Collections Fall Into High-Risk Payment Processing
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.
Top Picks for Collection Agencies Merchant Services
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.”
eMerchantBroker.com 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.
eMerchantBroker.com 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+.”
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+.”