Applying for Collection Agency Merchant Accounts

Apr 02, 2014


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

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.

Application Process

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.

Prior History

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 



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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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