Collection agencies are a lucrative business endeavor for any entrepreneur. As an agent of a creditor, you can buy the debt of businesses and pursue the payment of those debts as an independent agent. Banks consider Collection agencies as high-risk businesses. Thus, there is some important information you should be aware of opening a collection agency merchant account.
Merchant accounts are specialty accounts that open your business to receiving credit and debit transactions. For collection agencies, this is important as you want to accept payment from your debtors in as many methods as possible. Credit card processing companies create merchant accounts for handling credit and debit transactions. Transactions move through a payment gateway, which takes the transaction at the point-of-sale, and sends it to the processor.
As a merchant applying for a merchant account, there are some important steps you should take. The first is to find a bank or merchant services provider to open your merchant account. Collection agencies are tabbed as high risk so it may be difficult finding a traditional bank willing to open a merchant account for you. If you find this to be the case, online merchant processors, like eMerchantBroker, may be a possible solution for opening a merchant account. Thoroughly research potential credit card processors to make sure they are reputable and maintain ethical business practices.
The application process isn’t all about future transaction processing. When you are preparing to submit your application you need to collect prior credit history. Gathering previous financial statements and credit history will be important for the success of your application. Important things to check during the application process are the rates, fees, and deposits required to open your collection agency’s merchant account.
Bank Decline You? Look Online
Traditional banks are hesitant to open merchant accounts for collection agencies. They are strict about their standards and are wary of new businesses. If a bank declines your application look online for processors. eMerchantBroker is not only reputable, but they have a team that specializes in collection agency merchant accounts. Using a broad network and years of experience, they can find a processor to get your collection agency on its feet and accept credit transactions in no time at all. The application process is efficient, easy to understand, and user-friendly. Collection agencies may encounter red tape and long waits for opening a merchant account, but not at eMerchantBroker.
Click below to open a Collection Agency Merchant Account with eMerchantBroker