Merchant accounts for payday loan companies in the UK

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

What is a payday loan?

A payday loan (sometimes known as a short term loan) is a relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages. Unlike traditional personal loans they are arranged over days rather than years, so can be used as a stop gap until wages are paid.

How does a payday loan work?

Payday loan companies have exploded in the UK market since 2008, with many lenders becoming household names. Millions of Brits use short term finance annually, and with the new legislation introduced to cap the rates they are paying – this is expected to increase.

How to get a merchant account for your payday loan company

The payday loan industry is a controversial one and it has become increasingly difficult to obtain payday loan merchant account or gateway. This is largely due to the majority of mainstream merchant providers that view the payday loan industry as high risk (link to page) This is because of two main factors;

  1. Charging high rates of interest with little, or in some cases, no affordability checks being carried out on potential customers before granting funds. This has created a negative reputation for the industry and lenders are cautious.
  2. Customers who are trying to avoid repaying the loan often issue chargebacks <link to info about this> which means, ultimately, the merchant provider is responsible for covering the shortfall, while they fight the chargeback case.

There are still options available to payday loan companies. Not all merchant providers have the same approval criteria, so if you approach the right one then getting approval for a payday loan merchant account, gateway or payday loan processing should be straightforward.


Applying for payday loan payment processing services

When applying for payday loan payment processing It’s important to get it right first time, to save both time and money.  Our expert advisors work closely with specialist providers in the industry. Specifically we can help in the following areas;

  • Payday loan merchant accounts
  • Payment gateway for payday loans
  • Payday loan processing software
  • Electronic payment processing for payday loans
  • Payday loan collection merchant account

Getting a merchant account for your payday loan company needn’t be complicated, we can point you in the right direction, saving time and cutting out the jargon. Speak to one of our specialists today.

IMPORTANT To be considered for an application you must have Consumer Credit License (CCL)  with the Financial Conduct Authority (FCA).

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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