Collection Agencies Merchant Processing
How familiar are you with debt collection merchant services? As you may be aware most banks do not want to deal with collection agency merchant services. I am sure that you are aware that a collection agency is a division of a business or perhaps, a third party business that contacts consumers to pay their bills. Merchant service providers shy away from debt service providers because their clients typically have bad credit. As a business owner a startup or an established company you know how to go about collecting your outstanding debt. It can be a long and drawn out process, but one that necessary for a successful business. Many businesses find that they simply do not have the time to actively pursue and collect on outstanding debts. One solution we offer is Debt Management Merchant Services where we work with several underwriting banks that are OK with collection agencies. That is, we take the worry and stress out of finding a friendly bank that is OK with your industry type. As a third party broker, we do all the leg work to make sure the underwriting bank matches your business model. We offer many different options, so we are sure to have the right fit for you.
We understand that most people do want to pay their debts. We are not living in the world where the majority of people are out to scam small businesses or purposely trying to avoid paying off their debt. But, let’s face it: It’s a tough economy. Many people have just gotten into a situation and are struggling to get by. As a business, it is even harder to get by. Carrying around uncollectable accounts can get expensive. Often, hiring a collections lawyer can be even more expensive. We rely on a variety of different techniques, technologies, and compliance methods to relieve your backlogged debt. We can help.
What Issues Come up for Credit Card Processing for Collections?
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Aging accounts. Accounts that are over 90 days old need intervention to get resolved. Although, the earlier the better, many companies cannot be aggressive as we can with follow-up on a daily basis via phone and mail. The longer an account ages, the harder it will be to collect.
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If you get a customer on the phone the easiest way to clear up the debt is to have them pay by credit card, debit cards, or check processing.
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Customers deny the debt or make unfounded complaints which can result in chargebacks.
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Merchant account and credit card processing solutions that are friendly towards Collection companies. Both Startups and established companies welcome!
First, we offer no setup fees and no application fees – no fee basis in which we only make money when we collect on your outstanding debt. With this option, our fee is based on a variety of factors based primarily on the type and age of the debt. On average, our fee is competitive 2 - 4%.
Another option we offer includes debt management services for those accounts about to become outstanding. This type of campaign involves sending letters and requests to the debtor to make payment and lets them know further action will be taken in an attempt to collect the debt on your behalf. This is called “soft collection”. This is a good, first option to take. We suggest rolling accounts into this campaign between 65 and 90 days past due.
You have your business; collecting your bad debt is ours. Let us put our staff to work for you. We work for you to help collect on debt and have more cash flow for your business. As always, we do follow all the guidelines according to the federal Fair Debt Collection Practices Act and we are administered by the Federal Trade Commission.
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