Victims of Debt Collections Scam Get $4 Million

Jul 20, 2015

Debt collections scams are on the rise, and it was recently announces that nearly 95,000 victims will split an estimated $4 million US dollars in damages. The Federal Trade Commission is cracking down on these scams, which seem to be more prolific these days. From small schemes, to the recent Honda credit repair scam, merchants and consumers need to heed anyone who claims to fix their credit or credit score. Legit debt collection merchants will not promise you anything, but rather give you estimated solutions. No legit company should promise you that your credit score will rise overnight, or will wipe your credit report clean. These things are not possible, and this should be your first sign that a company is trying to scam you.

While these scams are on the rise, there are still legit credit repair companies and debt collections merchants around. The names are interchangeable, and you should do your research before visiting a company. While online reviews are great, sometime they can be bought, or “stuffed”, by having friends and relatives good reviews, even if they have not used the company’s services. A good place to look is BBB, or the Better Business Bureau. The BB gives ratings to all of its members – ratings that cannot be bought. This is the most reliable way to gauge the reliability of the company and its services.

These scams can also wreak havoc on existing debt collections merchants. Scams can put a damper on the whole industry, and it can make it tough to do business. While opening a business might be easy, finding a debt collections merchant account is tough. Few offer this service, due to the “high risk” nature of the industry. This label is placed upon companies for many reasons, but in the case of debt collections merchants it is because the industry has a higher risk of fraudulent activity. Because of this, processing fees can be higher, and accounts more fragile. Be sure to research debt collections merchant accounts before signing on with one, as this is one of the most important investments you will make for your company.

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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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