Best Merchant Accounts for Collection Agencies

Here's the digital illustration depicting a collection agency merchant account

Collection agencies are some of the highest-risk business types within the credit card processing industry. Most major banks will hesitate to offer merchant accounts for debt collection agencies due to the unstable regulatory climate of the industry and the unreliable income streams for debt collectors. In the event that a bank does offer debt collection merchant accounts, it typically will require a very long processing history and an aggressive cash reserve. However, debt collection services are businesses just like any other, and a handful of merchant services providers are willing to serve even high-risk collections companies.

To help you find a credit card processor that can assist your business, we've put together the following list of the best merchant accounts for collection agencies. The companies on this list offer e-commerce solutions, offshore merchant accounts, marketing tools, and other useful services for operating your debt collection business. They are also known to provide low-commitment contracts with transparent pricing and quality customer service. To find the best provider for your specific debt collection company, be sure to research each processor's products and features and compare pricing and terms.

Please note that the regulations surrounding the debt collection industry are subject to regular upheaval, and that these providers' ability to serve debt collectors may fluctuate depending on legislative restrictions and specific merchant conditions.

How to Select the Best Collection Agency Credit Card Processor

When selecting a credit card processor for a Collection Agency business in the USA, there are several factors to consider. Here are some of the key considerations.

Compliance with Industry Regulations

Collection Agencies are regulated by a number of federal and state laws, including the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA). It is essential to choose a credit card processor that is well-versed in these regulations and can help you ensure compliance.

Chargeback Prevention and Management

Chargebacks can be a significant problem for Collection Agencies, and they can result in fines, lost revenue, and damage to your reputation. Look for a credit card processor that offers robust chargeback prevention and management tools, such as real-time fraud detection and chargeback alerts.

Customized Pricing

Collection Agencies have unique needs when it comes to credit card processing, and you want to make sure you're not overpaying for services you don't need. Look for a credit card processor that can offer customized pricing based on your business volume and transaction types.

Integration with Your Existing Software

Your credit card processor should integrate seamlessly with your existing software, such as your collections management system, accounting software, and CRM. This will help streamline your operations and reduce errors.

Security and Data Protection

Collection Agencies deal with sensitive personal and financial information, so you need a credit card processor that takes security seriously. Look for processors that offer PCI compliance, tokenization, and encryption to protect your customers' data.

First Class Customer Support

In the collections industry, time is money, and you need a credit card processor that can provide quick and responsive customer support when you need it. Look for a processor that offers 24/7 support via phone, email, or chat.

Overall, it's essential to choose a credit card processor that understands the unique needs of a Collection Agency business in the USA and can offer tailored solutions to help you maximize your revenue while staying compliant with industry regulations.

Best Merchant Accounts for Collection Agencies

PaymentCloud Logo


Top Rated for Collection Agency Credit Card Processing

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high-risk business types. The company's products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. PaymentCloud is a good option for debt collectors with at least some established payment processing history.

PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant's business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

Why PaymentCloud is the Ideal Collection Agency Payment Processing Option

For business owners in the Collection Agency industry, accepting credit card payments from customers is crucial for smooth operations. PaymentCloud offers specialized payment processing services that cater to the unique needs of Collection Agency businesses. With PaymentCloud, Collection Agency businesses can securely accept and process credit card payments, making it easier for customers to make payments and helping the business run more efficiently.

Secure Payment Processing for Collection Agency Products

PaymentCloud's payment processing services are designed to ensure that transactions are safe and secure, giving both business owners and customers peace of mind. With PaymentCloud, Collection Agency businesses can process payments for their products quickly and efficiently, without having to worry about the security of their customers' financial information. PaymentCloud also provides businesses with advanced fraud detection tools, minimizing the risk of fraudulent transactions.

Customized Payment Processing Solutions for Collection Agency Businesses

PaymentCloud understands that Collection Agency businesses have unique payment processing needs. That's why they offer customized payment processing solutions tailored to the needs of each business. PaymentCloud can integrate with a variety of Collection Agency software, allowing for seamless payment processing that integrates with existing systems. This means that businesses can continue to use their preferred software and processes while benefiting from PaymentCloud's secure and reliable payment processing services.

