What to Look for in when Getting a Collection Agency Merchant Account

Aug 26, 2015

Every merchant needs a merchant account. From car dealerships to e-cig sellers to even collection agencies, every business needs to safely accept and process plastic card payments. While some businesses have an easy time finding a merchant account, others, like collection agencies, do not. There is a stigma in the industry with this business, and they have labeled it as “high risk”, because it is at a higher risk of incurring fraudulent charges. While this may deter some from starting their dream business, it should not. A great collection agency merchant account can be found.

One of the most important things to look for is an understanding of the industry. A great collection agency merchant account provider will have experience with the industry, and will know the latest news and updates. Some “high risk” merchants claim to know, but when asked they give a generic runaround. Be sure to quiz your perspective provider before signing on the dotted line.

Another thing that makes a provider great are reasonable processing fees. I don’t mean the lowest fees, I mean reasonable fees. Every business type has an industry-standard fee setting, but many providers use their own discretion when assigning fee schedules. You should know your fees upfront, and you should also know if or when a fee is going to change. Nothing is worse than figuring out that your processing percentage went up without any notification. A great collection agency merchant account provider, like EMB, will notify you ahead of time.

A great collection agency merchant account provider will also have a great reputation not only amongst merchants, but also the processing industry. A great reputation shows that they are serious about their jobs, and that they know their stuff. Collection agency affairs are sometimes difficult to figure out, and legislation is always trying to change the industry. A great collection agency merchant account provider knows this, and they also know that the industry is much needed. This industry is tough, but consumers and other merchants rely on it to get their financial matters in order.

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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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