The market research firm IBIS World reports that the debt collection industry represented a $13 billion market in the US as of May 2013. There are a bit more than 9.000 businesses in the industry that employ over 150.000 people.
The majority of Americans use loans, credit cards, lines of credit to pay for their lifestyles. The overall household debt for an average family increased by 11% during the last 10 years. This is according to the 2016 American Household Credit Card Debt Study by Nerd Wallet.
Debt Collection Agencies
When people stop paying, unpaid debts are sent to collection agencies These agencies go after debtors to recover the money for banks and creditors. Since debt collection merchants are considered high risk, traditional banks and other financial institutions usually try to stay away from this type of businesses.
A collection agency merchant account is classified as high risk for a number of reasons. These businesses are associated with a higher rate of risks related to payment processing and a large volume of chargebacks. So, it’s no surprise that banks often deny them merchant accounts.
If your business has been turned away and you need to process credit card payments, you can turn to a reputable merchant account provider like emerchantbroker.com. EMB is voted the top high risk processor in the US and has an A+ rating with the BBB. Moreover, EMB is rate A by Card Payment Options.
Debt Collection Agency Merchant Account from EMB
To get a reliable and low-cost collection agency merchant account, you just need to turn to emerchantbroker.com. EMB serves both traditional and high risk businesses, and has already helped thousands of hard-to-approve merchants to get the best for their business.
With EMB, you can enjoy chargeback management tools, payment gateways, and fraud filters. You’ll get your merchant account for your collection agency in as little as 24 – 48 hours. EMB offers customized payment solutions to collection agency merchants that offer these services:
- Account, bill, or debt collection
- Collateral recovery and repossession
- Credit reporting
- Debt portfolio collection
- Delinquent account collection
- Fee-based or contraction tax collection
To get your merchant account, you just need to fill out EMB’s quick online application. Also, you’ll be required to submit the following:
- A valid, government-issued ID, such as a state-issued driver’s license
- A bank letter or a pre-printed voided check
- 3 months of the most recent bank statements
- 3 months of the most recent processing statements, if applicable
- An SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargeback ratios must be under 2%
Your collection agency must be legal when your applications are being reviewed by processors and underwriters. The risks related to your business will be assessed by underwriters. Respectable processors like EMB guarantee a fast, secure application process. You can get your approval in as little as 24 hours.