A Collection Agency Merchant Account is classified as a high risk for various reasons. However, at WebPay, we specialize in working with high-risk merchants and are well known to provide them with the best payment solutions. Before you delve deeper, let us know more about it.
What is a collection agency?
A company that recovers past due funs is known as a collection agency. Most commonly, lenders be it banks or loan associations, hire collection agencies as they are unable to collect the debt themselves, and it becomes their obligation to recover the borrower’s debt. To do this, they will use the following methods:
- Make calls to the debtor from 8 a.m. to 9 p.m. (on the personal or working phone)
- Mail late-payment notices
- Visit the debtor individually
- Contact family members/friends/neighbours to find out more about debtor’s contact information
**If in case the collection agency is successful in collecting debts then it receives a percentage of the recovered assets as their remuneration.
Why Are Collection Agencies Considered High Risk?
It is indeed true that the Fair Debt Collection Practices Act(FDCPA) regulates the means and approaches of the collection agencies use to make sure they act under the law., however, still, some collection agencies work unfairly. And that is why the debt collection industry does not have the best reputation. As a result, the payment service providers do not willingly offer merchant accounts for such business types. Not just this, collection agencies are always under the risk of not being able to recover the debt.
But now, you don’t need to worry anymore. We at WebPay know that every collection agency needs a secure payment gateway as they work in a somewhat risky industry. With our team of experts, we make sure that payment processors are trustful, that is, it must be PCI DSS compliant and have chargeback & fraud prevention tools.
Another thing that adds another feather to our cap is fair pricing. It’s great if the PSP of your choice has a broad network of banks. This ensures the connection to the local one which lowers the processing fees.
How can one apply for a Collection Agency Merchant Account?
To get one, every merchant needs to begin by filling out our online application. Along with that, merchants need to submit the following documents:
- A bank letter or a pre-printed voided check
- 3 months of the most recent processing statements,
- A valid, government-issued ID, such as a state-issued driver’s license
- 3 months of the most recent bank statements
- Their Social Security Number or Employer Identification Number
- Also, merchants who operate online must have a fully-functioning and secure website.
With WebPay, we guarantee you to offer the best in-house and customized solutions for your business. Our 24*7 helpline desk is always ready to help and assist you. In case of any queries, give us a call or write to us @.
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