Merchant account for debt collection companies

From IVR payments to virtual terminals, we've got debt collection card payments covered.

Card processing for debt collection companies

Companies that fail to retrieve funds owed from customers often offload debt to external agencies for as little as 10p for every pound owed. It’s then down to the debt collection agency to pursue the debtor for the remaining balance – and that’s how they make their money.

Debt collection companies have seen a huge boom over the past decade. In fact, according to ‘The Credit Services Association’ as much as 10 billion worth of debt has been sold worldwide during the last ten years largely due to increased levels of both debts and defaults by borrowers.

Despite tighter lending criteria across many industries, debt levels are increasing and there is more demand than ever for debt collection agencies to take on debts. There’s a level of risk analysis required to help determine which debts are likely to prove profitable, and these are the ones debt collectors pursue.

Debt collection companies are perceived as high risk by the majority of merchant account providers and gateway hosts. It’s important that when applying for a high risk merchant account you speak to an advisor with a solid level of experience in this industry.

At Merchant Advice Service we can put you in touch with an expert that deals with these types of businesses every day so that you can get accepted with a great deal first time.

Why are debt collection companies high risk?

The number of merchant providers that will accept debt collection companies is limited due to mainstream providers seeing the industry as extremely high risk , and this is for two key reasons:

  1. The high volume of chargebacks processed by lenders within the sector. If people are unable to pay debts they will often issue chargebacks to clear the charges – which then increases the perceived risk of the industry as the lender then covers the outstanding debt balance.
  2. The industry’s reputation for handling chargebacks has resulted in huge losses. The lack of procedures in place to fight them and insufficient knowledge of what a chargeback is has resulted in debt collection companies losing cases.
Find out more about high risk merchant accounts here

Are you looking for a debt collection card processing facility?

The number of merchant accounts available reduces significant for high risk businesses, but there are options and specialist high risk merchant account providers we can pass you on to. They deal with the following solutions and more on a daily basis:

Whether it’s a debt collection merchant account or a payment gateway for debt collection websites, get in touch with one of our expert advisors today. Contact us today for impartial advice and a free, no obligation quote.


IVR payments for debt collection company

IVR payment facilities are widely used in debt collection firms for a number of reasons. Lets take a closer look…

IVR means interactive voice response, which in payment terms is used for automated telephone payments. Payments are made by the customer entering card details directly into the telephone keypad. The benefits of using IVR telephone payments in debt collection companies are;

  • Clients can make payments 24/7 365 days a year
  • IVR systems can integrate with your CRM meaning that clients are provided with live data regarding the debt due. The plus side of this for the recovery company is streamlined accounting
  • Having a dedicated phone line allows clients to pay from almost anywhere – without the need for internet connection
  • Accepting payment via IVR means that staff do not take card details, increasing security

Merchant Advice Service works closely with IVR partners to provide telephone systems to debt recovery firms in the UK. Our experts can help with your MOTO merchant account to process debt payments alongside the IVR phone line itself.


Debt recovery company saving money on card processing

If you are a trading debt collection company with merchant account statements, we can look to save you costs on your card processing rates and IVR costs. Our experts provide a free of charge, no obligation review of your payment costings. Speak to our friendly team today.

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