The debt collection industry has had its ups and downs over the years but continues to grow impressively nonetheless. The industry witnessed growth across its many verticals including auto finance, healthcare, mortgage lending, and many others.
“Aggregate household debt is expected to continue to grow through 2022, resulting in an increase in potential revenue sources”, as per CallMiner.com. There is a clear need for debt collection, whether in-house or third-party services. Student loans and Health continue to contribute largely to growth in this diverse industry.
The Debt Collection Industry is considered High Risk
An industry whose primary role is to collect payment from clients is viewed as high risk by traditional banks and credit card processors making it difficult to process payments for debt collection agencies.
A number of factors are responsible that make debt collection business extra risky.
- Nature of business
- Business instability
- Potential unsafe business debt
- Strict government regulations
- Friendly frauds or chargebacks
- Merchants using scare tactics to get debtors to pay gives the industry a bad reputation
Providers also require a business to show consistent revenue streams when applying for a merchant account. It especially becomes difficult for start-ups or new businesses to acquire merchant account services since merchant account providers demand a long processing and positive credit history.
Start collecting debt with Debt Collection Merchant Account Services!
How do I get a debt collection merchant account for my business? Regardless of the many obstacles faced by the agencies, there are a whole lot of reputable merchant account providers willing to offer credit card processing services that are tailored to meet the requirements and demands of this specific industry.
The many different types of businesses within the Collection Industry that can avail merchant account services include:
- Account, bill, or debt collection services
- Collateral recovery and repossession services
- Credit reporting services
- Debt portfolio collection services
- Delinquent account collection services
- Fee-based or contraction tax collection services
EMB, International Bank Services (IBS), Instabill are some of the top-rated merchant account providers that offer expert customized services to debt collection agencies.
Get started collecting debt with a Debt Collection Merchant Account with easy approvals and reasonable fees.