Merchant Account for Collection Agencies
Processing Services We Can Provide
In this day and age, the importance of ecommerce can never be understated. Not only has ecommerce made transactions significantly faster, but people also need not bother themselves with dangerous elements like getting mugged on their way to an important business transaction. As ecommerce has made transactions faster, safer, and more reliable, there's been a meteoric rise in the popularity of merchant accounts. Companies without merchant accounts run the risk of being put out of business merely because they cannot access the funds that their clients send them.
A merchant account is essentially an account that allows traders to accept payments made via payment cards such as debit and credit cards. As most financial transactions are now facilitated by credit or debit cards, all businesses have been forced to adapt to this change in the market. As a result, there has been an increase in the demand for merchant accounts.
This meteoric rise in the popularity of payment cards and merchant accounts has had a significant impact on the collection industry as well. Nowadays, all collection agencies are expected to have merchant accounts. However, this is easier said than done as a recent study of the market showed that getting a merchant account for a high-risk collection agency is tough to pull off. This complicates things for collection agencies because if they are not able to accept payments made via credit and debit cards, they run the risk of being put out of business. This is where we help our clients. We have vowed to make sure that none of our clients ever have to see their clientele dwindle just because they don't accept popular credit card carriers like Visa or American Express.
Online Merchants
Most collection agency startups have found that it is quite difficult to set up a merchant account. Because of the high-risk nature of the collection industry, credit card processors like PayPal reserve the right to deny your startup a merchant account without having to justify their decision. This makes things even harder for collection agencies who are looking to quickly establish themselves in the market, as they stand to lose a ton of money during the time it takes to get a merchant account. We try to smoothen this process for our clients and make sure that your startup doesn't suffer a major setback in its initial stages.
What most traders don't know is that you can boost your collection agency's chances of getting a merchant account by tampering with your risk factor. Strictly speaking, if you could somehow lower the risk associated with your transactions from high risk to a moderate or even a low risk level, you can stand to better your company's foothold in the industry.
There are many regulations that hamper the progression of collection agencies in the market. For example, in the United States of America, collection agencies are regulated under both federal and state regulations. This means that they must obtain an appropriate business license and an appropriate business model.
Before you can start receiving funds into your merchant account, you are also required to set up a payment gateway for your account. This gateway enables you to receive online payments from your clients. An alternate to the payment gateway is a virtual credit card terminal. While they both may seem identical at first, there's a subtle difference here that makes all the difference. The said difference is that your online payment gateway makes it possible for your customer's payment to reach the merchant bank's processor, while a virtual credit card terminal is just another way of accepting credit cards i.e. virtual terminals just permit the merchant to access their accounts. Once they have access, they are required to manually enter every credit card sale. Before you opt for either option, it is important to understand the benefits of each.
If you're a collection agency, there are many great payment gateway options for you to explore. We recommend using High Risk Charge for your collection agency as it not only accepts all major credit cards but also actively welcomes all new startups. Moreover, there are multiple currencies to choose from, and no limit on volume makes it a very lucrative option. For a struggling collection agency, this can make all the difference and propel your business to the upper echelons of the industry.
Another aspect for you to consider is the different types of banking options available for your organization. While most collection agencies flock over to domestic banking options, we are here to tell you not to be so hasty when making such a monumental decision. Most traders use domestic banking options as they have lower rates and better banking security. However, startup businesses cannot forget about offshore accounts completely because they're necessary for specific types of business transactions. Hence, there are pros and cons of each banking option. We instruct our clients to ponder on this decision carefully before making an educated decision on the matter.
It goes without saying that the collection industry has many complications and subtleties that must be understood extensively if your firm stands to firmly establish itself in the ever-changing market. If you're a collection agency that specializes in credit repair services, this applies to your business as well because even the slightest changes in the market can change your annual profit massively. This is why most collection agencies in the world rely on merchant accounts to get them through. Hence, it is a necessity of the industry to use these trading options. What would separate your firm from others in the travel industry (should you opt for our services) is that you will have someone in your corner that is not only rooting for your success but counting on it as well.