Are You Looking for Collections Credit Card Processing?
This is the right place if collection agency merchant services is what you need. Payment Savvy is ready to help you get an account and make collections easier than ever. To accept credit, debit and ACH, simply sign up and we can get started.
Want to know more about collections credit card processing? Read on!
The Collections Industry is Growing
It’s said to be over one third of all small businesses that have customers who hold unpaid invoices. As more and more people are falling behind on their payments (unfortunate as that is), the collections industry is multiplying.
Because of increasing amounts of customers bearing overdue bills, businesses have a hard time keeping on top of collecting payments. They need help. That’s why the number of collection agencies taking over the task of obtaining those payments is rising. Still, it can be incredibly difficult getting some debtors to pay what they owe, even for collection agencies.
Are Your Collections as Efficient as they Could Be?
These days businesses are relying on the competence of professional collection agencies. Of course, this is good news for your agency—there’s more work. But the outlook isn’t so great if you’re not able to get the job done quickly and efficiently.
Why would a business hire a less effective agency? Well, simply put, they probably wouldn’t. With this in mind, it is crucial that collection agencies have the best systems in place to make payments as easy as possible.
Difficulties of Collections Without Credit Card Processing
If consumers are not able to make payments by credit card—regularly the simplest and most convenient option available—then getting them to pay off bills is going to be all the more challenging.
That’s why the ability to process credit cards is vital to collections. Consumers find making payments by other means a real hassle. Without card processing, debtors are less inclined to make payments. They generally avoid inconvenient payment options and fewer bills get paid off. Plus, other types of payments take much longer to receive. Clearly, if you are still requesting payment by mail, it is about time for an upgrade.
All in all, collections without card processing is a lose-lose situation. But the success of your agency also depends on the quality of your processor.
Find a Quality Processor Who Won’t Take Advantage
Collections credit card processing is a great way to go especially if you find the right company. Settling for any merchant services you can get is not the best idea, though. In short, you might not receive all the same benefits that reputable companies provide, and they may charge you more than they should.
You see, collection agencies are considered high risk businesses according to banks. Because of this high risk classification, it can be harder to find quality processors that don’t try to take advantage of your position.
The fact that regular merchant account providers will not approve accounts for high risk businesses (like collection agencies) has caused some of the special high risk merchant account providers to see this as an opportunity to charge you outrageously high rates in exchange for approving you.
Quality processors only charge what is necessary along with giving you better service. They specialize in working with collection agencies. And because of superior service and convenient payment processing your collection agency will be all the more successful.
Watch Out For False Labeling with Poor Providers
Another way that unreliable processors can cause your business to fail is through falsely labeling your account as “retail” instead of its true merchant account category. If the bank does find out about a deliberate mislabel, your account will likely be closed.
Furthermore, you’ll be placed on the Terminated Merchant File list (or TMF), which means you won’t be able open it again ever. It’s a pretty bad scenario you can avoid by choosing the best of collection agency merchant services. Quality processors won’t label your account incorrectly and will still get you the benefits of credit, debit and ACH payment processing.
What to Expect When You Apply
Good processors who specialize in working with high risk businesses will be used to the qualities of collection agencies and aware of the services they need. But before handing over those coveted services a merchant account provides, the processors will have to look over some aspects of your business.
After all, it wouldn’t be smart for any processor to walk into an agreement before finding out if the business they are providing for is trustworthy and stable themselves, right?
So to give you an idea, let’s go over some of the ways your business will be evaluated before the account comes along. First of all, your business set-up, its advertising of collection services and how that affects the business’ level of risk will be gaged. A processor needs to know your level of risk when credit cards come in to play.
Basically, the more risk your business is seen to have (in terms of potential chargebacks) the harder it will be to get an account or the higher the fees you’ll have to pay. This is because the provider could lose a lot of money based on your charge backs, and this is their way of protecting themselves from that loss.
That said, by keeping your ratio of charge backs to payments low, you will be able to keep the highest standards in processing options working for you. Sometimes, in order to decrease charge backs it is even recommended to keep your least reliable customers from paying with credit. That way you can avoid a possible charge back.
Gain Success with the Benefits of an Excellent Provider
The bottom line is that by being able to accept more forms of payment your agency’s rate of collections is going to improve. With convenience comes more payments. It’s that simple. Once you have an account with a reputable provider, the true potential of your business can finally be realized. Payment Savvy wants to see you succeed.
Sign up with us today!