If you are running a collection agency and you have been rejected by payment processors for a credit card processing account, then you must be thinking, Why me?.
Listen up, you are not the problem: you’re just in the wrong system.
Most payment processors run away when they hear the word collection. You may ask, why?
This is because they don’t understand the nuances of your business and your industry, or sometimes they are terrified of touching any industry that has the potential of slightly higher chargebacks than a regular e-commerce merchant. Many payment processors also do not want to touch that collection of merchants because of legal risk or brand backlash.
But he is the kicker.
You need credit card payments to survive and scale.
Let’s unpack and understand why this keeps happening and how the pros in this industry fixed it for good.
Why Traditional Processors Say “No” to Collection Agencies
For most of the payment processors that work on the traditional model, the collection agency field is so radioactive that they always want to stay away from them. Here are the reasons that spook them.
1. Chargebacks:
The word debt sets off a fraud alarm for these payment processes. Some consumers dispute charges simply out of spite or confusion and not because the transaction was invalid.
2. Legal Exposure:
Collection agencies must follow strict rules such as the FDCPA and TCPA. One wrong step taken by your agency, and suddenly the processor is exposed.
3. Reputation Risk:
Payment processors truly care about their image, and sometimes having a collection agency on the merchant roster can be too much heat for too little reward.
The bottom line is most of these processors that right away decline all the applications of collection agencies are actually not evaluating the potential of these merchants; they’re basically avoiding the perceived trouble.
Why Credit Card Processing Is Essential for Your Collection Agency
Let us be real here:
If you are still asking people to mail checks or make bank transfers, you are slowing down your revenue. Credit card payments for a debt collection agency come with serious advantages.
Credit card transactions happen instantly. You don’t have to wait for 5 to 7 days for the check to clear.
You will be able to accept payments 24/7 through your online portals; basically, your debtors can visit your website and make payments whenever they are comfortable.
If your business allows debtors to make structured repayments, then you can use the recurring billing facility.
When you start using credit card processing for your debt collection business, you are basically removing friction; you are making it easy for your debtors to pay you.
Modern debtors expect modern payment solutions; if you don’t allow for them, someone else will.
How Smart Agencies Get Approved (Without Wasting Time)
Here is the truth:
You need a high-risk merchant account, and not just any kind of account; you need one that is built specifically for collection services.
Serve customers globally with high-risk payment tools
That is where QuadraPay comes into the picture.
We have served hundreds of high-risk merchants across the US, Canada, the UK, and Europe to get approved by payment processors from difficult industries. These payment processors honestly review the profiles of legitimate and genuine collection agencies that wish to play by the rules.
We offer high approval rates because we work with multiple payment processors, and if one declines your application, we quickly move to another one and ask them if they can do it, and if they say no, we go to the third one.
We do not stop until we have exhausted all options.
Our payment solutions come with advanced chargeback management tools. If you get a chargeback, our payment processing partners will work hand in hand with you and help you by efficiently informing you about the representment process.
Our payment processing solutions can also be integrated to advance chargeback alerts and notification services that work as a layer of protection for complex industries like debt collection.
You will be able to accept payments from your customers through multiple methods, such as regular credit and debit cards, ACH, e-checks, and bank transfers.
We work with domestic and international payment processing partners that truly help us to offer better solutions to merchants like you.
While many providers take multiple weeks for approval, our solutions come with fast onboarding. In most cases, businesses are approved within 3 to 5 business days.
We believe in no stalling, no runaround, just serious solutions.
Why Collection Agencies Sometimes Fail with Other Providers
A lot of agencies basically choose shady offshore solutions and unreliable middlemen, and what they end up with is high reserves that can actually kill their cash flow. Along with that, they also struggle with long settlement times, and not to forget, surprise account shutdowns.
At QuadraPay, we do things differently:
For collection merchants, we do not offer offshore solutions, and that is why merchants do not get fake approvals that fall apart. Our solutions are powered by domestic acquiring institutions that are 100% compliant and transparent. These processing partners play with rules and offer clear terms.
This approach is not just safer; it’s basically smarter.
Common Questions About Credit Card Processing for Collection Agencies
Q: Can I legally accept credit card payments as a collection agency?
As long as you run a legitimate company, you have a clean profile, and you fit in the compliance requirements of our payment processors, you can most likely get a merchant account provided you follow the related regulations such as FDCPA and others.
Q: What’s the best kind of merchant account for my business?
The best-suited solution for your industry is the high-risk merchant accounts that support credit cards, ACH, and recurring billing.
Q: How fast can I get approved?
If your profile is clean and you match the compliance requirements of our processor, then in most cases you can get your account live to accept card payments within 3 to 5 business days, assuming that you ensure that your KYC documents are in place.
Q: Do I need a website?
Absolutely, you will need a fully functional website to accept online payments. If you don’t have one, ask us; we may be able to help you set it up.
Q: Can I accept payments over the phone?
Many collection agencies accept payments over the phone, and for this they use virtual terminals.
Let’s Fix Your Payment Problem.
Do you not consider yourself a risk?
We consider you a high-value revenue operation, and we believe that you deserve a payment solution that understands your model.
With QuadraPay, you can start accepting credit cards, ACH checks, and bank transfers. We will get you approved through a no-nonsense process, and you will be working with a provider that is built for real collection professionals.