Merchant Account For Collection Agency

What is debt collection?

The word ‘debt collection’ is something related to banks, loans, credits and moreover something to be worried about. For a long time this word has been negative for most people. Well, this isn’t all. Debt collection means collection of past-dues from individuals or businesses on behalf of the credit issuer. This is what the Federal Fair Debt Collection Practices Act also suggests. The organization that collects debt on behalf of the creditors is termed as collection agencies. These agencies can be a first party agency or a third party agency. It depends upon their involvement in the original contract between the creditor and debtor.

Why is debt collection a high risk industry?

Now, the question of the hour that strikes our minds, why is this difficult for a collection agency to get a merchant account? The baseline answer is because debt collection business falls under high risk industry. If we have to analyze it thoroughly, high chargeback is the main reason for debt collection agencies to be a highrisk industry. The purpose of establishment of a debt collection agency is to collect payments from the coustomers. These are the customers who aren’t willing to pay the dues to their creditors. The clientele of collection industry mostly includes people with bad credits. When these debtors are forced by the collection agencies to pay the dues, their first resort is always filing a chargeback. Many amateur debt collectors have expanded in the market because of the industry expansion. This is another result of globalization. these companies work without complete knowledge of the collection and recovery process. Moreover they work in an unethical manner. This also adds to the negative reputation of this industry. The vicious cycle of ‘lack of reliable sources’ and ‘appropriate selection of processors and gateways’ is main problem. In other words we can say, is the main hindrances in development of new debt collection agencies. Lastly, what adds more negativity in this industry is the trend of following threat tactics. Some collection agencies even scare the debtors to pay their dues.

Where to get the help for a merchant account for collection agency? has the best-in-class and reliable services for such high risk businesses. We have resolved to help the debt collection indsutry in dedicated manner. Instead of coming up with boastful promises, we prove ourselves by our work. has understood the root causes of the hindrances in getting a merchant account. The main need of such merchants is to process high ticket amount in large volume and to accept most of payment options. This ensures that the business will go in sync and maximize possibilities of profit.

A merchant must be very careful in deciding a credit card processing company & payment gateway. Because after getting a merchant account, it is even more important to keep that account in a healthy state for long run. Some aggregators, do agree to provide services to these merchants. When chargebacks exceed the underwriting limits they freeze the account for a period of time. If the business grows ahead of expectations, then also they cease account. Services are also restricted to the merchants. This causes real hard times to the merchant having that account. comes with both domestic and offshore solutions for these merchants. There are two faces to each solution. The underwriting guidelines of a domestic service provider are usually restrictive and stringent. It is difficult to get a merchant account from these acquirers. Most offshore service providers do charge higher fees and also include rolling reserve. These service provider readily provide merchant accounts for high risk industry. helps you find solutions and services from the most suitable processors. We work after comprehensively analyzing your business profile and account requirements. Whether it be contract terms, pricing, holdback fees, rolling reserve or underwritings: gets best for you. We make it possible for you to get reliable and quality services at best competitive prices.

Guidelines to get a merchant account for collection agency:

  • For a payment processor or bank, your business must look legal, reputable, genuine and profitable to the underwriters.
  • The risk factor in your specific type of debt collection should be as small as possible.
  • The business frame should be in compliance with the federal laws such as Fair Debt Collection Practices Act (FDCPA).
  • Your credit history and credit score should also be in a good state. You should also have a perfectly balanced website with complete terms and conditions mentioned.
  • You should draft your collection strategy in a way that is legal and the chargeback ratio should not be high for the debt collection process. In a broader way, the chargeback ratios should be less than 2-3% of the total.
  • You should not portray use of threat tactics and only follow legally permitted ways to recover the out-dues.
  • If you are dealing with an offshore processor, you should negotiate to get the best deal for your merchant account.
  • Once you have a merchant account, follow the guidelines provided by the underwriters to keep your account for long run. excels in helping you find best processors and service providers for your high risk merchant account. If you are facing any trouble in getting the account, we are ready to help you. You can sign up the application form at or send us a query on [email protected]. You can also call us on +1 6318321773.