Collection Agency Merchant Account

Collection Agency Merchant Accounts: Credit Card, Check and Virtual Terminal Solutions

Contact Instabill today for its menu of payment processing methods

A collection agency merchant account is classified as high risk for a variety of reasons. However, Instabill specializes in working with high risk merchants. Once we confirm your collection agency is operating within state and federal laws, we will match you with one of our acquiring banking partners that offer collection agency merchant accounts.

Why are collection agencies considered high risk?

Between unsavory merchants escalating rates and resorting to scare tactics to get debtors to pay, it’s no secret that the debt collection industry does not have the best reputation. It is an industry loaded with risk — revenue is all dependent on the debtor making good — and is facing upcoming reforms.

Regardless, Instabill has been a high risk merchant account provider since 2001 and specializes in businesses and industries that have difficulty finding payment processing solutions.

How do I get a collection agency merchant account?

Simply click the button to start the process or speak with a merchant account manager directly at 1-800-318-2713.

Instabill offers numerous merchant account solutions for collection agency merchants in any category:
Offshore Collection Agency Merchant Account (with payment processing history):

  • Case-by-case basis
  • No solutions for collections merchants who purchase debt.
  • 3-6 months of payment processing history and statements that include company name, total sales, chargebacks, refunds and returns.
  • At least 3 months of business banking statements
  • Approvals: 7 business days to two weeks

Offshore Startup Collections Agency Merchant Account

  • Case-by-case basis
  • 3 months of business banking statements or a business bank letter
  • In lieu of business banking statements, we will accept 3 months of personal banking statements
  • Approvals: 7 business days to two weeks

Domestic Collection Agency Merchant Accounts

  • Application
  • Valid owner’s identification
  • A voided check or business bank letter
  • Business banking statements — at least 3 months worth — showing company name, chargebacks, refunds, returns and total sales
  • Documents of incorporation
  • Approvals: Up to 2 weeks

Virtual Terminal and Check Solutions for collections merchants

  • Complete application
  • Valid owner identification
  • Voided check or business bank letter
  • Articles of association
  • Approvals: 2-3 business days

Collection agency merchant account timetable

The approval timetable for collection agency merchant accounts varies between the type of solution Instabill offers and the merchant’s financial history. Below is our best estimate for approval times:

  • Offshore collection agency merchant account with payment processing history: 7 business days to 2 weeks
  • Offshore startup collection agency merchant accounts: 7 business days to 2 weeks
  • Domestic collections merchant account: 10 days to 2 weeks
  • Collection agency check solution: 2-3 business days

Merchant account fees for collection agencies

The fees you will pay with Instabill are competitive and affordable. However, our acquiring banks determine on a case-by-case basis what merchant account fees you pay.

Fees are contingent on several factors, such as the merchant’s processing history, type of industry and/or projected sales volume. Each merchant account is different, but typical fees include:

  • Chargeback Fee
  • Discount Rate
  • Merchant Account Fee
  • Merchant Account Registration Fee
  • Monthly Statement Fee
  • Transaction Fee

Virtual terminal for qualifying merchants

Along with credit card processing and check solutions, collection agency merchants want to offer clients the opportunity of making payments via telephone. For merchants who qualify, Instabill and your acquiring bank can grant access to a virtual terminal, enabling merchants to take payments over the phone.

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