Debt collection agencies need a reliable credit card processor. This service is hard to find due to the way banks view the recovery business. Some turn to platforms like Paypal or Stripe, which can work. However, you are in danger of chargebacks and monthly limits that could trigger a freeze on your account.
Why Are Collection Agencies Considered High-Risk Merchants?
The primary reason for the high-risk label placed on debt collectors is chargebacks. This industry sees a high number of this type of activity. Another issue lies with regulations. There are a lot of rules that come with debt recovery, and some firms do not operate by them. This can lead to legal problems that tarnish the reputation of the industry as a whole.
Let Us Introduce You to Instabill for Debt Collectors
We have partnered with merchant service provider Instabill to bring you reliable options for your business. Enjoy all the benefits you need to build a profitable business with less risk. Our partnership will bring you:
- Secure Global Payment Processing
Get fast, secure payment processing that works almost anywhere. Instabill maintains a network of acquiring banks that lets them offer merchant services for a wide range of industries across the globe.
- Accept Many Forms of Payment
Make it easier for debtors to pay what they owe by accepting more forms of payment. Instabill accepts all major credit card brands as well as Discover, Electron, Diners Club, China UnionPay, and JCB.
- Better Fraud Protection
Fraud protection is essential in the debt collection industry. Merchant accounts are protected using a number of methods including MaxMind Fraud Protection, Secure Sockets Layer (SSL) certificates, 3D secure payment processing, and refund and chargeback mitigation.
Is My Collection Agency Eligible for a Merchant Account?
Instabill is an effective solution for different agencies. You may be eligible for a full-featured merchant account. See below for eligibility details.
- Offshore Collection Agencies
Startup offshore collection agencies are approved on a case-by-case basis. Three months of business banking statements or a business bank letter are required. Instabill will also accept three months of personal banking statements.
If you are an established offshore debt collector, you will need to provide three to six months of payment processing history and statements. The statements must include the company name, total sales, returns, refunds, and chargebacks.
- Domestic Collection Agencies
Domestic debt collection agencies must provide a valid owners identification, completed application, bank business letter or voided check, documents of incorporation, and at least three months of business banking statements.
Virtual terminal and check solutions are also available from Instabill. You will be required to provide a valid ID, articles of association, voided check or business bank letter, and the completed application.
Apply for Your Collection Agency Merchant Account Today
Getting approval for a merchant account may be easier than you think. Contact us by phone at (619) 202-4862 today to learn more or begin the application process.