Is collections credit card processing something you need?
For most collection agencies, merchant services are a must now. Why? Well, processing debit and credit cards as well as ACH is needed to make collections efficient.
More payment options equal more payments. It’s that simple.
If you want to improve your collections success rate, Ultimate Merchant Providers can help you. Sign up with us to get an account and start processing credit cards with the proper services. You’ll receive everything you need.
Collection agencies are in demand.
Now more than ever collection agencies are being called upon to collect overdue bills for small companies. While the number of customers who haven’t paid off invoices is going up, companies have a hard time doing all the collections work themselves. So, instead they pay collection agencies to do the job for them.
This is good news for the industry. Collection agencies are keeping busy. Nevertheless, even professional debt collectors can find it exceedingly challenging to compel consumers to make payments. So how can collection agencies makes their business more efficient?
How can your collections be improved?
If you have a collection agency that is currently without the ability to process credit cards, there is definitely room for improvement. Even if you do have credit card processing, you might not have the quality services that bring about the best collections success rates.
It is possible to make collections a lot easier and a lot speedier. And by getting those better collections results your collection agency will ultimately see success through happier clients, more clients and, frankly, more money.
The way to get all those great things is by having the right processing services at your disposal. Accepting credit, debit and ACH make collecting outstanding debt much more smooth and painless.
What are the advantages of credit card processing?
To say credit card processing services are worthwhile to collection agencies is rather an understatement. It’s pretty plain to see that card processing abilities are crucial. Without them, people with past due bills—who didn’t even make the effort to pay those bills on time in the first place—are going to be very difficult to convince into making inconvenient payments.
The best processing services are champions at making payments as simple for consumers as possible. People are used to paying with credit cards. Why shouldn’t they be able to use them to make payments to your agency? Without the complications, the hassles, more customers will be inclined to pay.
Not only do collection agency merchant services bring in more payments, they do it at a much snappier pace. This happens in two ways: customers tend to make payments much earlier on and those payments actually go through quicker. The waiting game is no longer an issue with the right processor.
What if a customer needs to pay by check?
These days customers can demand certain conveniences, otherwise they might refuse to cooperate. Flexible payment options are one of those things that a lot of customers are accustomed to, and if they’re not available, customers may avoid working with you.
Credit and debit cards are a lot of peoples’ go-to preferred payment option, but there are still times when checks are favored. That’s why having ACH is an important payment option to have. ACH (Automated Clearing House) can be used to process checks online or over the phone and the fees for using it are generally lower than that of debit or credit card processing. It’s a win-win option.
Why collection agencies have it rough.
In the world of merchant accounts, it’s not so easy for collection agencies. A lot of agencies have a hard time finding processors they can rely on and work with in the long term. The reason for this is that banks, as well as underwriters, are generally opposed to accepting debt collections businesses.
They feel that collection agencies are too high risk because chargebacks are high, standard transactions are relatively big, and regulations involving debt related services are pretty ample as well. As a result, a large number of collection agencies are denied accounts by regular providers.
Where can collection agencies turn?
Fortunately, there are a fair number of merchant account providers that are willing to work with businesses in high risk industries such as debt collections. These processors have less strict guidelines in order to accommodate high risk businesses.
There has to be a tradeoff, however. In exchange for the processor dealing with your less than ideal risk status, you might have to deal with harsher terms and increased rates. The truth is account providers have to do it this way otherwise they wouldn’t be protecting themselves from loss.
Banks have to cover for businesses that can’t pay for their chargebacks and this can add up to a lot. So higher fees for you, the high risk collection agency, is just the way the cookie crumbles. That said, terms and fees do vary processor by processor and case by case. Hence why, not settling for a subpar processor is the best advice.
Go for a quality account provider.
You don’t want to end up with the short end of the stick when it comes to signing up for an account. While higher rates on high risk merchant accounts are the norm, the rates and fees shouldn’t be outrageous. Nor should the terms on your contract be incredibly difficult to follow. They should be fair.
When you apply for any kind of merchant account the company will first have to assess your business’ risk. Your history of chargebacks, the way you present and carry out business and the stability of your business are all factors that influence the terms of your contract. The last step is to make sure you understand the stipulations involved, and are satisfied with the terms, before you sign off on your account.
After your collections payment processing options are in place, take note of how reliable they are. Are they up to your standards? If so, chances are you’ve chosen decent quality collection agent merchant services. Congrats!
Want to try a processor that specializes in your industry?
Ultimate Merchant Providers has the top notch collections credit card processing you need with competitive rates. Sign up with us to get an account!