In the modern world, people choose to pay via credit and debit cards, that’s why a merchant account has become absolutely necessary for not only face-to-face sales but for those via phone or internet. Merchant accounts for payday and title loan companies play a vital role, but they are often so much challenging to obtain.
Payday loan companies offer short-term cash loans in exchange for a postdated check, usually dated for your next payday. The loan total and a finance charge are included in the amount of the check.
Title loan companies offer short-term loans while holding your vehicle’s title as collateral. The lender estimates the price of the given vehicle and offers to lend up to a certain percentage of that value, which usually makes up 25 – 50%.
When it comes to payday lenders, they often find it so difficult to open a merchant account. The problem stems from the fact that payday loans and title loans are classified as extremely high risk because of their high potential for default, their possible exposure to government regulation, and the financial instability of their consumer base.
Thus, it’s not easy to find a trustworthy merchant account provider for brokers who deal with payday and title loans. The high risk nature of payday and title loans makes many providers such as large banks offer their services under unfavorable terms and fees to cover the perceived risk of processing payments for a payday or title loan merchant account.
Fortunately, reputable payment processors like emerchantbroker.com (EMB) serve high risk businesses and are willing to offer merchant accounts for auto title lenders and payday loan stores. With EMB, you can get a low-cost and reliable payday & title loan merchant account without major difficulties.
Emerchantbroker.com is voted the #1 high risk merchant account provider in the US and boasts an A+ rating with the BBB. EMB is able to serve companies in the nontraditional lending sector. EMB is one of Inc. 500’s Fastest Growing Companies of 2016 and offers unmatched payment processing solutions in the industry. EMB is rated A by Card Payment Options and knows your high risk business best of all.