporations who didn’t recognize the way to manage chargebacks, or who weren’t operating with a informed high-risk processor and payment gateway that would assist them manage and avoid chargebacks, have given the complete industry a bad reputation. no matter all this, however, thankfully, there are nevertheless a few true alternatives.
Offshore Debt Collection Merchant Account Service
Merchant Stronghold works with a number of processors and gateway providers with sponsor financial institution relationships that offer both domestic and offshore debt collection merchant accounts. we are able to offer credit card processing for debt collection companies under the following two options:
Requirements for US Debt Collection Merchant Account:
US based company representative.
US based company entity
US bank account
Business operations can be based globally
Debt Collection Business Benefits:
Through our processing partners, we can also offer debt collection businesses the following additional benefits:
Expert in underwriting
Same day approvals
Compatible with Ecommerce portal and major payment gateways
Acceptance Visa / MasterCard / American Express etc.
MOTO (phone / mail), eCommerce, and swipe accepted.