Debt Collection Industry and Merchant Accounts

Dec 26, 2017

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.

Let us help you get a high risk merchant account today!

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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 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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