Flexible Payment Processing Options

PaymentCloud offers a range of payment processing options, making it easy for Collection Agency businesses to accept payments from customers. Whether it's online payments, mobile payments, or in-person payments, PaymentCloud has a solution that works. This flexibility means that businesses can offer their customers the payment options that best suit their needs, making it more convenient for customers to make payments.

PaymentCloud is an excellent option for Collection Agency businesses looking for a secure, customized, and flexible payment processing solution. With PaymentCloud, business owners can process payments quickly and efficiently, while also providing their customers with a safe and convenient payment experience.

For more information, visit the PaymentCloud website or call (888) 506-7859.

eMerchant Broker Logo


Top Rated for Collection Agency Merchant Accounts is a Los Angeles, California-based company that offers high risk e-commerce processing solutions including debt collection merchant accounts. The company's products include ACH processing, an online payment gateway, merchant cash advance, and a chargeback management system to help merchants dispute and resolve chargeback claims. eMerchantBroker can supply collection agencies with domestic merchant accounts as long as they are not third-party collections firms, maintain chargeback ratios under 1%, are not startups, and do not collect on overdue payday loans. offers custom pricing for each merchant and maintains a low complaint rate relative to its size and merchant portfolio. Our review of eMerchantBroker gives the company an “A” rating overall and the BBB assigns the company a rating of “A+.”

Collection Agency Payment Processing: Why eMerchantBroker is a Top Option for Small Businesses

If you're a small business owner selling Collection Agency products, you need a reliable and secure payment processing service that can handle all your transactions seamlessly. That's where eMerchantBroker comes in. As a leading provider of payment processing solutions, eMerchantBroker offers a wide range of services that are tailored to meet the unique needs of businesses in the Collection Agency industry.

Specialize in High-Risk Merchant Accounts

One of the primary reasons why eMerchantBroker is an excellent choice for Collection Agency payment processing is because they specialize in high-risk merchant accounts. Collection agencies are considered high-risk businesses because of the nature of their work, which involves collecting debts from individuals and businesses. As a result, traditional payment processors are often reluctant to work with them, making it challenging to find a reliable payment processing solution. However, eMerchantBroker has years of experience working with high-risk merchants, including those in the Collection Agency industry, and can provide customized solutions that meet your unique needs.

Committed to Credit Card Processing Security

Another reason why eMerchantBroker stands out is their commitment to security. Collection agencies deal with sensitive financial information, making security a top priority. eMerchantBroker offers state-of-the-art security features such as PCI-compliant payment gateways, SSL encryption, fraud detection and prevention, and chargeback mitigation. With eMerchantBroker, you can rest assured that your customers' payment information is safe and secure.

Competitive Pricing and Excellent Customer Service

eMerchantBroker offers competitive pricing and excellent customer service. They understand the challenges that small businesses face, and they work hard to provide affordable solutions that help you grow your business. Their customer support team is available 24/7 to answer any questions or concerns you may have, and they are always willing to go the extra mile to ensure your satisfaction.

If you're a small business owner in the Collection Agency industry, eMerchantBroker is an excellent choice for payment processing. With their expertise in high-risk merchant accounts, commitment to security, and outstanding customer service, you can trust them to provide a reliable and secure payment processing solution for your business.

For more information, see the eMerchantBroker website or call (877) 301-3442.

Additional Options

Host Merchant Services logo

Host Merchant Services

Host Merchant Services is a Newark, Delaware-based merchant account provider that may be a great fit for a collections business. The company’s products and services include point-of-sale solutions, online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, and merchant cash advance. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested new merchants. Host dedicates a portion of their website to advertising high-risk payment services to many businesses that fit that category, meaning they could be a great option for many collection companies.

Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company’s customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”

Why Host Merchant Services is a Great Choice for Collection Agency Payment Processing

Collection agencies face unique challenges when it comes to payment processing. They need a secure, reliable payment processing solution that can handle large volumes of transactions, while also providing the flexibility to accept a variety of payment methods. Host Merchant Services offers all of these features and more, making it the perfect choice for collection agencies.

Customized Payment Solutions

One of the biggest advantages of using Host Merchant Services for collection agency payment processing is their industry expertise. They understand the specific needs of collection agencies and have developed a payment processing solution that is tailored to meet those needs. They offer customized payment solutions that allow businesses to accept payments via credit cards, ACH transfers, and other payment methods, giving customers the flexibility to choose the payment method that works best for them.

