Merchant Account’s for mis-sold mortgage claims
Mis-sold Mortgage and Insurance card processing
The financial claims market has grown dramatically in recent years, from PPI claims companies to mortgage and insurance investigators who look to gain compensation for customers who are unknowingly mis-sold products through brokers and high street lenders.
How do Mis-sold Mortgage and Insurance Companies take payments?
Following a successful claim the company will take a percentage split of the amount owed to the client. Mis-sold mortgage companies tend to accept card payments online and over the phone and after the settlement has been paid to the client. Understandably, this is due to the banks not paying out to third parties for claims made against them.
The clients will receive an invoice with the amount due to the claim company. To ensure agents’ working for the company can focus on accepting incoming calls and assisting new clients, these fees are ordinarily settled electronically in one of the following ways;
Taking payments via the web
Accepting credit and debit card payments online for claims companies is cost-effective as it doesn’t require a company-based end-user. Finding a high-risk gateway provider to support a mis-sold mortgage claims website is relatively straight forward, however securing a merchant account can be a little more complex which we’ll look at shortly.
Some companies provide an integrated service where authorised transactions are reported back to an existing customer database, subsequently saving administration time.
Email billing for claims companies can be integrated to CRM systems and back office reporting tools, allowing initial invoices, reminders and receipts to be sent automatically. The customer will receive an email with ‘pay here’ button which will take them to a payments page, which looks very similar to an online shopping basket. Once transaction is complete, the customer will receive a receipt and the CRM system will be updated accordingly.
Automatic telephone payments
It has been proven that allowing customers choice as to how they settle their account, not only improves payment time but decreases the chances of late and missed payments. This is why mis-sold mortgage and insurance claims companies choose to accept card payments over the telephone. Ordinarily they use an automated service known as IVR.
The system works with by the client entering their invoice number and payment details directly into the telephone keypad. Data isn’t stored – making the transactions secure. IVR payments systems work for the claims company 24/7 allowing them to accept card transactions around the clock, not reducing telephone revenue streams to office hours alone.
Be prepared, your company will be classed as high risk
We touched on it briefly earlier, finding a merchant account for a claims company can be rather difficult!
The reason is that most banks do not want to provide a payments service to businesses which will ultimately be claiming against them – no surprises there then! Having said that, there are some providers who will accept merchant account applications from mis-sold claims companies.
To warrant a successful application you will need to either prove existing turnover or have a business plan and substantial projections in place. Each application is reviewed on a case by case basis by the acquiring bank’s stringent underwriting processes.
Due to the nature of this type of high risk account sometimes application times take a little longer and additional paperwork required. The expert brokers we work with have experience in successfully placing claims companies with suitable merchant account providers.
SPEAK TO OUR HIGH-RISK SPECIALISTS
Are you a mis-sold mortgage claims company that has been served notice by your current merchant account provider?
With high-risk merchant accounts there is always a danger of receiving notice from your existing provider. Banks are constantly looking to balance their risk portfolio, therefore their attitude to risk in various sectors has the tendency to change. Just because you’ve been served notice by one bank doesn’t mean that another won’t accept you. We’re happy to help.SPEAK TO US TODAY
Multi-merchant accounts for Claims Businesses
No-one ever wants to risk having notice served by an existing provider, however there is a way around this. Having multiple merchant accounts working through the same payment gateway will mean you have a ‘back up’ if you were to receive immediate notice. When processing high volumes it’s sensible to use more than one provider to limit potential processing issues.
In practise businesses usually put a percentage of transactions through each provider – normally the one with better rates gets the lions’ share. Usually multiple merchant accounts aren’t considered until it’s too late and rarely talked about, however if you are thinking of using more than one gateway for your site speak to us today.
New claims business looking for merchant services advice
Finding card processing solutions for a new claims company presents additional problems, however it can be done with preparation. With industry experience, accountants projections and a solid business plan some acquiring banks will accept new applications. These tend to be at slightly higher rates to begin with, however once trading history is built newer claims companies will then have more options to choose from.
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