Bail bonds are a popular line for a business opportunity, but they come with higher risk than many other companies, making the business classification high-risk, meaning high street banks won’t offer you the services you require.
It doesn’t mean that you have no options, you do, you just need to apply for a special bail bonds merchant account. EMB merchant account providers specialize in your high-risk business option.
It is difficult to set up credit or debit card facilities with a high street bank; the business carries a high risk for the banking institutes to even consider your business as an option. This is due to the nature of the business, high rates of chargeback and potential for unpaid bills.
Opting for a merchant account provider doesn’t take too long to process; you should have a decision within a few days as long as you have applied for the right merchant account. They should not charge you for set up fees, they must have great customer service and the rate they charge for the transactions on the account must be great too.
There are expected areas that you will have to ensure that you stick to including keeping your chargeback rate as low as possible, ideally you don’t want this to go over the 3%.
Bail bond companies are growing and they are becoming the normal option for those people who just don’t have the money to cover their bond. Unfortunately, once they are out of jail it is not as easy to ensure they pay the agreed amount, which leaves these companies with the potential of large debts.
Therefore, while it is possible to go into business and set up a merchant account, it is important that you understand the risks involved and the potential to lose money. This is just one reason why the classification of the business is high-risk, it is important to go this route only if you are sure of the rules and regulations and are happy to take the risk.