Processing for Collections

Collection agency payment processing doesn’t have to be an impossible task. The likelihood of obtaining payment processing for collection agency businesses increases substantially if you seek out collection agency merchant services with a company who specializes in providing high risk merchant accounts.

If you’ve applied for collection agency credit card processing to get a collection agency merchant account before, you have likely been told by the person responsible for whether or not you get approved, and with what conditions (e.g. rolling reserve, financing delay, transaction caps, monthly caps, etc.) will be based on the individual underwriter assessing your account. And that is generally true, therefore it is important to understand exactly what this decision maker is searching for.

An underwriter’s job is to protect the debt collection credit card processor from losses, which may take the form of unpaid chargebacks, yearly fees, or regulatory losses from the card manufacturers (Visa, MC, AmEx, Discover) or by a local, state, or national government body.

Debt collection merchant services come in many forms, but unless you go with the experts you’re subject to higher fees and possibly even an outright declined application.

When underwriters are considering your business, they’re trying to ascertain how serious the risk of loss is by allowing your collection agency merchant account to process through them.

Navigating collections and payments can be frustrating.

Why is the CollectionsIndustry Considered to be High Risk?

Between unsavory merchants escalating rates and resorting to scare tactics to get debtors to pay, it’s no secret that the debt collection industry does not have the best reputation. It is an industry loaded with risk — revenue is all dependent on the debtor making good — and is facing upcoming reforms.

Regardless, Valmar has been a high risk merchant account provider since 2014 and specializes in businesses and industries that have difficulty finding payment processing solutions.