Debt Collecting May Go Back a Few Steps, If Bill Is Passed

May 26, 2015

North Carolina is looking to backtrack on debt collection-consumer rights. In its new attempt to appease businesses, legislators are trying to make it legal for businesses and collection agencies to not give every bit of debt disclosure to consumers. This could either give way to a better system, or lead consumers into a darker path. We all know that debt collectors are not well liked, and this possible legalized lack of transparency will not help their image.

If you are a debt collector merchant, you need to make sure to keep an eye on North Carolina’s attempt at this new law. It may impact your business, but it might not be a good change. Debt collection merchant accounts are considered to be “high risk”, and if you are not currently using a high risk merchant account provider, such as EMB, you may find yourself with a merchant account. If the industry begins to look shaky, traditional merchant accounts and alternative payment processing accounts, such as PayPal, can close your accounts with little notice. You need to take care to find out your debt collection merchant account provider’s stance on any upcoming changes to the industry.

Industry changes come fast, and sometimes there is little notice to the industry, so it is a good idea to have a knowledgeable debt collection merchant account provider to keep you on top of changes. Often times, merchants are not alerted to changes, but processors are, thanks to industry-insider literature and new laws that they must implement. Another thing is that you need to make sure that your debt collection merchant account provider lets you know of upcoming changes, so that you can alert your customers and so no one will be surprised. This potential change in North Carolina is something that consumers should be notified about, and only a few great debt collection agencies will go to the trouble of doing it. Even though the industry is not well liked, you still need to have good customer service and your staff needs to treat debtors with respect. Alerting them to upcoming changes is one small way of doing so.

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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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