Robust Security Model

Another key advantage of using Host Merchant Services is their security model. Collection agencies handle sensitive financial information, which means that data security is critical. Host Merchant Services offers robust security features, including encryption and tokenization, to protect sensitive information from hackers and cyber threats. They are also PCI compliant, ensuring that businesses meet industry standards for data security.

Comprehensive Payment Processing Plans

Host Merchant Services offers competitive pricing for their payment processing services. They understand that collection agencies need to keep their costs low in order to remain competitive, and they offer transparent pricing with no hidden fees or charges. This makes it easy for businesses to budget for payment processing expenses and keep their costs under control.

Collection agencies looking for a reliable, secure, and affordable payment processing solution should consider Host Merchant Services. With their industry expertise, commitment to security, and competitive pricing, they offer everything that collection agencies need to accept payments from customers and grow their businesses.

For more information, visit the Host Merchant Services website or call (888) 727-4538.

Frequently Asked Questions: Collection Agencies Credit Card Processing

What is a merchant account?

A merchant account is a type of bank account that allows businesses to accept payments in multiple ways, typically through credit or debit cards. It serves as an agreement between the retailer, a merchant bank, and a payment processor for the settlement of transactions.

Why do collection agencies need a merchant account?

Collection agencies need a merchant account to process payments when collecting debt from individuals. This allows them to accept a variety of payment options, making it easier and more convenient for debtors to fulfill their obligations.

How can I find the best merchant accounts for collection agencies?

You can start by researching and comparing different providers based on factors such as fees, customer service, security measures, ease of integration, and support for your preferred payment methods. Reviews and ratings from other collection agencies can also be helpful.

What are some specific features that collection agencies should look for in a merchant account?

Collection agencies should look for features like support for recurring payments, robust security measures, easy integration with existing systems, and transparent pricing. They might also benefit from advanced features like automated payment reminders and analytics.

Are there any merchant account providers that specialize in collection agencies?

Yes, there are providers who specialize in “high-risk” industries like debt collection. These providers are generally more understanding of the unique challenges and requirements of the collection industry.

Why are collection agencies considered high risk?

Collection agencies are often labeled as high risk because they have higher rates of chargebacks and disputes compared to other industries. This risk profile can make it more difficult to secure a merchant account.

What can a collection agency do if they're having trouble getting approved for a merchant account due to their high-risk status?

If a collection agency is having trouble getting approved, they might consider working with a provider that specializes in high-risk merchant accounts. They should also ensure they have strong internal controls to minimize chargebacks and fraud, as demonstrating these precautions can make them more attractive to providers.

 How important is customer service when choosing a merchant account provider?

Customer service is very important when choosing a provider. You want to ensure that the provider will be responsive and helpful if you encounter any issues or have questions about your account. Some providers offer 24/7 support, which can be a significant advantage.

Are there any costs associated with setting up a merchant account?

Yes, there are typically costs associated with setting up a merchant account. These can include setup fees, monthly fees, transaction fees, and other potential costs like chargeback fees. Be sure to understand all the fees involved before choosing a provider.

Is it possible to negotiate the fees with a merchant account provider?

In some cases, it may be possible to negotiate fees with the provider, especially if you have a high volume of transactions. It's always worth discussing this with potential providers to see if they can offer you a better deal.

Reader Comments

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1 User Reviews

  • Ethan

    I want to extend my profound thanks for your comprehensive and enlightening article on “Best Merchant Accounts for Collection Agencies”. As someone involved in the collection agency sector, your guide has been an indispensable resource, aiding me in navigating the specifics of this complex field.

    Your detailed analysis of each merchant account, emphasizing their unique benefits, potential limitations, and key features, was superbly constructed. You have a knack for making intricate subjects accessible, and your clear, concise writing style made it easy for readers like myself to understand.

    Your focus on crucial elements such as transaction fees, security protocols, customer service, and the ability to handle the specific needs of collection agencies was incredibly beneficial. I found your insights on chargeback management, high-risk processing, and compliance with legal standards particularly useful.

    The depth of your research and the considerable time and expertise that you’ve invested into this guide is evident. Your commitment to delivering accurate, detailed, and actionable information has not only simplified the decision-making process but also empowered professionals like me to make informed decisions.

    Thank you once again for your valuable contribution to this field. Your dedication, hard work, and expertise are greatly appreciated.

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