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99.9% High Risk Account ApprovalsHigh Risk CC Processor for COLLECTION AGENCY Debt Collection Debt Brokers

Merchant Account for COLLECTION AGENCY / Debt Collection Debt Brokers

There are various reasons why a collection agency merchant account is deemed as high risk. But there is merchant account service providers who work with the high-risk merchants. Your agency can be matched with the banking partners that offer the merchant accounts for collection agencies.

Why are the collection agencies considered to be high risk?

The debt collection industry does not have a very good reputation because of the unsavory merchants who escalate the rates and also take help of some tactics to get the debtors to pay. There is a lot of risk in this industry and the revenue is dependent on the debtor being good.

You thus need to look for a merchant account provider who specializes in this business because it is definitely a major struggle to find a service provider for this industry.

The fees that are charged to the merchant account service

The fees are affordable and competitive; however, this may be dependent on a case to case basis and also based on High Risk vs Low Risk.

The fees are dependent on other factors too like the processing history and the type of industry as well as volumes. The typical fees that will be included are:

  • Chargeback Fee

  • Discount rate

  • Merchant account registration and compulsory fee

  • Fee for the monthly statement

  • Transaction fee



Terminal for merchants that qualify

A virtual terminal is set up for the merchants who qualify. Along with offering check solutions and credit card processing the merchant service provider wants to give to its clients the opportunity to make payments through various other means like on phone. This is thus why terminals are set up that helps the merchants take payments over the phone.

If you are familiar with the business of a debt collection merchant service then you know that banks do not want to deal with them. The collection business is a third party business whose role is to contact the customers to make them pay bills. These have very bad credit and that is the reason why the merchant service providers shy away from them.

If you are a startup or an established business you know ways to collect the outstanding debts. The process is long but is necessary for your business to be successful. Many businesses do not have the time to spend on collecting debts. The debt merchant services work with several underwriting banks that are OK with the collection agencies. That is you merchant provider who is to work with your industry.

Domestic and offshore merchant accounts

When it is the question of a high-risk business the payment processors shut the accounts and hold the funds.This is where the offshore merchant service providers grab a huge share.

The offshore accounts are pricey but they are for those high-risk businesses that have a bad credit score. On the other hand, if you are anew business then domestic accounts are your only option because an offshore merchant service provider will not be ready to take on the risk.

The type of account that you choose will affect the type of cards and what forms of payments you can accept.

What does the merchant service provider offer to you?

There are no setup or application fees. The money is only made when they collect on the outstanding debt. The fee is thus based on various factors but basically upon the age and the type of debt.

The debt management services are also for accounts that are to become outstanding.

The process of collecting debts is tricky for newcomers and is definitely not very favorable for the startups. If you do not have a good history then you will be turned away by the majority of credit processing providers.

It is regular that some households would miss out fee payments and get overwhelmed with debt. When people stop to pay then the unpaid debts are sent to the collection agencies and they go after the debtors recover back the money.

They are thus high-risk merchants because many traditional banks do not see their business to be favorable. There is a lot of chargebacks that this business has and thus banks deny them the merchant accounts.

What is needed to apply for the collection agency merchant account?

In order to get a merchant account for a collection agency, you must first fill in the application form. The following documents would have to be submitted:

  • Government id that is valid

  • A letter from the bank

  • 3 months recent bank statement

  • 3 months of recent processing statement

  • Social security number or employer identification number

  • Chargeback ratio must be under a set percentage

A merchant that operates online should have a secure and functional website.

What do the underwrites see in the application process?

The collection agency business should look like a reputed and legal business when their applications reviewed. The underwriter will access the risk and they thus see the application for anything that may look suspicious and may burden the processors.

The merchant should operate in the state or the region when they are licensed to operate and comply with the laws. Also, it is seen that the merchant understands the services and follows a good business model.





The credit score of the merchant, the processing history of a credit card, website, and bank statement and if the business has been terminated in the past by another processor is determined. If the account does not have any privacy and refund policies or lack of information then it could negatively impact the application. Unpaid bills, late payments, and negative bank balances, as well as a high chargeback rate, put the merchant at risk.


In order to have a higher chance of approval, the merchant should clear the debts and bills outstanding and should have enough money in the bank. They should have a stakeholder in the business with a good credit history before they apply for the account.

The underwriters know that the debt collection business is risky and thus the merchant is legitimate and has capital and is reputed. Those merchants who have everything in place have a high chance of getting approval.The first impression definitely matters

Why a chargeback is important to the processor

Many of the high-risk credit card processors take a chance and approve the merchant account. They look for signs and if the chargebacks are excess then they know that the business is a clear risk. A chargeback means that there is something not right with the business because of maybe transparency or customer service or a combination of many things. Many merchants, however, do not understand the importance of a chargeback mitigation program.

It is important that the merchants take the steps to ensure chargebacks stay below 2%.

When the merchant has excess chargeback then the credit card processor will have to bear some financial penalties. This means that the business is not profitable for the credit card processors and thus many at times even terminate some accounts with high chargebacks.







Possible High Risk Accounts

  • Online Gambling
  • Discount Clubs
  • Jewelry Sales
  • Memberships

  • Debt Consolidation
  • Computer Software
  • Computer Hardware
  • ISP/E-mail Services

  • Pharmaceuticals
  • Herbal Products
  • Off Shore Accounts
  • Alcohol

  • High Volume Merchants
  • Magazines Subscriptions
  • Travel Companies
  • Third Party Merchant

  • Dating Services
  • Adult Membership
  • Mail Order Call Center
  • Telemarketing

Get Started Now

High Risk Credit Cards aims to offer processor direct pricing for all merchants across the United States. We want you to get the best deal that is available to your business. Click here to find out more information on our generous high risk iso program.

After years of experience in high risk processing, High Risk Credit Card Merchant Services has become a high risk merchant account provider committed to helping the high risk industry accept credit cards.

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