Debt collectors make sure that payments are collected within a reasonable period of time, keeping a stable cash flow which is crucial for the economy.
However, merchant account providers are reluctant to deal with debt collection agencies due to the high-risk transactions. Without a debt collector merchant account, it can be difficult for collection agencies to do business.
Debt collectors or agencies play a crucial role in helping businesses collect the money they are owed.
But there are ways to get the job done. Read on and learn how to set up a debt collection merchant account.
The requirements can vary but prepare to meet the following standards:
Additional documentation may be requested depending on the business’s financial and business history. Mostly, the approval of the account can take up to 5 business days.
A dedicated debt collection merchant account specialist will guide you throughout the application process. The underwriters will then review the application along with the submitted supporting documents.
It is best for the merchants to comply with the Fair Debt Collection Practices Act and must be fully licensed for faster approval.
In addition, it is recommended to have a signer on the account with good personal credit. A good credit standing would also facilitate a good approval rating. Plus, have your business account ready with sufficient funds to support the monthly processing requirements.
A functioning website is also necessary. Make sure that all pages are working with all the business details clearly displayed on the appropriate pages. Links, contact information, terms and conditions, privacy, refund, and other policies must be available on the website too for the visitors’ convenience.
Make sure to keep the communication lines open as underwriters commonly email or cold call. Voicemail should also have the company name and when the caller can expect a callback. The same goes for email auto respond. And do not forget to respond or call back as promised.
A merchant account for debt collection businesses can still be created. Despite the challenges given the bad reputation associated with debt collection agencies due to high chargebacks, inconsistent cash flow, and more.
It takes more effort and additional documents to have the debt collector merchant account approved. You will have to find a well-established payment processing provider to help you find the best possible option for your agency.
Find a payment processing service provider that can get you the debt collector account to manage and grow your business. Discover the exceptional services of First Card Payments that will bring your business to success.
Contact them today, get ready with the documentation, be patient, and wait for your account approval.