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;
- 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.
- 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.
SPEAK WITH AN EXPERT TODAYApplying 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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