If you are in the debt collection industry, you will want to offer people a variety of payment options when they are attempting to make good on their outstanding obligations. Far too often, these types of businesses will want the person to pay their debt off by sending a check or setting up regular monthly payments because they do not offer any other methods of payment.
Part of the problem stems from the debtors: While their initial intentions are to pay off their bills, life happens, so it is easy for them to decide they are going to skip making a payment or two … and, next thing, they just stop. Next, most people are not fully comfortable, in today’s society, with sending a check with their bank routing number and account number to a collection agency.
The Struggles of Obtaining Debt Collection Merchant Accounts
Not all collection agencies are above board, and some do use unsavory practices, like attempting to make an electronic withdrawal for the total amount owed once they have the person’s banking account details. This is unfortunate, as it makes it difficult for other reputable and honest debt collection agencies to help people pay off their obligations.
Rather, people need some sort of reassurance, and protection, too, to ensure the debt collector is going to stick with the terms of the payment agreement. The easiest way to do this is to make sure your business has been set up with debt collection merchant accounts.
These types of accounts allow you to accept and process debit and credit card transactions while providing the same consumer protections for people as any other type of merchant accounts. Merchant accounts can be set up to accept payments over the telephone, online, through the mail, or in person at your office.
Get Approved for Debt Collection Credit Card Processing
If you have spent any amount of time looking at different service providers offering merchant accounts and credit card processing, you probably know it can be hard to get approved when you run a debt collection agency. This is largely due to this type of business being classified as “high risk” by merchant account service providers due to these factors:
- The high number of chargebacks experienced by debt collectors.
- The ratio of disputes filed by consumers for payments collected over the phone and online.
- The ability of the consumer to cancel payments immediately after making them.
- Most merchant account underwriters consider those who owe debts to be untrustworthy.
As a result, not all service providers are willing to even take your application, while others will take the application saying they can find an underwriter, only to be denied later.
Fortunately, there are a few merchant accounts providers, like us, here at Leap Payments, which offer assistance in helping you open a merchant account so you can accept debit and credit cards for collecting payments for outstanding debts. We offer a lifetime rate lock, the lowest rates, and 24/7 customer service. Call (800) 993-6300 today to learn more or to open your merchant account!
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